Its peers also decided to repay recruitment fees. Top Glove told Reuters in a statement that exporters must "follow the best global practices as customer expectations have changed over the years," adding it was "no longer sufficient for businesses to just be cost-efficient". customs revoked the ban after Top Glove made the changes. When the United States last year banned Top Glove Corp, the world's biggest medical glove maker agreed to pay $33 million to workers to reimburse recruitment fees they paid in their home countries – which activists say result in debt bondage. "For ATA, this has meant relooking at some of the practices that have long been a norm, not just in Malaysia but overseas too, for instance, excessive overtime and more engagement between management and rank and file employees," the company said. ATA has acknowledged some violations, made some improvements and said it now complies with all regulations and standards.ĪTA told Reuters in a statement it is stepping up practices for sustainable and equitable growth amid scrutiny of the company and Malaysia. In July, Washington put Malaysia on a list with China and North Korea for limited progress in eliminating labour trafficking, its lowest ranking.ĭyson terminated its contract with parts maker ATA IMS Bhd just months after the Malaysian firm posted record profits. Customs and Border Protection bans after China. The government and labour groups estimate as many as 4 million more undocumented migrants work in the country.įoreign workers are concentrated in manufacturing, agriculture, construction and services.Īs Malaysians shy away from lower-paid, labour-intensive work, the country's electronics and palm oil companies especially are relying on migrants, whose treatment is gaining scrutiny. Malaysia had about 2 million foreign workers in late 2020, 10% of its workforce and double that of 20 years ago, according to the Department of Statistics. The country is the world's second-largest palm oil exporter and its chip-assembly industry accounts for more than a tenth of global chip trade. Malaysia last month launched a National Action Plan on Forced Labour to eliminate such practices by 2030. "The legal framework in Malaysia allows, and indeed sometimes insists on, practices which are on a collision course with the ILO 11 indicators of forced labour," Hurst said. Malaysian law allows more than the widely accepted maximum of 60 hours of work a week and allows work on what are supposed to be rest days. Those conditions are among 11 indicators of forced labour, according to the International Labour Organisation (ILO). Malaysian officials have acknowledged excessive overtime hours, unpaid wages, lack of rest days and unhygienic dormitories. But investors have taken an immediate interest in recent scrutiny of Malaysia, and this could affect future foreign direct investment and supply contracts, analysts say. Other Asian manufacturing hubs, including China and Thailand, face similar accusations of labour abuses. Hurst said queries from global investors about Malaysia's labour practices have increased, including from asset managers and private equity firms. "Malaysia has become the poster child" for forced labour issues, said Rosey Hurst of London-based ethical trade consultancy Impactt. Saravanan acknowledged early this month that "forced labour issues" had "affected foreign investors' confidence towards Malaysia's supply of products." He urged companies to protect workers' rights and welfare. Malaysia's labour department did not respond to questions about changing the country's labour laws, and the trade ministry did not reply to questions on potential investment losses. "If Malaysia does not change and with the global focus on environmental, social and governance practices, businesses could move to other countries." "It is a wakeup call," said Anthony Dass, head of AmBank Research in Kuala Lumpur. Last month, high-tech home-appliance maker Dyson Ltd cut ties with its biggest supplier, a Malaysian firm, over labour conditions. import bans over allegations of forced labour. In the past two years, seven Malaysian firms, including the world's biggest glove maker and palm oil producer, have faced U.S. Southeast Asia's third-biggest economy must reform its labour laws and improve enforcement, while companies should invest to ensure better conditions, said 11 analysts, ratings agencies, researchers, corporate consultants and activists interviewed by Reuters. But as the reliance on foreign labour has increased, so have complaints of abusive working and living conditions for workers, who come mainly from Indonesia, Bangladesh and Nepal.
0 kommentar(er)
