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KUALA LUMPUR (Oct 6): Top Glove Corp Bhd announced that it will pay RM136 million over the next 10 months to compensate its migrant workers, as part of its efforts to resolve the Customs and Border Protection (CBP) import ban ) from the US on forced labor. claim (es.
“The remediation will now be based on the revised sum of approximately RM136 million, as per the independent consultant’s recommendations, following the completion of the independent consultant’s comprehensive verification work,” the world’s largest rubber glove manufacturer said in a presentation to Bursa Malaysia. .
The remediation sum announced today is far greater than the glove maker’s estimated compensation of RM 53 million.
The group said the new compensation amount affirms its commitment to remedy its migrant workers with respect to recruitment fees previously paid by migrant workers to agents or other parties.
Migrant workers will receive remediation for the next 10 months starting this month, he said.
“Top Glove has duly submitted the necessary information to US Customs and Border Protection and is following closely with them, with a view to speedy resolution of the matter and revocation of the Release Withholding Order (WRO)” added.
Prior to this, the group said that it made two remediation payments of RM4.4 million each to migrant workers who were employed by the group before 2019, on August 10 and September 10.
In July, CBP imposed an import ban on two Top Glove subsidiaries over concerns about forced labor. The ban came at a time when demand for gloves soared amid the Covid-19 outbreak.
Two subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd, received the WRO.
The North American market accounted for approximately 27% of the group’s total exports last year.
Top Glove’s share price closed 28 sen or 3.14% lower at RM8.64, making it one of Bursa Malaysia’s top losers today.
The group’s market capitalization stood at RM70.29 billion. 48.35 million actions were carried out.
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