Top Glove to refund RM160 mil to foreign workers, says report

Top Glove to refund RM160 mil to foreign workers, says report

The Los Angeles Times said the sum would be three-and-a-half times more than what the company had initially promised.

Top Glove, the world’s largest glove manufacturer, is fighting a US import ban on its products. (Bernama pic)
PETALING JAYA:
Top Glove Corp Bhd is set to refund more than RM160 million in backdated recruitment fees to its foreign workers, according to a US news report.

The Los Angeles Times reported yesterday that Top Glove, the world’s largest glove manufacturer, recently distributed letters to employees stating it will pay workers from Nepal about US$1,500 (RM6,247) and workers from Bangladesh about US$4,800 (RM19,989) to cover fees they paid to recruitment agencies.

The newspaper said its report was based on letters it had seen.

The payments to the company’s 10,000 foreign workers would work out to a total of roughly US$40 million (RM166.58 million), about three-and-a-half times more than what the company initially promised, the report said.

In August, Top Glove said it would refund up to RM53 million (US$12.73 million) in backdated recruitment fees to its foreign workers in the hope that a US import ban on its medical gloves will be lifted.

The company made an initial payment of RM4.4 million (US$1.06 million) in August.

Foreign workers are often forced to pay high recruitment fees to foreign employment agents to secure jobs in Malaysia, a debt they then work to pay off throughout the duration of their contracts.

FMT has reached out to Top Glove for comment.

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