KUALA LUMPUR (March 30): Top Glove Corp Bhd said today that it is unable to, at this juncture, ascertain the quantum of the financial and operational impact arising from the US Customs and Border Protection’s (CBP) directive to its personnel at all US ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove over forced labour allegations.
In a Bursa Malaysia filing, the rubber glove manufacturer said the company wishes to announce that its US counsels are in midst of liaising with representatives of the CBP to obtain more clarity and information on the latest order issued.
"The company wishes to inform all its stakeholders that it will take all necessary steps to address the issue and shall make the necessary announcements as appropriate, when there are further developments in the above matter.
"The company earlier submitted the report prepared by the appointed independent international consultant to the CBP for review.
"In a published statement on March 9, 2021, the said independent international consultant is of the view that further progress had been made with regard to the forced labour indicators and considering Top Glove’s ongoing actions, the findings do not amount to systemic forced labour,” Top Glove claimed.
Yesterday, the CBP said in a statement on its website that it had directed its personnel at all US ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove, after the CBP Office of Trade, in consultation with the secretary of the Treasury, published forced labour allegation findings against Top Glove.
The CBP claimed the findings communicate that it has sufficient information to believe Top Glove uses forced labour in the production of disposable gloves.
"Merchandise covered by the forced labour finding is subject to seizure upon arrival at a US port of entry.
“The finding expands upon a withhold release order (WRO) that the CBP issued in July 2020. That WRO was based on reasonable but not conclusive information that multiple forced labour indicators exist in Top Glove’s production process, including debt bondage, excessive overtime, abusive working and living conditions, and retention of identity documents,” the CBP said.
In a separate statement, Top Glove said the company is reviewing the CBP’s news release and that Top Glove's US counsels are liaising with the CBP’s representatives for sufficient information to meaningfully address the issuance of the recent finding.
It said it is looking forward to receiving pertinent information and working with the CBP to quickly resolve the matter.
"The company had earlier submitted a report dated March 16, 2021 prepared by independent international UK consultant Impactt Ltd to CBP for review, as well as having taken all the necessary measures required by the CBP to ensure all concerns are addressed.
"Since July 2020, Top Glove has engaged Impactt to advise on measures for improving its policies and practices. Impactt issued a statement on March 9, 2021 that their findings confirmed that there is no systemic forced labour across the eleven (11) International Labour Organisation’s Indicators in our direct operations,” Top Glove said.
Top Glove said it understands the concerns of all its stakeholders, including the CBP, to ensure that forced labour is not present in the manufacturing of gloves and personal protective equipment.
According to Top Glove, this is the company’s shared top priority, and it seeks to resolve any ongoing areas of concern immediately.
"Accordingly, the company continues to take extensive remedial actions to further improve our practices and enhance our internal control measures with regard to our labour management.
"We are committed to be the best company that we can, ensuring high quality welfare, health, safe working conditions, and living accommodation for our workforce,” said the world’s largest rubber glove manufacturer by production capacity.
Top Glove has a glove production capacity of about 96 billion pieces a year as at today, and employs some 21,000 employees.
Top Glove's share price settled 27 sen or 5.35% lower at RM4.78 today, with a market capitalisation of about RM37.29 billion, after 68.15 million shares crossed.
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