Malaysia

‘Dishonourable’ ILO classification dents Malaysia’s reputation among investors

MTUC hits out at Putrajaya for shunning responsibility to furnish world body with required reports since 2006

Updated 5 years ago · Published on 01 Apr 2021 4:33PM

‘Dishonourable’ ILO classification dents Malaysia’s reputation among investors
Putrajaya’s actions in the past year demonstrate a lack of respect for the labour movement, says MTUC’s Penang secretary. – The Vibes file pic, April 1, 2021

GEORGE TOWN – Fresh concerns have been raised about Malaysia’s standing, especially in the eyes of foreign investors, following the International Labour Organisation’s (ILO) recent decision to place the country in a less-than-honourable category over its application of labour standards.

The Malaysian Trades Union Congress’ Penang secretary, K. Veeriah, said the move will surely dent the country’s reputation, reducing its attractiveness as a foreign direct investment destination.

He described as sad and regretful Putrajaya’s failure to furnish the world body with the required report on what it has done to implement the standards that Malaysia itself ratified along with other member nations.

In ILO’s Application of International Labour Standards 2021 Report III/Addendum (Part A), Malaysia is placed in the category of “serious failure to submit” any report related to ILO’s conventions and recommendations adopted since 2006.

According to ILO, international labour standards are legal instruments that lay down principles, rights and minimum standards related to work and workplaces. The standards can be either conventions, which are binding international treaties, or recommendations, which are non-binding.

“Once a country has ratified an ILO convention, it is obliged to report regularly on what it has done to implement the related standards,” said the world body on its website. 

“Procedures can also be initiated against member states that fail to comply with conventions they have ratified.”

Veeriah, in a statement, said each country needs to provide information in response to the constant flow of requests by ILO through its conventions and recommendations.

"Sadly, there seems to be complete neglect by our governments, past and present.

"Though that is the case, what is shocking is the disclosure that our government has failed in its fiduciary duty to do so since 2006 – an inordinate delay of about 15 years.”

This means that successive governments – Barisan Nasional, Pakatan Harapan, and now, Perikatan Nasional – have failed to fulfil their obligations to the requirements enshrined in ILO instruments, he said.

US Customs and Border Protection has issued a directive to its personnel at all US ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove over alleged forced labour. – The Vibes file pic, April 1, 2021
US Customs and Border Protection has issued a directive to its personnel at all US ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove over alleged forced labour. – The Vibes file pic, April 1, 2021

Human Resources Minister Datuk Seri M. Saravanan has attributed the delay in responding to the ILO request for information, to the inability of Parliament to reconvene and deliberate on the matter.

Parliamentary proceedings have been suspended under the current state of emergency imposed to curb Covid-19.

“Without venturing into the polemics of the political manoeuvring to circumvent a legitimate sitting of Parliament, one needs to ponder whether there is an unfettered commitment to subscribe to ILO’s core labour standards by our government,” said Veeriah.

Putrajaya’s actions in the past year demonstrate a lack of respect for the labour movement, in line with its failure to conform to core, internationally accepted labour standards, he added.

Litany of labour allegations against M’sian firms

The ILO move comes in the wake of a slew of actions by the United States against Malaysian exporters over the alleged maltreatment of workers.

In September last year, the US banned the import of palm oil from FGV Holdings Bhd following claims that the company used forced labour in its production process.

It came after a year-long investigation by US Customs and Border Protection (CBP) that was said to have revealed the abuse of vulnerable workers, deception, physical and sexual violence, intimidation and threats, and retention of identity documents.

CBP also raised concerns about the potential use of child labour in FGV’s palm oil production process.

In December, the US banned imports from Sime Darby Plantation Bhd (SDP), another palm oil giant, over concerns that its workers faced a litany of abuse.

CBP said there was evidence workers faced sexual abuse and physical violence, and saw their wages withheld and movements restricted.

The agency’s moves led to international buyers reportedly requesting suppliers last month to reduce or exclude FGV and SDP products entering not only the US, but also Europe, Australia and Japan.

In mid-March, Shift, a global non-governmental organisation on business and human rights practices, quit Sime Darby’s human rights commission after the company sued an activist over alleged worker abuse.

And most recently, on March 29, CBP issued a directive to its personnel at all US ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove Corp Bhd over alleged forced labour.

In a notice, the agency said certain disposable gloves had been “mined, produced or manufactured in Malaysia by Top Glove with the use of convict, forced or indentured labour, and are being, or are likely to be, imported into the US”. – The Vibes, April 1, 2021

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