Following the Finnwatch original report published in 2014, RSPO had requested the relevant certification bodies to conduct a thorough check of the minimum wage; workers’ accommodation conditions; the agreement of workers’ contracts through labour agencies; and the retention of worker’s passports on the estates in question.

One of IOI Group’s plantations in Pamol Kluang Complex was verified in January 2015 by the international certification body BSi (British Standards Institution). After the verification’s findings were made known, RSPO issued a statement dated 9 April 2015.

IOI welcomes the statement by RSPO which is a balanced response to Finnwatch’s reports. The statement highlighted that the verification has revealed non-compliance in regards to minimum wages of foreign workers involved in piece-rated work. (Note: During a subsequent re-verification audit in end March 2015, BSi has agreed that corrective actions have been taken by IOI to restitute the four workers listed in the findings.)

At the same time, the RSPO statement has also stated that the probationary periods for new employees were as per the “Guideline on the Implementation of The Minimum Wages Order 2012”. Regarding workers accommodation conditions and the retention of workers passports, BSi found that the existing facilities and process are acceptable by the employees. The RSPO statement also agrees that IOI has taken measures to improve the working conditions on its estates which were mentioned in the Finnwatch report.

IOI will continue to monitor the measures which has been stated in its Action Plan published in December 2014 (just before the verification visit by BSi) and the implementation of the Plan is now in its advance stage. IOI will continue to work with RSPO to ensure full compliance with its Principles and Criteria on its certified mills and plantations.

IOI remains focused in its efforts to run a business that is sustainable and competitive within the industry landscape. This is in line with IOI’s long-held commitment to achieve a balanced development for the people and the planet.