DELAWARE: Cargill Inc said Sime Darby Plantation Bhd (Sime Darby) hasn’t presented sufficient information to address forced labour allegations by the US, which prompted the trader to halt palm oil purchases from the company.
US-based Cargill urged Sime Darby, the world’s biggest palm oil grower, to provide details on how it had addressed the US Customs and Border Protection’s (CBP) findings of forced labour in its products.
Sime Darby has yet to come forward with that information, Cargill said in an emailed response to questions Friday.
Some of Malaysia’s largest palm and rubber-glove producers have been under scrutiny in recent years over allegations of migrant worker abuse.
The CBP in late January said it would seize Sime Darby’s palm oil and related goods as it had sufficient information to determine that the company’s products were made using convicts, forced or indentured labour.
Cargill has suspended all new sourcing of palm oil and derivative products from Sime Darby since Feb 25.
“Cargill does not tolerate human trafficking, forced labour or child labour in our operations or supply chains,” the company said. It will review its decision when more information becomes available.
Yesterday, Sime Darby said it will submit a report on its labour practices to the US by the end of the month, conforming to a request for an independent assessment.
The company said it had taken steps to improve working conditions in previous years but said those efforts “may not be good enough,” according to group managing director Helmy Othman Basha.
‘Bury our heads’
“We cannot bury our heads in the sand. It’s an issue that needs to be tackled,” he said in a webinar. “There will be a lot more attention on this.”
The CBP did not provide specific details to support its findings of forced labour, nor did it offer guidance for the ban to be lifted, other than for Sime Darby to submit an assessment of its labour practices, Helmy said.
The CBP first announced an import ban on Sime Darby’s products in December 2020. Since then, the company has undertaken audits internally and with independent organisations and will be ready to submit the report by end-April.
Sime Darby’s estates and mills in Malaysia spread across 342,000 hectares, roughly four times the size of Singapore. It has about 24,000 workers in its plantations, including 15,000 migrant employees from nine countries. The US ban has a far-reaching impact on the company, including its reputation, customers, and its licence to operate.
Sime Darby said it has taken measures to improve its labour rights over the past several months, such as revamping its grievance channel to guarantee worker confidentiality and introducing new mobile apps to help staff raise complaints on housing.
It said it will also give employees more freedom of movement and better access to medical amenities, prevent workers from bringing their children to work, and reimburse recruitment fees. - FMT
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.