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PwC finds no evidence of systemic forced labour practices within VS Industry

06/07/2022 08:41 PM

KUALA LUMPUR, July 6 (Bernama) --  PwC Consulting Associates (M) Sdn Bhd has not identified evidence of systemic forced labour practices within electronics manufacturing services provider VS Industry Bhd at the conclusion of its four-month independent review.

VS Industry, which in February appointed the consultancy to conduct a review of its labour practices for migrant workers hired through the Recalibration Programme, said PwC Consulting has completed the labour practices review, which was undertaken together with a labour rights consultant who concurs with this finding.

“PwC Consulting conducted site visits across 19 VS factories and hostels and held formal interviews and focus group discussions with approximately seven per cent of VS Industry’s foreign workforce in Malaysia, as well as a number of local workers. Ad hoc discussions were also undertaken with VS Industry’s workers,” the Johor-based company said in a statement today.

The independent review was based on the 11 International Labour Organisation Indicators of Forced Labour and the scope extended to entire workforce of its Malaysia operations.

VS Industry managing director Datuk SY Gan said PwC Consulting did, however, identify gaps and areas for improvement primarily relating to recruitment fees, overtime, accommodation and effective communication.

“The board has promptly acknowledged these matters and took immediate remedial actions,” he said.

Regarding recruitment fees, the group has already fully reimbursed the recruitment fees paid by workers who joined prior to 2017.

As for the remaining issues, Gan said some have been resolved, while others are in the midst of being remedied.


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