Malaysia: CSR Report Card 2008 – Part 2 (Workplace)

The Malaysian press highlighted several corporate social corporate social responsibility (CSR) issues in 2008. However, the CSR angle was not explored in the mainstream press. The CSR Digest‘s first editorial seeks to put together a report card on how businesses fared on the CSR front in 2008, based on press clippings and news reported during the year.

Urban Nightmare by LeoLeonardo

In the previous part, Malaysian CSR marketplace issues were explored. This week, the CSR Digest will take a look at the workplace.

Workplace

CSR at the workplace took a press beating this year, especially in terms of safety and welfare of migrant workers in Malaysia. For example, in April, the death of three foreign workers, reported to be caused by the tilting and slipping of an overloaded gondola, was highlighted in the local press.

Human Resources Minister, Datuk Dr S. Subramaniam, was reported to have said, “The maximum weight a gondola can carry is 350kg, but with the three workers plus the cement, I believe it would have been more than the maximum weight allowed,” Furthermore, Subramaniam added that  the gondola was supposed to have a braking system as a safety measure in case the cables broke, but it seems that the braking system was also not functioning.

Initial investigations by DOSH (Department of Occupational Safety and Health) found that the safety measures were not followed in this circumstance. Subramanian said that legal action would be taken against the company if it is found that in its investigation that the company had failed in its duties. Up to now, nothing more has been reported on this matter.

Construction by OnurY

Neglect of employees continued to make major local and international headlines when Nike confirmed that they have found “major worker violations” at one of its Malaysian contract factories. Migrant workers were reported to have been forced to live in cramped and foul conditions, while their wages were withheld until the foreign worker fee, levied by the government, was repaid.

Meanwhile, the Human Resources Ministry countered the accusations made against Hytex Integrated Bhd, which runs Nike’s Malaysian contract factory in question. Subramaniam stated that there has been no abuse at the factory and no contravention of labour laws.

Hytex Intergrated might not have broken any local laws or business convention. This notwithstanding, the workers were transferred to Nike-inspected and -approved housing after the outcry, and their fees were reimbursed. This is perhaps an example of Malaysia’s laws falling behind international labour standards.

Finally, Malaysia’s businesses were criticised by the International Trade Union Confederation (ITUC) in its annual survey this year. In particular, British American Tobacco (BAT) came under fire by ITUC, which alleged that BAT impaired its union here through dismissals and reclassifying union members as management staff, although their job scope remained the same.

Tobacco by To Tu

Furthermore, reports state that BAT barred employees belonging to two of its subsidiaries, Tobacco Importers and Manufacturers Sdn Bhd and Commercial Marketing and Distributors Sdn Bhd. According to the ITUC, the result of all these actions has been to reduce the number of unionized workers to less than twenty.

BAT is not the only business to have reclassified its employees. According to the ITUC, Standard Chartered Bank also went through a reclassifying process, forcing many employees out of the union. The Malaysian Trade Union Congress and the Standard Chartered Bank Officers Union mounted pickets and protests against this action.

Nothing on corporate social responsibility was mentioned in reports relating to these workplace matters.

Next week

CSR Report Card 2008 – Part 2 (Environment)

• YTL Corp and carbon trading
• The struggle between logging companies and indigenous folk
• Damage and deaths caused by landslide – the developers’ CSR