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Palm Oil Innovation Group (POIG)


About POIG


The Palm Oil Innovation Group (POIG) aims to support the Roundtable on Sustainable Palm Oil (RSPO) through building on RSPO standards and commitments and by demonstrating innovation to implement existing RSPO standards as well as with additional critical issues.

POIG focuses on three thematic areas of environmental responsibility, partnerships with communities, corporate and product integrity. It also focuses on creating and promoting innovation in the Palm Oil industry. 

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POIG will demonstrate that by setting and implementing ambitious standards, the industry can break the link between Palm Oil and deforestation, as well as human, land and labour rights violations.

Musim Mas' plantations and trading divisions joined POIG on 16 November 2015. The Group will implement and promote the formal requirements of the POIG Charter, as well as abide by POIG's terms of engagement. 

For more information on POIG, please click here

POIG Charter and Indicators

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The POIG Charter can be assessed here and verification indicators here

Labour Audit Report

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The Group undertook a labour audit with Verite, in August 2016 as part of its efforts to assess labour conditions in its operations.

The assessment aimed to identify risks of non-conformance to POIG’s Charter, RSPO Principles and Criteria, Verité Best Practice Standards and other international norms on worker protection and Occupational Health and Safety. They also targeted to determine the areas of innovation required.

While the labour assessment highlights areas of labour risks, it also presents potential learnings through recommendations on how Musim Mas’ management systems and tools may be improved.

The audit and findings are categorised into three broad categories, namely, labour and human rights, compensation and hours, as well as health and safety. 

Some of the good labour practices identified during the assessment included:
  • The company does not employ child labour; 
  • Workers are guaranteed the legal minimum wage as their base wage, regardless of their ability to meet the quota;
  • Probationary workers are upgraded to permanent status after three (3) months as per law;
  • The company has a low precarious employment rate;
  • There are good policies on maternity (pregnancy testing is not discriminatory, work accommodation during pregnancy, respect for women’s legal right to maternal leave, and clear breastfeeding policy); and
  • There is no indication that workers’ identity documents are retained.

The key areas for improvement identified during the assessment included:
  • Addressing the number of overtime hours;
  • Protecting workers who are not on the official payroll;
  • Improving housing policy with regards to gender; and
  • Ensuring sufficient water supply.

In the one-year period since the assessment leading up to the publication of the report today, the Group has reviewed the gaps in the highlighted areas and worked to address highlighted issues, enabling case closure in most aspects. Musim Mas is still working on other matters requiring lengthier consideration and implementation processes to straddle business realities with labour rights considerations.

Corrective actions undertaken following the assessment, of which are detailed in the assessment report include: 
  • Capping of normal period overtime hours at 14 hours a week and (3) hours a day; ensuring all overtime is voluntary and paid in accordance with legal standards;  reviewing of rotation system to address work life balance; and limiting the number of off days that workers may choose not to take; 
  • Formalising of kernet workers (usually workers’ spouses) through developing part-time employment contract and insurance. Upon compliance with the employment terms, kernet workers are recruited as permanent workers;
  • Providing of unrestricted menstrual leave to female workers in accordance with applicable laws; recognising of female workers as head of family for housing entitlement as verified in the family card; and
  • Studying of water consumption pattern in the household to derive a new water distribution system to ensure equitable supply of free clean water to all households.

To view the report, please click here