Tuesday, August 11

Top Glove making good progress in engagements with US CBP

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In a statement, the rubber glove maker said it is looking forward to arriving at an agreement on remediation next month, upon which it plans to commence payments immediately. — Bernama photo

KUCHING: Top Glove Corporation Bhd has made good progress in its engagements with the US Customs and Border Protection (CBP) in relation to the latter’s order on disposable gloves manufactured by Top Glove Sdn Bhd and TG Medical Sdn Bhd.

In a statement, the rubber glove maker said it is looking forward to arriving at an agreement on remediation next month, upon which it plans to commence payments immediately.

“This will enable us to continue delivering our gloves especially to first respondents, whose safety and lives are on the line during this critical time,” it said.

In addition, Top Glove has appointed an independent consultant to advise on this matter.

To note, the CBP had placed a detention order on disposable gloves manufactured by two of its subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd on July 15, 2020.

In a filing with Bursa Malaysia mid-July, Top Glove said there was a possibility that the order might be related to foreign labour issues, which the company had already resolved except for an issue regarding retrospective payment of recruitment fees by its workers to agents prior to January 2019 without the company’s knowledge.

However, Top Glove had already borne all recruitment fees since January 2019 when its Zero Recruitment Fee Policy was implemented.

“If we agree to reimburse the recruitment fees of the one-and-a-half years ago (before January 2019), I think the CBP will release our goods.

“It is just a matter of time … we budget about RM20 million to RM50 million to settle this matter with the workers, but mainly with the activists who brought up this case,” said managing director Datuk Lee Kim Meow on the matter.