Workers stand near palm oil fruits inside a palm oil factory in Sepang, outside Kuala Lumpur, February 18, 2014. REUTERS/Samsul Saidare mistreated by managers, face poor living conditions and pay high recruitment fees, according to a report to be published on Wednesday by human rights group Finnwatch.
IOI faces the accusations days after saying it will assist in any investigation after the U.S. Customs and Border Protection said in a letter to an activist that it was investigating the firm over forced labour allegations.Similar U.S. investigations have in the past led to some Malaysian companies, including two palm oil producers, being banned from selling their products in the United States.
"The case also brought into light serious, persisting gaps in the IOI Group's wider recruitment and wage policies, and commitment to respect for human rights," Finnwatch said in the report. Finnwatch shared the report on the investigation with Reuters ahead of its publication on Wednesday. It has also shared the findings and the full report with IOI, and has engaged with IOI since last August.