BlackRock raps Top Glove board over worker safety

BLACKROCK has criticised Top Glove's board for failing to see to the health and safety of workers living in the glovemaker's dormitories. The asset manager voted against seven of the 12 resolutions tabled by Top Glove at its annual general meeting (AGM) convened on Wednesday, according to a Vote Bulletin published late Wednesday.

BlackRock voted against the re-election of six independent non-executive directors (INED). It also voted against a separate resolution for senior independent director Lim Han Boon to continue in office as an INED.

BlackRock also said it intends to hold other incumbent directors who were not on ballot at the AGM accountable by voting against their re-election at future shareholder meetings.

"Given Top Glove's role as a leading personal protective equipment (PPE) manufacturer, we view the board's ineffectiveness in Covid-19 mitigation and inadequate oversight of worker health and safety issues as especially egregious with potentially serious implications for its reputation as a supplier of such equipment to hospitals around the world," said BlackRock.

In a statement, BlackRock highlighted that more than 5,000 Top Glove workers - or a quarter of its workforce - were infected with Covid-19 last year. A whistleblower who shared pictures of overcrowding and a lack of social distancing among workers was dismissed.

Although BlackRock acknowledged that Top Glove has improved workers' conditions and changed its whistleblowing processes, BlackRock remained concerned about the company's approach.

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Top Glove is still on the United Nations Global Compact (UNGC) watchlist and faces pending investigations in both Malaysia and the United States.

Norges Bank Investment Management, another institutional shareholder of Top Glove, also voted against the same resolutions for the appointments of the directors.

All the resolutions tabled at Top Glove's AGM were, however, passed. The percentage of vote against the directors' appointments ranged from 13.5 per cent to 27.7 per cent.

As at 3.17pm, shares in Top Glove were up 0.5 per cent for the day at S$1.91.