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US Customs Detain Gloves From Malaysian Company Top Glove Because Of Forced Labour Allegations

The company is suspected of using forced labour.


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US Customs Detain Gloves From Malaysian Company Top Glove Because Of Forced Labour Allegations

Are they in trouble?


While many companies and individuals are going through financial woes during the COVID-19, some were prospering. 

Local glove making company Top Glove Corp Bhd and its owner is an example of the latter, as the company saw up to 350 per cent jump in its share prices this year, making its founder Tan Sri Dr Lim Wee Chai a billionaire

But all is not well for the company, as the US Customs and Border Protection ordering detention of gloves produced by the them, causing its shares to drop by 2.57 per cent on 16 July. 

Suspected of using forced labour

Working conditions in these factories are allegedly less than ideal
The US has essentially temporarily stopped the import of gloves by Top Glove as the company is facing allegations of forced labour. 

In June, British based television channel, Channel 4, released a video alleging that the company has been overworking its staff, most of whom are migrants, to meet the demands for gloves. 

The allegations includes only paying the staff minimum wage, forcing them to work overtime beyond the maximum hours allowed by the government and bad living condition that doesn't allow for social distancing.

 
This wasn't the only time Top Glove has been accused of using forced labour. The Guardian wrote about the issue in 2018 implicating two Malaysian glove makers, the other one being the WRP Asia Pacific Sdn Bhd. 

Top Glove had denied the allegations made in 2018, but we haven't found any denial over the latest accusations. 

Hasn't been proven guilty

The company still has to clear its name
Although the detention by the US makes it seem like Top Glove has been found guilty, that is not necessarily the case. 

According to The Edge, WRP was also placed under the same detention order previously but it was lifted after six months when the company managed to clear its name. 

However, we reckon the business of Top Glove will definitely see a hit until the issue is resolved.

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