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The Labour Transformation Programme addresses how mills and plantations can take practical steps to improve their labour practices and add value to the company's competitive edge.
Palm oil refineries are dedicated to upholding their commitment according to their responsible sourcing policy of No Deforestation, No Peat, and No Exploitation (NDPE). This initiative includes actively engaging suppliers to improve their labour management practices.
The collaboration between Earthworm Foundation and palm oil refineries aims to support mills and plantations in identifying areas for improvement and implementing an action plan to meet refineries' NDPE requirements. Having good labour practices in place will help companies reduce their potential risks of law and labour violations and enhance workers' well-being, performance and engagement. Hence, mills and plantations can gain a competitive commercial edge based on the current industrial requirements.
The Labour Transformation Programme (LTP) is a 2-visit engagement.
In this engagement, Earthworm Foundation, refineries, and supplying mills collaborate to share information and identify gaps concerning labour practices. To achieve this, the engagement with entities will include the following:
The LTP is neither a certification nor audit programme nor is it a human rights assessment. Instead, it is an engagement which provides tailored support to engaged entities so they can take practical steps to improve their labour practices based on the recommendations.
The scope corresponds with the No-Deforestation, Peat or Exploitation (NDPE) requirements, along with standards established by the Malaysian Sustainable Palm Oil (MSPO) 2.0 and the Roundtable on Sustainable Palm Oil (RSPO).
It also complements the international frameworks for the protection of human rights: such as the UN Guiding Principles on Business and Human Rights, the International Labour Organization (ILO), the OECD Guidelines for Multinational Enterprises, the Universal Declaration of Human Rights (UDHR) and the United Nations Sustainable Development Goals (UNSDG). These priorities closely reflect the international market's concerns surrounding forced and bonded labour, child labour and recruitment practices.
The scope is a five-step supplier engagement framework that covers eight topics.
Clear and quantified progress can be reported to buyers and international markets to maintain market access.
Received personalised action plan to improve labour practices and implement strategies to map/monitor own supply chain.
Improved working conditions, morale, and productivity.
Earthworm Foundation has completed 23 LTP engagements.
In 2017, the Fuji Oil Group launched a supply chain Labour Transformation Programme (LTP) in collaboration with Earthworm. LTP identifies labour-related issues with Fuji Oil Group's suppliers and helps its suppliers build management systems to address these issues.
'The LTP helps third-party mills and plantations to refine their management practices on labour rights. The program focuses on four key labour 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.'
Contact Lynda Lim, Technical Lead (Social & Human Rights), at l.lim@earthworm.org for further information on the Labour Transformation Programme (LTP) and how Earthworm Foundation can help.
