Friday 29 Mar 2024
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KUALA LUMPUR (Jan 3): Supermax Corp Bhd announced that it has rolled out a new and comprehensive foreign worker management policy to strengthen its human resource (HR) and migrant worker policies and practices effective November last year.

In a statement on Monday (Jan 3), Supermax said it takes its compliance issue seriously and had undertook to meet the International Labour Organisation (ILO) standards in 2019.

The glove maker said the implementation of the new foreign worker management policy will speed up the process in meeting ILO standards and ensure that compliance and best practices are well adopted in the company’s HR practices.

“The company is currently in the process of updating the US Customs and Border Protection of improvements made under its new policies.

“The effectiveness and implementation of these policies will be inspected by different levels of on-going audits with at least two auditing processes, and two additional US-based auditors which will conduct analysis and monitoring against the ILO 11 Forced Labour Indicators,” it said.

The 11 indicators highlighted by Supermax 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, as well as excessive overtime.

Supermax noted it implemented its zero cost recruitment policy on Oct 1, 2019 where it has also completed the remediation of recruitment fees paid by all its active migrant workers.

The company added it has also commenced remediation of the same fees to ex-workers within the scope since September last year, and expected to complete the process by March.

Meanwhile, Supermax said among the slew of refinements being made includes strengthening of its human resources team as well as internal capacity building among the supervisory and management levels on the prevention of forced labour and education on workers’ rights.

Along with this, the glove maker said it is also modernising its human resource tools and systems that will enable real time data management as well as employee self-service that will promote greater transparency and understanding of entitlements and wages at workers’ level.

“The company is making significant changes to improve benefits, facilities and living conditions provided to Supermax workers. Several measures to improve working and living conditions are currently in progress, which include major refurbishment to its hostel facilities that will provide workers with adequate privacy.

“New facilities to improve leisure and lifestyle elements of workers have also been added to the company’s existing modern dormitory. Refurbishment and renovation work are currently on-going and expected to be completed by mid of February 2022.

“Workers will soon get to enjoy the new added facilities which will include a designated smoking area, ATM facilities, canteen and dining improvements, and other amenities,” it said.

Local, foreign workers are now on equal footing

According to Supermax, the company may be among, if not the first in the industry to adopt an equal pay and benefit structure for foreign workers in Malaysia.  

This, it said, would mean both local and foreign workers, including workers of on-site vendors, are now on an equal footing when receiving pay and benefits, which will further eliminate any discriminatory practices.

Along with the implementation of these new policies, Supermax pointed out that it has proactively raised its minimum wage to RM1,400 to be applied across all categories.

“The company will also be addressing the use of sub-contractors in January 2022 and shall ensure the rights and welfare of the workers employment by these sub-contractors are protected.

“To meet these objectives, Supermax is in the midst of adopting a hybrid approach in its human resource management system to ensure compliance is carried across its on-site supply chain. This will also improve monitoring and management of workers from on-site vendors.

“To further strengthen the welfare and communication among migrant workers, the company is revising and updating its company handbook that will promote awareness of employment and workers’ rights as well as set up a worker’s committee which will consist of representatives among migrant workers and elected by all migrant workers employed by Supermax,” it said.

Supermax added that a series of engagement sessions with all its migrant workers will be held this month, as the company rolls out the revised employment handbook and employment contracts that will be in line with the enhanced and new policies introduced.

To implement greater transparency and accountability, Supermax said it will put in place a whistleblowing channel to be administered by a reputable independent third party. The latter will report directly to the board of directors of Supermax.

"The board assures that the company is committed to employees’ wellbeing and respecting their rights at all times.

“Supermax views compliance as a serious matter, and is cooperating with authorities and relevant bodies to ensure that the new policies implemented meet with the ILO standards,” it said.

At Bursa’s 12.30pm break on Monday, Supermax’s share price settled down five sen or 3.4% at RM1.42 for a market value of about RM3.87 billion, with 4.87 million shares transacted so far.

Edited ByLam Jian Wyn
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