Glove manufacturer YTY has raised alarms over forced-labour practices that could be of a “systemic nature” at one of its ceramic-mould suppliers based in Malaysia. The company recently engaged in preliminary discussions with the supplier following allegations of possible labour rights breaches which had come to light even though previous compliance documents had been signed.
A note on its website expressed disappointment in the findings but reiterated the commitment of YTY Group to working with the supplier to understand the situation and bring about corrective action.
Rather than terminate the supplier relationship immediately, YTY would prefer to engage in responsible actions that encourage supplier compliance at the detriment of affected workers. Abrogation of contracts would hurt workers with already precarious situations through unpaid wages and loss of livelihood.
Conversely, the group has stated that if the supplier takes little or no action towards remedy?ng the concerns in question, it will terminate its business relationship.
According to migrant worker rights activist Andy Hall, nearly 200 Bangladeshi workers employed with the same supplier had not received salaries for three months. Many had also been denied overtime payments for five months and were forced to reside in substandard housing.
From 2023 onwards, Hall stated, inconsistent payment of wages has led to debt bondage after excessive recruitment fees were paid, which were RM17,000 by to worker, to secure jobs within Malaysia. There are also indications that many workers faced passport confiscation, thus encroaching on serious violations under the International Labour Organization’s (ILO) indicators of forced labour.
This month, around 130 workers filed a formal grievance to the local labour department, but it remains unsolved. Improvements have been registered since the situation has been brought into the public domain, but workers continue to be in debt bondage and still do not live in humane conditions.
Hall asked the supplier to immediately reimburse workers for their recruitment fees and return their passports. If the supplier is not financially able to do so, the suggestion is for the supplier’s international and local clients to ensure the full compensation promptly.
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