PETALING JAYA: Efforts made by SKP Resources Bhd’s regarding the International Labour Organization’s (ILO) forced labour indicators have shown that the company’s practices do not amount to systemic forced labour and are in compliance with Malaysian labour law, according to an audit by TÜV Rheinland Malaysia Sdn Bhd.
Additionally, TÜV Rheinland reported in its final audit that considerable improvements have been made since December 2021 with regard to working hours, overtime work processes and adequate remediation of recruitment fees at SPI Plastic Industries (M) Sdn Bhd.
TÜV Rheinland also verified that SKP has completed its remediation programme across all of its subsidiaries and that all foreign workers have been fully reimbursed for all recruitment fees previously paid to recruitment intermediaries at a justifiable and reasonably calculated level.
SKP executive director Ivan Gan said the exercise has shed light on some shortcomings of the business operations.
“All workers have now been fully reimbursed for all recruitment fees previously paid to recruitment intermediaries, and working hours and overtime issues have been addressed. Both of these issues are those which (independent migrant worker rights specialist) Andy Hall constructively raised to us previously,” he said in a statement.
Hall highlighted the areas for potential industry leadership into the future, including the need to pay a living wage; always ensure decent working hours; improve accommodation further; provide more comprehensive incentives to workers; guarantee even more ethical recruitment; and to ensure more effective workplace social dialogue.
In December 2021, Hall cited SKP over concerns regarding the management of its foreign workers, in particular relating to overtime work and adequate remediation of recruitment fees.
TÜV Rheinland was then tasked with examining whether SKP and its subsidiaries were involved in practices that might be considered any of 11 indicators of forced labour as defined by the ILO and verify whether it had carried out an adequate remediation programme.
The audit took two months to complete, covering six of SKP’s subsidiaries hiring non-Malaysian workers, beginning in early April and completed last month.
