KUALA LUMPUR (Dec 20): VS Industry Bhd has committed to “urgently” place all migrant workers it hired through a recalibration programme into the group’s direct employment, as part of its firm action plan following dialogues with labour rights activist Andy Hall.

In a statement, VS Industry also said it will commission an independent third-party social compliance audit by March 2022, where findings will be shared transparently to Hall “as the basis for ongoing engagement on worker welfare”.

The electronic manufacturing services (EMS) provider said it has undertaken a two-way dialogue with Hall in recent weeks, and both parties have agreed on a firm action plan and timeline going forward to address migrant worker issues identified in the process.

On top of the employment and immigration status conversion, VS Industry said it will arrange to immediately house these workers in compliant hostels.

The company also said it commits to continue upholding its zero recruitment fee policy, where all fees and costs relating to recruitment of migrant workers are borne entirely by VS Industry.

“The group will step up efforts to verify if there had been any instances of workers under the programme having to pay recruitment fees or related costs to external party.

“If such instances exist, VS shall take immediate remedial action to reimburse the workers and this investigation and remediation work shall be verified in March 2022 by an independent social compliance audit, the findings of which VS shall share transparently with Andy Hall as the basis for our ongoing dialogue together,” it said.

Details of the audit will be finalised in liaison with Hall, the company added.

VS Industry managing director Datuk SY Gan pointed out that the company has immediately started working on implementing the aforementioned action plan.

“It will take a bit of time, as the challenges identified in our management of some migrant workers in our company through the recalibration programme involves other parties as well.

“However, we are determined to uphold our commitment towards safeguarding the welfare of all employees, including our migrant workers,” Gan said.

“Being a responsible corporate citizen, we place great importance on ESG (environmental, social and governance) issues, as we understand that ultimately, a business with good ESG practices is one that will flourish and sustain over the long term,” he said.

“Moving forward, the leadership at VS has also committed to ensuring all future migrant workers shall be employed directly by the group, with no involvement of third-party actors,” he added.

Hall, in the statement, said he looks forward to the positive outcomes for migrant workers “that can surely arise from the action plan laid out by VS being implemented in a timely and genuine manner”.

“I wish to reiterate that the primary emphasis of my work remains on protecting the rights and interests of migrant workers in Malaysia. In this regard, I am grateful for the openness of VS management to understand the concerns I have brought up and the willingness of the company to work together with me for the betterment of these workers,” he added.

On Dec 6, VS Industry said it reached out to Hall following references the latter made about the company during a recent investor briefing on the topic of migrant workers' welfare in Malaysia.

In late November, news emerged on concerns over labour practices among manufacturers, specifically EMS firms, after Dyson Ltd announced that it had cut ties with ATA IMS Bhd following an audit of its labour practices and allegations made by a whistleblower.

Shares of VS Industry fell one sen or 0.78% to RM1.27 at noon market break, giving it a market capitalisation of RM4.86 billion.