KUALA LUMPUR, Feb 15 — Sime Darby Plantation (SDP) will reimburse its current and former foreign workers recruitment fees totalling RM82.02 million on Feb 17, following the company’s comprehensive audits both internally and by independent organisations.

According to a statement today, the group said it will reimburse 15,078 current foreign workers an aggregate sum of RM38.55 million.

The workers hail from Indonesia, India, Bangladesh, Nepal, Myanmar, Cambodia, Sri Lanka and Pakistan.

Additionally, SPD is also setting aside a sinking fund amounting to RM43.47 million to reimburse 19,565 former foreign workers.

Group managing director Mohamad Helmy Othman Basha said that since the imposition of the Withhold Release Order (WRO) by the United States Customs and Border Protection (USCBP) in December 2020, the group has implemented the audit practices.

"Unfortunately, the audits were unavoidably delayed as the Malaysian government had imposed strict nationwide movement controls over several months in 2021 to contain the spread of the Covid-19 virus.

"This entire exercise has certainly been a learning experience for us. SDP has always been proud of having industry-leading policies and practices. However, over the last year, we have learnt that there is always room for introspection and review, that improvement is a continuous journey,” he said.

Mohamad Helmy said that the plantation company spent a long hard year auditing, examining and occasionally unearthing entrenched practices that needed to be improved or changed.

SDP implements new ESG scorecard

Meanwhile, he said the SDP has implemented new and significant governance and structural changes to ensure that workers’ welfare and wellbeing are improved and entrenched within the organisation, in addition to a new Environmental, Social and Governance (ESG) scorecard and accountability mapping process.

"We have also developed new platforms and channels for dialogues with our workers to improve existing communications, build trust and ensure that their voices are heard.

"We have taken stern and swift action against those who have not adhered to the company’s policies,” said Mohamad Helmy, noting that the consequence management and accountability will help the group’s efforts to ensure a sustainable cultural shift.

He added that the SDP has been working with independent migrant worker rights specialist, Andy Hall since October 2020 to revise its Responsible Recruitment Procedure (RRP) and guidelines that govern the hiring of its foreign workers.

The new policy emphasises the appointment of suitable recruitment agents via open tenders, with appropriate checks and balances to ensure that workers are no longer exploited or encumbered with recruitment fees.

SDP will also conduct regular due diligence on appointed recruitment agents to establish that they are licensed and have credible track records.

"Our selected agents chosen through the transparent open tender process will undergo mentoring and training to address any gaps in their understanding of our requirements.

"Their performance will be monitored to ensure contractual accountability for compliance to ethical and transparent recruitment standards, as well as our own policies and standards,” said Mohamad Helmy.

The plantation company has also rolled out "Social Dialogue” -- a two-way communication platform across 121 estates and 33 mills in Malaysia.

In every estate and mill, foreign workers from each nationality would nominate a representative for on-site dialogue with management representatives.

To ensure that all improvements and initiatives planned and implemented are sustainable, the board has approved an ESG scorecard that carries as much weight as the operational scorecard.

This new scorecard is designed to ensure that clear indicators are implemented, monitored and applied across the upstream Malaysia organisational structure.

Additionally, a new Social Welfare and Services department has been established, where a dedicated team will oversee the implementation of policies and procedures related to the well-being and safety of workers; ensuring that day-to-day upstream operations comply with internationally recognised best practices.

 "Much work has gone into ensuring that SDP’s operations are free of the scourge of forced labour. However, that is only half of our goal today.

"We also want to make sure that both governance and structural improvements are entrenched, and that critical culture change takes root quickly to eliminate any persistent recalcitrance. We are taking today’s challenges as an opportunity to create positive change,” added Mohamad Helmy. — Bernama