'Abuse' of foreign workers: Top Glove stock down almost 6%

Shares of Top Glove Corp Bhd took a beating in early trade Monday following news that it was accused of forced labour.

The world’s biggest glove-maker fell 5.93%, or 33 sen to RM5.57 with over 1.2 million shares done.

According to reports, Britain is launching an investigation into medical gloves used by its health service after a Thomson Reuters Foundation expose found stocks from Malaysia could be tainted by the mistreatment of migrant workers at the world's biggest glove-maker.

The report said Top Glove declined to respond directly when asked for comment, it released a statement in which it conceded that excessive daily overtime was a problem.

Top Glove has denied the conditions in its factories were a violation of workers’ rights.

“We assure you that the allegations are entirely unfounded and such allegations tarnish our good name,” it said, emphasising that it complied with “local labour law requirements” and had won a number of human resources awards.

“Top Glove adopts a zero-tolerance policy with any regard to the abuse of human’s rights at all levels,” said the statement.

“In fact our human/labour rights and health initiatives exceed those of the glove industry average.”

WHAT WAS IN THE REUTERS REPORT?

On Thursday, Reuters revealed allegations of horrific labour practices, including excessive and in some cases illegal overtime work, and crippling recruitment debts to secure a job at Top Glove.

Workers do not exercise real control over their passports, thereby affecting their freedom of movement while working for Top Glove, which employs some 11,000 foreign workers, it reports.

There are some one million Bangladeshi workers in Malaysia, according to officials of Bangladesh High Commission in the country. But it is not known how many workers are in Top Glove.

Malaysian Labour rights organisations on Friday called for an urgent investigation into allegations of abusing workers from Bangladesh, Nepal and Myanmar against Top Glove.

Copyright: The Star Online/ Asia News Network