Tuesday, May 18, 2021

Forced Labour - Another 1MDB like response by Malaysia? Saravanan(Minister) slow to investigate, confirm, explain...or stop US 'fake news'?

1MDB response by Malaysia seems to emerge again with regard to the Forced Labour FINDING in Top Glove by US. When that issue of kleptocracy, corruption, etc first emerged, the Malaysian government 'denied' or ignored it despite the fact that action was being taken in many other countries.

Now, we have the allegation of 'FORCED LABOUR' in Malaysian factories. In July 2020, the US Customs and Border Protection was at the stage of suspicion...'reasonably but not conclusively...', but in March 2021, it became a finding of fact...

In July 2020, the U.S. Customs and Border Protection was only at the stage of being ‘‘reasonably but not conclusively indicates that merchandise was produced by 'forced labour'  -hence only a withhold release order 

But in March 2021, the U.S. Customs and Border Protection made a finding/determination  that certain articles ....that are mined, produced, or manufactured in whole or in part with the use of convict, forced, or indentured labor by Top Glove Corporation Bhd in Malaysia, - and, after this it was 'seize and forfeit...

What is shocking is what has been the Malaysian response to date .... The allegations are about 'forced labour' - but what are the specific allegations? Are they violations of Malaysian law? What has the Malaysian government done about this 'FAKE news' or "TRUE allegations'?

Investigations by the Labour Department on rubber glove manufacturer, Top Glove Corp Bhd, relating to claims that the company used forced labour, was found to be baseless, said Human Resource Minister Datuk Seri M. Saravanan.

...before the detention order on Top Glove was announced, an operation by task forces for the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007 and the Recovery Movement Control Order (MCO) was conducted at Top Glove’s headquarters in Meru, Klang on July 13.

He said the investigations found that the company had violated the standard operating procedures of the MCO, namely not complying to social distancing in the work place and provision of cramped housing quarters, wherein the company was compounded by the Ministry of Housing and Local Government.

“However, there was no offence, and no elements of forced labour were detected,“ he said.- 21/7/2020, Sun Daily 

Well, now products made by Malaysian factories of the SAME company are being seized...after the Finding in March 2021... Both Azmin Ali (Minister of International Trade and Industry (MITI)] and Saravanan [HR Minister] in March and April 2021 respectively seem to say that they are still waiting for the 'full report'' ...

Ministry of International Trade and Industry (MITI) will look at the full report on the allegation by the United States that Top Glove Corp Bhd had used forced labour in its disposable glove production in Malaysia. Datuk Seri Mohamed Azmin Ali (30/3/2021)

12/4/2021 - It is still too early for the government to come to a conclusion on the allegations against Top Glove Corp Bhd, which has been slapped with forced labour claims by a United States (US) authority. Human Resources Minister Datuk Seri M. Saravanan said the ministry was still waiting for a full report on the allegations made against Top Glove, which is the world's largest glove manufacturer.However, he reiterated that the ministry would not compromise with any quarters and that action would be taken against the company should the allegation of abuse against its workers was found to be true.

Is the US lying about 'FORCED LABOUR' in Malaysia's Top Glove factory? That is the question that is baffling Malaysians - and the Malaysian Government, or the Human Resources Minister, Saravanan or the Prime Minister is not saying anything - is this a FALSE Allegation - or, is it TRUE.

Well, we do not know the details of the allegations of FORCED LABOUR - but whilst the government is basically 'procrastinating' or denying - it seems that TOP GLOVE is doing the needful to address these 'forced labour allegations' and end forced labour practices in their factory...So, why is the Malaysian government ADMITTING the existence of 'forced labour', and thereafter doing the needful, including even enacting needed laws, to ensure that Malaysia also is against FORCED LABOUR???

What are the indicators of FORCED LABOUR?

The 11 ILO indicators are:

  1. abuse of vulnerability
  2. retention of identity documents
  3. restriction of movement
  4. excessive overtime
  5. abusive working and living conditions
  6. deception
  7. isolation
  8. debt bondage
  9. withholding of wages
  10. physical and sexual violence and
  11. intimidation

Does Malaysia have labour laws that deal with these different 11 indicators? Is it in compliance with at the very least minimum international standards? We already know that Malaysian law and labour standards need SERIOUS OVERHAUL - this is an old story...

Remember how Malaysia was embarased in 2015 when our labour laws and standards were found to be seriously lacking - we had to do the needed legal reform before Malaysia could be part of the Trans-Pacific Partnership Agreement(TPPA) because some countries ARE Barred from entering into certain countries which do not respect and protect worker rights and human rights. - see Malaysia's Embarassingly Poor Worker and Trade Union Rights Reality - Malaysia – United States Labour Consistency Plan?

Note that Agreement spelled out what Malaysia must do with regard to preventing 'Forced Labour' 

...B.  Forced Labour

Protections against the withholding of passports

1. Malaysia shall:

(a) amend the implementing regulations to the Passport Act 1966 (Act 150) to  reinforce that retaining a worker’s passport by his or her employer is illegal.  Such regulations shall include requiring that foreign workers are fully informed of their right to retain their own passports and informing workers that they retain the right to access their passports at any time, without delay or approval of any other individual and without consequence  to  their  status  and  relationship  with  their  employer  or  recruitment  agency;

(b) amend the implementing regulations  to Act 150 to require that private employers that utilize foreign workers  in their operations  (either through a direct employment  relationship or through an   employment agency) provide to each foreign worker a notice informing workers of their right to retain their passport and information on how to report violations of this right.  Private employers with more than 10 foreign workers and recruitment agencies also shall post a notice to this effect;

(c) amend the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446) so that it covers all sectors (beyond only plantations) and to require that private employers or recruitment agencies that provide housing to foreign workers provide secure facilities (for example,  personal lockers) for the storage and safekeeping of  workers’  passports  and  other  valuables.    These facilities must  allow  workers  to  access their passports at any time and without prior authorization; and

(d) effectively  enforce  relevant  laws  and  regulations  to  investigate  and  prosecute  employers nd recruitment agencies that retain employee passports.

Foreign worker recruitment practices, contracts and fees

2.  Malaysia shall:

(a) ensure that all entities that recruit foreign workers, whether a recruitment agency or  a  direct  employer,  are  covered  by  the  sections  of  the  Private  Employment  Agencies Act of  1981 (Act 246), including provisions regarding limitations on the recruitment fees charged to a foreign worker;

(b) amend relevant laws and regulations to provide that any government levies charged for employment  of foreign workers are the obligation of the employer,  rather than the foreign worker;

 (c) amend  its  laws  and  regulations  to  provide  that  large-scale,  repeated  or  egregious  violations of labour  law are punishable by a denial of future quota requests of the offending  employer  or  by a  revocation  of  the  license  of  offending  recruitment  agency;

(d) ensure  that any Memorandum  of  Understanding  regarding  the recruitment  of  foreign  workers  between  Malaysia  and  a government  of  a country  that  provides such workers will require that recruitment agencies and employers provide foreign workers  a  valid  written  contract  in  their  own  language,  including  their  terms  of  work, prior to their entrance into Malaysia; and

(e) amend  relevant sections of Act 265 to prohibit contract substitution.

Trafficking and forced labour victim protection services

3.  Malaysia shall:

(a) issue necessary regulations to the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007 (Act 670) to allow victims of trafficking to move freely to and  from  shelters;  provide  victims  of  trafficking  access  to  legal  counsel  of  their  choice;  allow victims of trafficking to work and find new employment under clearly established procedures;  enable non-governmental organizations to own and operate shelters for trafficking victims; and

(b) waive  any  fees  associated  with  the  required  pass  provided  through  the  Labour Department for foreign workers  who are involved in an investigation of violations of labour  law (other than forced labour  covered above) to remain in Malaysia and  seek alternative employment.  

Foreign worker housing and freedom of movement

4. Malaysia shall:

(a) amend the implementing regulations to Act 446 to require  that private employers or  recruitment  agencies  that  provide  housing  for  foreign  workers  provide notice informing workers, in a language that they understand, of their right to freedom of movement under Malaysian law  and information on how to report violations of this right.    Private  employers  with  more  than  10  foreign  workers  and  recruitment  agencies  shall  also  be  required  to  post  the  notice  on  their  premises  visible  to  workers; and

(b) amend the implementing  regulations to Act 446 to require that private employers or  recruitment  agencies,  which  provide  housing  for  foreign  workers  provide  a notice, in a language the workers understand, informing  those workers of their right to acceptable housing conditions under this Act and information on how to report violations of their right to acceptable housing conditions.   Private employers with more  than  10  foreign  workers  and  recruitment  agencies  shall  also  be  required  to post the notice on their premises visible to workers.

C. Child Labour

The then BN government, failed to do the needed amendments after US dropped out of the TPPA ...We hoped that the Pakatan Harapan Plus government would have done the needful ...but they failed to do it speedily (i.e. if they planned to really do so...we will never know).

Then, now we have the PN-BN plus government - and looking at how Minister Saravanan and Minister Azmin Ali ...is responding, it looks like this government also may not bring about the much needed labour reforms...

Interestingly, the Malaysian government response (or initial response) seems to be 'pro-business/employer' - They meet with the owners/employers - but interestingly the worker representation and trade unions are left out....Did MTUC come out on the Top Glove issue? ...well they seem to be 'silent' or maybe they are not getting needed media coverage...

Worker rights is a HUMAN RIGHT - should SUHAKAM do an inquiry and make needed legal and policy reforms?

Do we need a ROYAL COMMISSION OF INQUIRY? Mmmm ...anyway, even if there is a RCI, the Malaysian government keeps 'secret' the findings of the RCI --- what happened to disclosing the Wang Kelian RCI Report and Findings? 

The government need to look at what TOP GLOVE is doing 'voluntarily' to eliminate 'forced labour' and make these into laws that need to be complied with by everyone...

PM and government must do needful to STOP embarrassing us in Malaysia - we are embarrassed when the US FINDS a Malaysian Company guilty of 'Forced Labour' - when our own HR Department and government failed to first discover this worker rights violations..

KLEPTOCRACY ...now, are we also going to become world leaders in 'FORCED LABOUR'?

See related post:-

OT - workers in Malaysia have a choice to refuse? Reduce draconian OT limit of 104 hours/month to 50 hr/mth

 


DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection [CBP Dec. 21–08]  

Notice of Finding That Certain Disposable Gloves Produced in Malaysia With the Use of Convict, Forced or Indentured Labor Are Being, or Are Likely To Be, Imported Into the United States AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.  

ACTION: General notice of forced labor finding. SUMMARY: This document notifies the public that U.S. Customs and Border Protection (CBP), with the approval of the Secretary of Homeland Security, has determined that certain disposable gloves, have been mined, produced, or manufactured in Malaysia by Top Glove Corporation Bhd with the use of convict, forced or indentured labor, and are being, or are likely to be, imported into the United States. 

DATES: This Finding applies to any merchandise described in Section II of this Notice that is imported on or after March 29, 2021. It also applies to merchandise which has already been imported and has not been released from CBP custody before March 29, 2021. 

FOR FURTHER INFORMATION CONTACT: Juan M. Estrella, Chief, Operations Branch, Forced Labor Division, Trade Remedy Law Enforcement Directorate, Office of Trade, (202) 325–6087 or forcedlabor@cbp.dhs.gov.  

SUPPLEMENTARY INFORMATION: I. Background Pursuant to section 307 of the Tariff Act of 1930, as amended (19 U.S.C. 1307), ‘‘[a]ll goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in any foreign country by convict labor or/and forced labor or/and indentured labor under penal sanctions shall not be entitled to entry at any of the ports of the United States, and the importation thereof is hereby prohibited.’’ 

Under this section, ‘‘forced labor’’ includes ‘‘all work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily’’ and includes forced or indentured child labor. The CBP regulations promulgated under the authority of 19 U.S.C. 1307 are found at sections 12.42 through 12.45 of title 19, Code of Federal Regulations (CFR) (19 CFR 12.42–12.45).  

Among other things, these regulations allow any person outside of CBP to communicate his belief that a certain ‘‘class of merchandise . . . is being, or is likely to be, imported into the United States [in violation of 19 U.S.C. 1307].’’ 19 CFR 12.42(a), (b). Upon receiving such information, the Commissioner ‘‘will cause such investigation to be made as appears to be warranted by the circumstances . . . .’’ 19 CFR 12.42(d). CBP also has the authority to self- initiate an investigation. 19 CFR 12.42(a). 

If the Commissioner of CBP finds that the information available ‘‘reasonably but not conclusively indicates that merchandise within the purview of section 307 is being, or is likely to be, imported,’’ the Commissioner will order port directors to ‘‘withhold release of any such merchandise pending [further] instructions.’’ 19 CFR 12.42(e). 

After issuance of such a withhold release order, the covered merchandise will be detained by CBP for an admissibility determination, and will be excluded unless the importer demonstrates that the merchandise was not made using labor in violation of 19 U.S.C. 1307. 19 CFR 12.43–12.44. The importer may also export the merchandise. 

19 CFR 12.44(a). These regulations also set forth the procedure for the Commissioner of CBP to issue a Finding when it is determined that the merchandise is subject to the provisions of 19 U.S.C. 1307. Pursuant to 

19 CFR 12.42(f), if the Commissioner of CBP determines that merchandise within the purview of 19 U.S.C. 1307 is being, or is likely to be, imported into the United States, the Commissioner of CBP will, with the approval of the Secretary of the Department of Homeland Security (DHS), publish a Finding to that effect in the Customs Bulletin and in the Federal Register.1 

Under the authority of 19 CFR 12.44(b), CBP may seize and forfeit imported merchandise covered by a Finding. On July 15, 2020, CBP issued a withhold release order on ‘‘disposable gloves’’ reasonably indicated to be manufactured by forced labor in Malaysia by Top Glove Corporation Bhd. Through its investigation, CBP has determined that there is sufficient information to support a Finding that Top Glove Corporation Bhd is manufacturing disposable gloves with forced labor and that such merchandise is likely being imported into the United States.

 II. Finding 

 A. General Pursuant to 19 U.S.C. 1307 and 19 CFR 12.42(f), it is hereby determined that certain articles described in paragraph II.B., that are mined, produced, or manufactured in whole or in part with the use of convict, forced, or indentured labor by Top Glove Corporation Bhd in Malaysia, are being, or are likely to be, imported into the United States. Based upon this determination, the port director may seize the covered merchandise for violation of 19 U.S.C. 1307 and commence forfeiture proceedings pursuant to 19 CFR part 162, subpart E, unless the importer establishes by satisfactory evidence that the merchandise was not produced in any part with the use of prohibited labor specified in this Finding.  

B. Articles and Entity Covered by This Finding This Finding covers disposable gloves classified under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 3926.20.1020, 4015.11.0150, 4015.19.0510, 4015.19.0550, 4015.19.1010, 4015.19.1050, and 4015.19.5000, which are mined, produced or manufactured wholly or in part by Top Glove Corporation Bhd in Malaysia. The Secretary of Homeland Security has reviewed and approved this Finding. 

 Dated: March 23, 2021. Brenda B. Smith, Executive Assistant Commissioner, Office of Trade. [FR Doc. 2021–06393 Filed 3–26–21; 8:45 a

SOURCE:-  https://www.govinfo.gov/content/pkg/FR-2021-03-29/pdf/2021-06393.pdf?utm_source=search.usa.gov&utm_medium=search.usa.gov&utm_term=undefined&utm_content=undefined&utm_campaign=(not%20set)&gclid=undefined&dclid=undefined&GAID=999289189.1620996938

 

 

Forced labour claims against Top Glove baseless: Saravanan

21 Jul 2020 / 22:20 H.

PUTRAJAYA: Investigations by the Labour Department on rubber glove manufacturer, Top Glove Corp Bhd, relating to claims that the company used forced labour, was found to be baseless, said Human Resource Minister Datuk Seri M. Saravanan.

Commenting on the detention order on Top Glove products by the US Customs and Border Protection (CBP), Saravanan said it could affect the country’s credibility and image at the international level, as well as influenced foreign investors’ confidence in the country following the baseless allegation.

“It is unfair and they should ask us for investigation, wait for the report, and then they should decide otherwise,“ he told reporters after a meeting with representatives from Top Glove and the Malaysian Rubber Glove Manufacturers Association at the Human Resources Ministry here, today.

It was reported that the detention order by CBP on rubber glove exports to the US beginning July 15 was issued to two subsidiaries of Top Glove, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd due to elements of forced labour.

Stressing that the government would not compromise in the forced labour issue, Saravanan said he will visit Top Glove as well as invite representatives from the US to see for themselves to prove that the claims were baseless.

“Top Glove will be my top priority as they are being blamed or accused for no reason, so I will visit (Top Glove) and send invitation to them (US representatives) through Wisma Putra,“ he added.

According to Saravanan, before the detention order on Top Glove was announced, an operation by task forces for the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007 and the Recovery Movement Control Order (MCO) was conducted at Top Glove’s headquarters in Meru, Klang on July 13.

He said the investigations found that the company had violated the standard operating procedures of the MCO, namely not complying to social distancing in the work place and provision of cramped housing quarters, wherein the company was compounded by the Ministry of Housing and Local Government.

“However, there was no offence, and no elements of forced labour were detected,“ he said.

Meanwhile, Top Glove managing director Datuk Lee Kim Meow said the company would collate the evidence and present them to the CBP this week to deny the claims and was confident the issue would be resolved as early as next month.

He said the action by the CBP had caused its sales to drop by about 12.5 per cent.

He said the rubber gloves that could not be exported to the US would be exported to other countries including Canada, Australia and Europe. - Bernama - 21/7/2020, The Sun Daily

MITI to look into forced labour allegation against Top Glove

MITI to look into forced labour allegation against Top Glove

KUALA LUMPUR (March 30): The Ministry of International Trade and Industry (MITI) will look at the full report on the allegation by the United States that Top Glove Corp Bhd had used forced labour in its disposable glove production in Malaysia.

Its minister Datuk Seri Mohamed Azmin Ali said MITI meanwhile, will continue to facilitate the industry to understand the requirement of Malaysia's export market and to resolve any trade and investment related matters.

"We have not conducted any investigation yet and certainly we need to look at the full report. The ministry is looking to the details and certainly we will facilitate our industries.... 30/3/2021, Edge Markets

Import ban on Top Glove products tarnishes country's image, says Saravanan


Import ban on Top Glove products tarnishes country's image, says Saravanan
-A +A

BANTING (March 30): The country’s image has been tarnished, following the issue of Top Glove facing the latest import ban by the US Department of Customs and Border Protection (US CBP) on all its disposable gloves, said the Human Resources Minister Datuk Seri M. Saravanan.

This follows US CBP, on Monday, directing personnel at its all ports of entry to seize disposable gloves produced by Top Glove because the company is believed to be using forced labour.

“If they are innocent, they should not be punished. Top Glove still has room to appeal to US CBP.

“I will not compromise with any party that abuses the workers,” he told the media after attending a meeting with the Sime Darby Plantation Bhd workers here today.

He said that... 30/3/2021, The Edge Markets

Human Resources ministry still waiting for report, too early to decide on Top Glove

PETALING JAYA: It is still too early for the government to come to a conclusion on the allegations against Top Glove Corp Bhd, which has been slapped with forced labour claims by a United States (US) authority.

Human Resources Minister Datuk Seri M. Saravanan said the ministry was still waiting for a full report on the allegations made against Top Glove, which is the world's largest glove manufacturer.

However, he reiterated that the ministry would not compromise with any quarters and that action would be taken against the company should the allegation of abuse against its workers was found to be true.

"It is a bit too early (for the ministry to decide if there was basis in the allegations against the company). I was told that the complainant was a non-governmental organisation, who came to this country using a tourist visa and did some reporting.

"Hence, I need to check before the ministry can come into any conclusion," he said when met at a Hi-Tea programme at Gurdwara Sahib here today, which was held in conjunction with the Vaisakhi celebration tomorrow.

Saravanan was asked on updates over the issue of Top Glove facing the latest import ban by the US Customs and Border Protection (CBP) on all its disposable gloves.

The CBP had directed staff at all its ports of entry to seize disposable gloves produced by Top Glove because the company is believed to be using forced labour.

"As the minister for the Human Resources Ministry, I will make sure the welfare of workers, irrespective of locals or foreigners are well taken of. At the same time, Top Glove is also one of the major companies that has brought revenue for the country.

"Having said that, I will not compromise (with anyone) when it comes to the welfare of employees," he said. - NST, 12/4/2021

US CBP seizes gloves en route to Kansas City under Top Glove forced labour findings

US CBP seizes gloves en route to Kansas City under Top Glove forced labour findings

KUALA LUMPUR (May 13): US Customs and Border Protection (CBP) officers at the Port of Kansas City, Missouri have seized a shipment of 4.68 million disposable latex gloves made by a subsidiary of Top Glove Corp Bhd.

In a statement, the CBP said the estimated value of the Kansas City-bound shipment was US$690,000 (about RM2.85 million).

“Considering that this seizure took place in the heartland of America, it goes to show that imports produced by forced labour affect everyone nationwide,” said Port of Kansas City director Steven Ellis. “The CBP will not tolerate forced labour in US supply chains.”

The shipment was seized following an inspection revealing that the gloves were manufactured by an unnamed Top Glove subsidiary. This was the second time this month that the US authorities confiscated the group's disposable gloves over forced labour concerns.

On May 5, CBP personnel in Cleveland impounded a shipment of 3.97 million disposable nitrile gloves worth an estimated US$518,000 after checks revealed that the goods were also made by the group.

The agency has instructed all disposable gloves made by Top Glove to be seized from March 29 after it issued forced labour findings based on evidence of multiple forced labour indicators in the group's production process. 

These included debt bondage, excessive overtime, abusive working and living conditions, and retention of identity documents.

However, last month, the group said it had resolved all 11 International Labour Organization (ILO) indicators of forced labour, and stated its assurance to stakeholders of continued efforts to improve the welfare of its employees.

The 11 ILO indicators are:

  1. abuse of vulnerability
  2. retention of identity documents
  3. restriction of movement
  4. excessive overtime
  5. abusive working and living conditions
  6. deception
  7. isolation
  8. debt bondage
  9. withholding of wages
  10. physical and sexual violence and
  11. intimidation

On April 30, Top Glove said the CBP was reviewing its submissions of clarification of the resolution of the 11 indicators. - Edge Markets, 13/5/2021

After second US glove shipment seizure this month, Top Glove reaffirms commitment to resolving WRO


After second US glove shipment seizure this month, Top Glove reaffirms commitment to resolving WRO
-A +A

KUALA LUMPUR (May 13): After a second shipment of disposable gloves was seized by the US Customs and Border Protection (CBP) yesterday, Top Glove Corp Bhd reiterated that it had submitted its remediation of all 11 forced labour indicators to the authority.

The remediation was verified by independent international consultant Impactt Ltd in an April 22 report, said the glove maker in a statement today.

The group said it is committed to working closely with the US CBP to resolve the withhold release order (WRO), which is premised on forced labour findings.

To recap, customs officials seized a shipment of 4.68 million disposable latex gloves from the Port of Kansas City, Missouri after discovering that they were made by a subsidiary of Top Glove.

In a statement, the CBP said the estimated value of the Kansas City-bound shipment was US$690,000 (about RM2.85 million).

The goods were seized in accordance with a March 29 order to impound all gloves manufactured by Top Glove and its subsidiaries after the US agency issued forced labour findings based on evidence of multiple forced labour indicators in the group's production process. - Edge Market, 13/5/2021

 

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