Malaysia: Social Audit of Stabilo Plant in February

25 February 2020 13:58

The BWI team consisting of BWI Asia-Pacific Regional Executive Officer Suhaime Sulaiman, Timber Employees Union of Peninsular Malaysia Secretary General Nor Azlan Yaacob and Global Director For Wood and Forestry Coen van der Veer, were accompanied by the Chair of the workers council, Dieter Pfister, and Stabilo Global Management representatives Nils Rosenbaum and Dr Andrea Smölz. They visited the Stabilo Malaysia facility on 18-19 February including two suppliers and two dormitories, (one for the migrant workers and one for the local workers.)

The visit was well prepared by the local management, John Pang and K.H.Sim, and during the visit the BWI team had the opportunity to discuss freely and openly with the in-house union representatives among them, the  president En Hj. Abdul Rahim B Adiam.

Nearly all of the recommendation of the previous social audit in 2013 were followed up.  The BWI team congratulate the (local) management and workers for their efforts.  Social audit   recommendations, this time around, were aimed at strengthen the company-level social dialogue. 

The joint recommendations of the monitoring committee were to:  

1) Involve the in-house union in the process of preparation of the checklist;

2) Provide relevant information on the financial situation to facilitate social dialogue at company level. The in-house unions accept that this information will be provide on a confidential basis; 

3) Both management and in-house union will seek legal counsel whenever there is a question as to the following articles of the collective agreement being in line with the applicable law and regulations §10.1;14.7;15.5;23.3;25.1;

4) In the next negotiations for a collective agreement, the salary structure will be revised; 

5) Dormitories:  Should highlight to the service provider that some recreational facilities should be provided as well as encouraging workers to use those found on the factory premises;  and

6) The company commits that the same principles will be applied for migrant and home0country workers and that workers will be informed of them.

Coen van der Veer, stated after the visit that “Stabilo has made a long -lasting commitment to its production and marketing operations in Malaysia, the working conditions meet all the criteria we set in the international framework agreement.  In the visits to the suppliers we have had reasonable assurances that Stabilo carries its commitments into their supply change. The monitoring committee had some concerns related to some paragraphs in the CBA and whether they were in alignment with existing but frequently changing laws and regulations, but we are confident that the local management and the in-house union will find appropriate solutions. The value for me in having this IFA and these social audits is that it has real impact on the ground and that we can foster social dialogue a company level”