Shah Alam, Malaysia – Top Glove Corp. says it has made its first remediation payment of RM4.4 million (€890,000) to resolve a migrant labour issue at the company.
The 10 Aug announcement came less than a month after the US customs and border protection agency (CBP) placed a detention order on disposable gloves manufactured by two Top Glove subsidiaries for the suspected mishandling of migrant workforce.
At the time, Top Glove said the issue specifically involved recruitment fees paid by foreign workers to employment agents.
But the gloves maker maintained that it had been bearing all recruitment fees since the adoption of ‘zero-cost recruitment’ policy since the beginning of 2019.
The remediation payment, Top Glove said, was made to migrant workers who joined the company prior to the implementation of the zero-cost recruitment policy.
In total, the gloves manufacturer expects to pay a remediation fee of RM53 million, subject to finalisation with the US customs office.
In a separate statement issued last month, Top Glove said it has been in “cordial and constructive” engagement with the US customs office to resolve the detention order, which was placed on its products 15 July.
“We have made good progress and look forward to arriving at an agreement on remediation within the month of August 2020,” said Top Glove in a 30 July statement.
Top Glove's share prices on the KLSE took a 10% hit to MYR19.60 following the detention order on 16 July.
As of 12:00pm 11 Aug, company shares prices stood at MYR27.90, up nearly 30% compared to 16 July.