Top Glove to pay RM136m in remediation fees to migrant workers
MALAYSIAN glove maker Top Glove will pay a revised sum of RM136 million (S$44.5 million) in remediation fees to migrant workers who joined the company before it implemented a new standard for ethical recruitment in January 2019.
This sum exceeds the RM53 million announced in August, following recommendations by Top Glove's independent consultant after the completion of comprehensive verification work, said the company in a regulatory filing on Tuesday.
Migrant workers will receive remediation payments over the next 10 months, starting this month. Top Glove had made the first two remediation payments in August and September.
Last month, the company submitted an audit report on its labour practices towards its migrant workers to the US Customs and Border Protection (CBP). The report was part of its attempt to resolve a detention order on import, or Withhold Release Order (WRO) issued by the CBP to two Top Glove subsidiaries in July.
The firm said it is following up with the CBP, with a view to an "expeditious resolution" of the matter and revocation of the WRO.
Top Glove shares closed down S$0.08 or 2.8 per cent to S$2.83 on Tuesday.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Syngenta to withdraw China IPO application on weak market: sources
Chinese firms’ fundraisings in limbo as IPOs scrutinised at home and abroad
China’s Huawei continues rebound with strongest earnings growth since 2019
Hatten Land gets notice of default, letter of demand for RM14 million, appoints financial adviser
ComfortDelGro wins contracts to run buses in Manchester
Sam Bankman-Fried, at sentencing, acknowledges FTX customers have suffered