JTKSM has yet to receive report on First Solar's unethical labour practices

PUTRAJAYA - The Department of Labour Peninsular Malaysia (JTKSM) has yet to receive any information from First Solar (Malaysia) Sdn Bhd regarding the list of contractors allegedly involved in unethical labour practices, said Human Resources Minister V. Sivakumar.

He said First Solar (Malaysia), a solar panel manufacturing and installation factory operating at the Kulim Hi-Tech Park in Kedah, needed permission from its head office, First Solar, Inc. in Arizona, USA, to provide information on the company's four engaged contractors.

"The Human Resources Ministry will conduct further investigations into all contractors involved after receiving a list of contractors' names from the corporate headquarters.

"The ministry is committed to fighting the problem of forced labour in all employment sectors in this country and will not compromise with any party carrying out such activities," he said in a statement today.

On Aug 16, media reported that top US solar panel maker First Solar said an audit of its manufacturing operations had uncovered unethical labour practices at its Malaysia factory, sending the company's shares down about five per cent.

In a corporate sustainability report, First Solar said four onsite service providers in Malaysia had subjected migrant workers to unethical recruitment practices, including "the payment of recruitment fees in their home countries, passport retention, and the unlawful retention of wages."

According to Sivakumar, the workforce at First Solar (Malaysia), which is owned by First Solar, Inc., consists entirely of local workers.

However, he said the four contractors hired by First Solar (Malaysia) in the areas of security screening, cleaning, building maintenance and warehousing did not meet the standards of the Responsible Business Alliance (RBA), such as unethical cost practises in recruitment, whether in Malaysia or the country of origin, keeping of passports by the employer and withholding wages.

According to him, First Solar has taken steps to ensure that all contractors return the passports and withheld wages of foreign workers. The company has also implemented a reimbursement plan to assist contractors in their efforts to repay hiring costs in their home countries.

First Solar is also taking steps to ensure that its service contract and contractor employment policy are updated so that the listed violations are not repeated in the future, he said. - BERNAMA