VS Industry Appoints PwC to Review its Labour Practices

The Review will be based on the 11 International Labour Organisation (ILO) Indicators of Forced Labour

VS Industry Berhad - photo courtesy of vs-i.com

Leading Electronics Manufacturing Services provider in Malaysia, V.S. Industry Berhad has appointed PwC Consulting Associates (M) Sdn Bhd (PwC Consulting) to conduct an independent third-party review of VS’ labour practices for migrant workers hired through the Recalibration Programme (Review).

PwC Consulting is a multinational professional services organisation that specialises in assurance, advising, and tax services. PwC’s objective is to build trust in society and solve major issues. Experts in investigation, compliance, risk management, and controls will be part of the company’s multidisciplinary team. They’ll work with an outside legal counsel and a labour rights consultant.

The 11 International Labour Organisation (ILO) Indicators of Forced Labour will be used to conduct the Review. This exercise is being carried out to identify, understand, and close gaps in labour practises as part of the Recalibration Programme.

According to VS Industry’s statement, the Recalibration Programme was an initiative by the Government to allow employers in certain sectors such as construction, manufacturing, plantation, agriculture and services to legally employ undocumented foreign workers or holders of expired long-term visit passes in certain sectors. The 11 ILO indicators of forced labour are abuse of vulnerability, deception, restriction of movement, isolation, physical and sexual violence, intimidation and threats, retention of identity documents, withholding of wages, debt bondage, and excessive overtime.

Managing Director of VS, Datuk S.Y. Gan said, “We are pleased to have PwC consulting onboard to conduct an independent review of VS’ labour practices for migrant workers hired through the Recalibration Programme. We recognise their professionalism, reputation and credibility, which also  demonstrate our seriousness and commitment in addressing any gaps  identified specifically for the labour practices under the programme and more  importantly how to close these gaps.”

“The Review undertaken by PwC Consulting will be comprehensive and includes support from a labour rights consultant. The scope of PwC Consulting’s appointment also extends to providing a workshop to VS’ Board and management to increase knowledge and awareness of forced labour issues and risk management. This is to further enhance our social pillar under our ESG (Environmental, Social, Governance) initiatives. We believe that this is an important part of our duty to continuously improve the welfare of our workers.”

PwC Consulting’s review will be supported by an independent labour rights consultant with significant experience in undertaking labour rights reviews in Malaysia including for the ILO, and helping companies address identified shortfalls.

On a related note, the Group acknowledges the contribution by Migrant Worker Rights Specialist, Andy Hall, for bringing certain labour-related issues to VS’ attention.

“VS is committed to responsible business conduct in all of our operations and is working closely with the Responsible Business Alliance (RBA) to promote ongoing assurance to the RBA Code of Conduct,” Gan further added.

RBA is the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains.