Malaysian glove manufacturer Hartalega Holdings Bhd. (Hartalega) expects to reimburse up to RM40 million (US$9.54 million) in recruitment fees paid by migrant workers to third-party employment agents during recruitment. Hartalega is working with an external independent party to review the remediation plan, which will begin by the fourth quarter of 2020 and completed over a period of 24 months.
Hartalega CEO Kuan Mun Leong commented on the group’s commitment to enhancing its social compliance policies: “The wellbeing of all our people has always been of utmost priority to Hartalega regardless of nationality of background. We are dedicated to ensuring that we continue to progress in our social compliance journey, to safeguard the welfare of our employees.”
According to Kuan, the issue of recruitment fees paid to third parties by migrant workers is a “complex issue,” requiring multi-stakeholder involvement to reach a solution. The group finally decided to remediate migrant workers who joined Hartalega prior to its zero recruitment cost policy.
Kuan added that a third-party non-profit organisation with a proven track record was hired to conduct interviews with affected workers, which were concluded in June 2020.