Top Glove to pay RM136m in remediation fees to migrant workers

MALAYSIAN glove maker Top Glove will pay a revised sum of RM136 million (S$44.5 million) in remediation fees to migrant workers who joined the company before it implemented a new standard for ethical recruitment in January 2019.

This sum exceeds the RM53 million announced in August, following recommendations by Top Glove's independent consultant after the completion of comprehensive verification work, said the company in a regulatory filing on Tuesday.

Migrant workers will receive remediation payments over the next 10 months, starting this month. Top Glove had made the first two remediation payments in August and September.

Last month, the company submitted an audit report on its labour practices towards its migrant workers to the US Customs and Border Protection (CBP). The report was part of its attempt to resolve a detention order on import, or Withhold Release Order (WRO) issued by the CBP to two Top Glove subsidiaries in July.

The firm said it is following up with the CBP, with a view to an "expeditious resolution" of the matter and revocation of the WRO.

Top Glove shares closed down S$0.08 or 2.8 per cent to S$2.83 on Tuesday.