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Engaging Palm Plantations on Labor Rights
Impact on the ground - palm
August 22, 2021

Since 2019, Bunge Loders Croklaan and Earthworm Foundation (EF) have worked together to improve the welfare of workers in our supply chain in Malaysia, furthering our ”no exploitation” policy commitments.

This work is done through the Labor Transformation Program (LTP), a cross-company initiative to help third-party mills and plantations refine their management practices on labor rights. The LTP focuses on four key labor rights areas prevalent in the Malaysian palm oil industry – employment contracts, recruitment practices, grievance mechanisms and freedom of movement – and engages small and medium-sized mills and plantations to address challenges in these areas.

LTP engagements are structured in three stages spanning six to eight months. They include:

  1. Visit 1: The first stage of engagement consists of an on-the-ground assessment of existing practices. Awareness and capacity-building mentoring are provided for the supplier’s operational management team
  2. Inter-visit: Reviewing the outcomes of the field assessment and shape a tailored action plan for the entity to work towards
  3. Visit 2: Reviewing the recommendations highlighted in the action plan and verifying progress, providing additional guidance on unclosed gaps. A summary report is prepared to maintain the entity’s transformative momentum.

To date, four mills supplying to our Pasir Gudang refinery have committed to the LTP. Watch the video below to learn more about one plantation’s experience in the program.