
Finnwatch, which has been tracking working conditions at IOI since 2014, found that IOI estate workers from India paid up to US$606 in recruitment fees but lived in poor housing conditions, according to Reuters.
The workers were also not given copies of their employment contracts, the Helsinki-based group claimed.
“The case also brought to light serious, persisting gaps in the IOI Group’s wider recruitment and wage policies, and commitment to respect for human rights,” Finnwatch was quoted as saying by the news agency.
The findings by the rights group followed a probe conducted at an IOI estate in Pahang after receiving complaints from a relative of a worker.
IOI told Reuters it would comment on the report – the findings of which the NGO had shared with them – after its public release and directed the news agency to a “grievance tracker” on its website where it addressed the specific complaints raised by Finnwatch.
According to the “grievance tracker”, IOI had suspended recruitment of workers from Indian recruitment agencies after Finnwatch said workers “were forced to pay high fees to secure a job”.
It also said the fees had been illegally collected by “unknown actors who cannot be verified and were beyond the firm’s jurisdiction”.
However, the company said it had demoted an employee for mistreating a worker, and released guidelines on providing basic amenities and verifying work hours, following Finnwatch’s probe.
Last Friday, IOI said it was aware of a letter from the US Customs and Border Protection agency on an investigation into an allegation of labour abuse in the company.
According to IOI, the letter was addressed to migrant worker specialist Andy Hall, to acknowledge the receipt of a petition providing information on alleged forced labour conditions within the company.