The United States passed a Malaysian producer for unfair treatment of workers

Customs and Border Protection have reported that FGV Holdings workers are physically and sexually abused, forced into debt slaves and exploited, the BBC reports.

Shipments from FGV Holdings and its subsidiaries will be held at US Customs In a statement, the Malaysian company stated that it had taken “concrete steps” to improve working conditions.

The Customs and Border Protection Service reported that a year-long investigation revealed violations such as “restrictions on the movement of workers, isolation, physical and sexual violence, intimidation and threats, confiscation of identity documents, non-payment of wages, debt bondage, poor living and working conditions and overtime. ‘

The investigation also raised suspicions that forced child labor could be used in FGV Holdings’ palm oil production process. FGV Holdings is publicly traded and, according to the official website, represents around 15% of its production. total palm oil produced in Malaysia per year.

Palm oil is present in various foods and is also used in the production of cosmetics, medicines, and biofuels.

“The use of forced labor to produce this widespread product allows companies to profit by oppressing vulnerable workers,” said Brenda Smith, Executive Assistant to the Trade Division of Customs and Border Protection.

“These companies create unfair competition in the market for legally produced products and consumers receive products that do not meet ethical standards,” he added.

The United States has begun introducing more import bans since 2016, when an amendment to a law again gave Customs and Border Protection the right to respond appropriately to products made through forced labor.

In recent months, the United States has issued a series of alleged court orders to suspend the dispatch of (goods) against some Chinese companies on suspicion of forced labor in the Xinjiang Uyghur Autonomous Region.

Specific actions

FGV Holdings was disappointed with the decision, saying it had taken “concrete steps” to demonstrate “its commitment to human rights and labor standards.” The company’s palm plantations primarily employ migrants, including more than 11,000. Indonesians and almost 5,000. Indian.

FGV Holdings said it had improved its hiring procedures and invested about $ 71.5 million. for the rehabilitation of houses in plantations. The company denied allegations that it had confiscated the passports of its workers and said it had installed 32,000 units in the 68 residential complexes. “Safes” where workers can safely store documents.

Previous fears

FGV Holdings noted that its employees have been under public discussion for the past five years. Other organizations have previously raised concerns about FGV Holdings’ business practices.

In January, the non-profit Roundtable on Sustainable Palm Oil suspended the sustainability certification process for some FGV Holdings plantations.

The organization also suspended the certificate awarded to FGV Holdings’ Kilang Sawit Serting palm oil plant, which had been lost two years ago due to labor code violations.

The value of FGV Holdings shares declined eight percentage points on Thursday.