business

Top Glove working with CBP to resolve forced labour issue

KUALA LUMPUR: Top Glove Corp Bhd will work closely with the US Customs and Border Protection (CBP) towards the expeditious resolution, revocation and modification of the withhold release order (WRO).

In its filing with Bursa Malaysia today, Top Glove said the CBP is reviewing Top Glove's submission based on the company's claim that it has remediated the 11 International Labour Organization's (ILO) forced labour indicators.

"The company's resolution of the 11 ILO forced labour indicators had earlier been verified by independent international UK consultant, Impactt Ltd, in its report dated April 22, 2021.

"The company estimates the impact following the WRO/finding on sales from Malaysia to be minimal until upliftment of the WRO/finding," it said.

Earlier, US CBP has seized a shipment of 3.97 million nitrile disposable gloves from Top Glove estimated to be worth US$518,000 (RM2.13million), on indications they were made by forced labour.

The regulator on March 29 issued a forced labour finding based on evidence of multiple forced labour indicators in the world's largest medical glove maker's production process.

It had initially banned products from two of Top Glove's subsidiaries last July, but extended the ban to all of the manufacturer's products made in Malaysia in March.

The indicators included debt bondage, excessive overtime, abusive working and living conditions, and retention of identity documents.

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