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IOI Group Introduces Revised Policies on Human Rights at Workplace
31/10/2017Corporate Sustainability

During the revision to IOI Group’s Sustainable Palm Oil Policy (SPOP) in June 2017, the Group had further enhanced and clarified our commitments in the area of Human Rights and Workplace which include amongst others, no recruitment fees charged to workers at any stage in the recruitment process, in both receiving and sending countries, payment of monthly minimum wage in accordance with the current labour regulations, access of trade unions to workers and adopting both the Free and Fair Labor Principles and UN Guiding Principles on Business and Human Rights.

Since then, the Group has been engaging extensively with non-governmental organizations (NGOs) like Finnwatch, Rainforest Action Network (RAN) and Tenaganita, as well as its employees in revising our Recruitment Guideline, Minimum Wage and Leave Pay Policy and the Freedom of Association Policy. They are now finalised after all feedback from stakeholders have been taken into account.

Foreign Workers Recruitment Guideline & Procedure in Malaysia
Under the Group’s commitment of “No Recruitment Fee” as stated in the above guideline, IOI will cover the official costs of recruiting foreign workers during all stages in the recruitment process. Where recruited foreign workers are concerned, no recruitment fees, whether by us, our contractors, our agents or their sub-agents in receiving and sending countries will be charged to them. 

We have also made clear that recruitment agents are responsible for ensuring their sub-agents do not charge any recruitment related fees to the workers. If such fees are found to be charged to the workers, IOI will require the recruitment agents to repay the workers. Furthermore, IOI will suspend our relationship with the agent if this matter is not rectified.

Minimum Wage & Leave Pay policy
Under this revised policy, IOI is committed to pay all workers the statutory monthly minimum wage and overtime compensation in accordance with the current labour regulations. IOI also further pledges to go beyond providing minimum wage to our workers by introducing productivity incentives that will enable its workers to earn at least 20% more than the minimum wage.

In addition, IOI is also planning to conduct a living wage assessment among its workers based on a credible methodology with the goal of providing its workers a living wage which is sufficient to afford a decent standard of living1  for the worker. The assessment is expected to be completed in Q2 2018.

Equal Opportunity Employment & Freedom of Association policy

In this revised version, there is further clarity regarding the accessibility of trade unions to IOI estates, and no interference with the organizing of activities by workers, worker representatives, or representatives of trade unions. 

Additionally, to ensure that our workers are recruited and provided a work environment which is free from unlawful discrimination, harassment or victimization, the policy articulates clearly that workers can submit their grievances to the Employees Consultative Committee (ECC). They can also submit their grievances confidentially and with anonymity via the Grievance Procedure using alternative channels (email, website, hotline, etc.) provided by IOI.

For more information, the full document of the above-mentioned policies can be viewed and downloaded from our website HERE.

Dato' Lee Yeow Chor
Group Chief Executive Officer
IOI Corporation Berhad 

1 Elements of a decent standard of living include food, water, housing, education, health care, transport, clothing, and other essential needs, including provision for unexpected events as defined by Global Living Wage Coalition.

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