Collective bargaining FGV recognises and respects the right of all our employees to form and join trade unions of their choice and to bargain collectively. We do not restrict in any way our employees’ right to freedom of association and collective bargaining. As of 2021, about 42.1% of our employees are members of various unions within the Group (or 68% of total non-executive employees) whose employment are covered under collective agreements. We encourage our non-executive employees to join workers’ unions to provide them with a platform to have their voices heard and provide feedback, in particular with regards to their concerns and grievances. For emphasis, FGV has concluded Collective Agreements (CA) for the year 2022 to 2024 with fourteen (14) unions out of sixteen (16), twelve of which are internal unions. The CAs along with existing ones cover workforces in our plantation, mills, factories, sugar refinery, bulking and logistics facilities which represent almost the full spectrum of our operations. At FGV, there are in-house and national unions to represent employees at different segments in the Group. We meet each union twice a year, and more frequently, when there are matters arising that need urgent resolution. Regular engagements are conducted with union representatives to facilitate timely resolution of issues arising and to ensure that workers’ welfare and rights are protected. In addition, Joint Consultative Committees have been established at plantations for the benefit of our workers including migrant workers to raise issues and concerns that affect them. operations in the Group. This project involves upgrading of existing housing, new housing and providing better access to healthcare, education and essential supplies. In November 2021, FGV appointed ELEVATE as the independent auditor to conduct an assessment of FGV’s operations against the 11 ILO Indicators of Forced Labour. The assessment is part of FGV’s efforts towards petitioning for the revocation of the WRO by the CBP. ELEVATE is an independent sustainability and supply chain service provider with vast experience in advancing social compliance and addressing forced labour risks by applying a worker-centric approach. ELEVATE is currently finalising a gap analysis based on desktop reviews and management interviews. The site assessments are expected to begin in April 2022 after which remediation and verification will be carried out. Following the assessment, remediation and verification, FGV plans to make a submission to the CBP to petition for the modification of the WRO by the end of 2022 or as soon as the verification exercise is completed. FGV foresees that if remain unresolved, the WRO will have an impact on FGV’s reputation and market presence in the long run. Respecting Human Rights 82 FGV HOLDINGS BERHAD RESPONSIBLE BUSINESS ABOUT THIS REPORT RESPECTING HUMAN RIGHTS
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