
This comes days after Helsinki-based NGO Finnwatch found that IOI estate workers from India paid up to US$606 (RM2,523) in recruitment fees but lived in poor housing conditions and were paid below the minimum wage.
Reuters quoted IOI as taking the NGO’s findings seriously, giving an assurance that it would improve working conditions and its implementation of labour policies.
“Within the next months, IOI will undergo an audit supervised by one of our key customers and assisted by a reputable international labour rights consulting firm,” it said in an exchange filing.
However, the names of the customer and consulting firm were not mentioned.
Reuters reported that the audit would aim to confirm any labour policy non-compliance or unsatisfactory working conditions affecting the company’s 16,000 workers in Malaysia.
But IOI denied Finnwatch’s allegations that workers had to pay recruitment fees, saying employees had instead paid “illegal money” to unknown individuals in their home country.
This was beyond its jurisdiction and should not be considered as recruitment fees, it maintained.
Nonetheless, it reiterated its commitment to fulfil ex-gratia payments to workers who had been charged the fees prior to the introduction of a no recruitment fee policy in 2017. Some 918 workers had already been paid in June.
Workers were guaranteed to receive the minimum wage, it said, adding that guidelines had been issued to allow for transparency and for workers to verify their working hours while calculating their rightful wages.
Last Friday, IOI said it was aware of a letter from the US Customs and Border Protection agency on an investigation into an allegation of labour abuse in the company.
According to IOI, the letter was addressed to migrant worker specialist Andy Hall to acknowledge the receipt of a petition providing information on alleged forced labour conditions within the company.