29 June 2021

Workers at Malaysian palm oil company IOI Corp (IOIB.KL) are mistreated by managers, face poor living conditions and pay high recruitment fees, according to a report to be published [...] by human rights group Finnwatch.

IOI said it would comment on the report after its public release and directed Reuters to a "grievance tracker" on its website where it addressed the specific complaints raised by Finnwatch.

IOI faces the accusations days after saying it will assist in any investigation after the U.S. Customs and Border Protection (CBP) said in a letter to an activist that it was investigating the firm over forced labour allegations. read more

[...]

Helsinki-based Finnwatch said it found IOI estate workers from India paid up to 45,000 rupees ($606.31) in recruitment fees, lived in poor housing conditions and were not given copies of their employment contracts. It also criticised its wage policy.

"The case also brought into light serious, persisting gaps in the IOI Group's wider recruitment and wage policies, and commitment to respect for human rights," Finnwatch said in the report.

[...]

In the 'grievance tracker' on its website, IOI said it had suspended recruitment of workers from recruitment agencies in India after Finnwatch said workers were forced to pay high fees to secure a job. IOI said the fees paid by its workers were illegally collected by unknown actors, cannot be verified and were beyond the firm's jurisdiction.

[...]

Following Finnwatch's investigation, IOI said on its website it had demoted an employee for mistreating a worker, and released guidelines on providing basic amenities and verifying work hours.

IOI told Finnwatch that some workers are paid less as they do not reach the set work targets, according to the company's response that is also published in the report.

[...]