Responding to a question by R Sivarasa (PH-Sungai Buloh), Saravanan said the labour department conducted a probe and found the company had not breached forced labour laws, as claimed by US Customs and Border Protection (CBP).
CBP had issued a withhold release order (WRO) on SDP’s products in December 2020 following the allegations, based on information on the presence of all 11 of the International Labour Organization’s (ILO) forced labour indicators. The order effectively banned imports of SDP products into the US.
Saravanan said, however, that the company had only committed offences under Section 13(2) of the Workers Compensation Act, for “failure to report workplace accidents involving migrant workers” to the labour department within 10 days of the date of the accident.
He said that following the import ban of palm oil to the US, the ministry conducted inspections on companies that were issued the WROs.
“We also carried out integrated enforcement operations and conducted education programmes.
“The government is ramping up efforts to combat labour exploitation in the country,” he said.
His answer prompted Sivarasa to ask whether the ministry had engaged with CBP and what proof the agengy had of the forced labour claims as the US would not simply issue the WRO without evidence.
Saravanan said he discussed the matter with US ambassador to Malaysia Brian D McFeeters, who provided an explanation on the issuance of the WROs.
He said the CBP issued WROs without informing the authorities in the country in which the companies were operating.
“They do not give us any details of the offences committed. The CBP and the human resources ministry view these indicators of forced labour differently.
“For example, the employers of Indonesian workers at oil palm plantations in Sabah and Sarawak do not provide daycare for their children. So, the children would just follow their parents to the plantations.
“These children do not work in these plantations but, at the international level, this is seen as child labour,” he said.
Saravanan’s said the labour department’s probe into the 11 indicators, as specified under the ILO as “forced labour”, revealed no breach whatsoever.
“So, we have asked the US to provide us a detailed explanation on the offences committed by these companies.”
He said his ministry had taken steps, such as mandating employers to provide proper housing to both local and migrant workers in accordance with the Workers’ Minimum Standards of Housing and Amenities Act 1990.
It had also implemented the e-wages system to ensure migrant workers were paid on time and to prevent any withholding of wages.
The 11 indicators fixed by ILO are abuse of vulnerability, deception, restriction of movement, isolation, physical and sexual violence, intimidation and threats, retention of identity documents, withholding of wages, debt bondage, abusive working and living conditions, and excessive overtime.
‘White man’s game’
Dr Xavier Jayakumar (Ind-Kuala Langat) interjected Saravanan, calling the issue of the ban by CBP a “white man’s game”.
“I want the minister to tell the US and UK ambassadors not to lecture us on forced labour. Their history (on forced labour) is much worse than ours.
“I think this is a white man’s game that intends to stop us from exporting our commodities overseas. We have to be firm on this,” he said.
Responding to the MP, Saravanan said: “I have delivered what Yang Berhormat Kuala Langat said, but in a polite way. But I was firm in stating our position.”