Glove maker pledges to end debt bondage among workers

Glove maker pledges to end debt bondage among workers

Supermax Corporation says remediation payments are being extended to include those who had left the company before Oct 1, 2019.

Glove manufacturer Supermax Corporation says it is continuously stepping up efforts to bring its human resource practices in line with ILO standards. (Facebook pic)
PETALING JAYA:
Glove maker Supermax Corporation, which has been hit by a US ban over alleged forced labour, today said it is committed to ending its workers’ debt bondage.

It also said it will expand the scope of remediation payments to include former direct hire and contract workers who had left the company before Oct 1, 2019.

Supermax said the measures were part of a new, comprehensive foreign worker management policy.

“These new initiatives and revised eligibility criteria for remediation have been agreed upon after seeking views and advice from a reputable international consulting firm, as well as through ongoing engagement and dialogue with Andy Hall, a migrant worker rights specialist.

“Supermax has also engaged an international consulting firm to continue to assess and advise on the payout to all our current and former workers as well as to track and locate those workers who have returned to their home countries.

“Supermax is committed to ensuring all former workers receive their remediation payment, including those in the expanded scope,” it said in a statement.

To ensure that all entitled former workers receive their remediation payment, the company said it would publish notices in newspapers in the countries where the workers came from.

It would also conduct outreach activities between now and July to reach out to as many former workers as possible.

Supermax said it would set up a sinking fund to ensure the payments reached the workers. The fund would be reviewed when depleted and governed by an advisory committee consisting of the company’s management, consultants and Hall.

The company has also implemented a one-off RM5,000 ex-gratia payment to all its workers and shall add interest on the amount of past recruitment-related fees and costs paid by workers.

“The company is pleased to announce the completion of these payments to its current active workers on Feb 7. Former workers will also be receiving the same payout starting February until July,” it said.

“To date, Supermax has paid out a total of RM25.67 million in remediation covering past recruitment fees, ex-gratia and other related costs to its workers.”

Supermax said it was continuously making efforts to elevate its human resource practices to be more aligned with International Labour Organization (ILO) standards. It had implemented a ‘Zero Cost Recruitment Policy’ and adopted an equal pay and benefits structure for foreign workers.

The company had also proactively raised its minimum wage to RM1,400 for workers across all categories. The implementation of the policies was progressing in stages and in accordance with Covid-19 SOPs.

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