Back to overview
Labor Transformation Program: delivering on our commitment to protect labor rights and welfare in our palm oil supply chains
February 10, 2020

Since 2019, Bunge Loders Croklaan (BLC) and Earthworm Foundation (EF) have been working towards improving the welfare of workers in BLC’s supply chain in Malaysia; aligning with BLC’s ‘no exploitation’ policy commitments.

This is being done through the Labor Transformation Program (LTP), a cross-company initiative to help third-party mills and plantations refine their management practices on labor rights. To date, four mills supplying to BLC’s Pasir Gudang refinery have committed to the LTP.

The LTP is a three-part engagement focused on four key labor rights areas prevalent in the Malaysian palm oil industry – employment contracts, recruitment practices, grievance mechanism and freedom of movement. Through a process of intensive engagement, small and medium-sized mills and plantations have been chosen as transformation sites to tackle any possible challenges in the key areas.

LTP engagements are structured in three stages spanning six to eight months. They include:

1.Visit 1: The first stage of engagement consists of an on-the-ground assessment of existing practices. Awareness and capacity-building mentoring are provided for the supplier’s operational management team

2.Inter-visit: Reviewing the outcomes of the field assessment and shape a tailored action plan for the entity to work towards

3.Visit 2: Reviewing the recommendations highlighted in the action plan and verifying progress, providing additional guidance on unclosed gaps. A summary report is prepared to maintain the entity’s transformative momentum.

“With the continued support of our members and clients, we are looking forward to the LTP generating more impact across small and medium-sized players in the milling and plantation landscape,” said Ramain Murugeson, Project Manager at Earthworm Foundation.