gloveharicut

Top Glove : Worker exploitation claims in British TV report was “highly inaccurate”

gloveharicut
Publish date: Thu, 18 Jun 2020, 09:16 PM
Does Glove need a haircut?

British Channel 4 news video was "highly inaccurate"

I am reproducing FMT news to my blog.

 

Channel 4 also alleged some workers at Top Glove’s factories had to clock up to 111 hours in overtime per month as the company tried to meet increased production targets during the Covid-19 pandemic, which has seen a surge in demand for rubber gloves and surgical gloves.

 

 

https://www.freemalaysiatoday.com/category/nation/2020/06/18/top-glove-denies-worker-exploitation-claims-in-british-tv-report/

Top Glove denies worker exploitation claims in British TV report

PETALING JAYA: Top Glove today said a Channel 4 News video that purportedly uncovered migrant worker exploitation and slack social distancing measures was “highly inaccurate”.

The investigation by the UK-based channel was aired on Tuesday and allegedly revealed poor living conditions in cramped hostels, with up to 24 workers per room.

Channel 4 News also accused Top Glove, the world’s largest rubber glove manufacturer, of making illegal deductions from workers’ salaries and failing to properly enforce social distancing at its factories, hostels and transport facilities – with workers fearful of catching Covid-19 as a result.

“Every employee’s safety, health and wellbeing has always been of utmost importance to Top Glove, all the more during this Covid-19 era,” said William Yap, Top Glove’s general manager of human resources.

“We are committed to adhering to internationally recognised standards in our social compliance practices. Since January 2019, we have attended to more than 100 international external audits at Top Glove’s factories.

“The positive outcomes of audits, such as those conducted by SMETA and the Business Social Compliance Initiative (BSCI), reflect excellent progress in our social compliance, where concentrated efforts were made to enhance our labour practices comprehensively to meet stringent international requirements,” he added in a statement.

In an e-mail to FMT, Top Glove also attached a copy of a report by the health ministry, dated May 5, which stated that the company’s Factory 9 in Klang followed guidelines set out in the Prevention and Control of Infectious Diseases Act 1988 in a manner that was “very satisfactory”.

The company said other relevant authorities, such as the international trade and investment ministry (Miti) and the Department of Labour had also conducted visits and spot checks at Top Glove’s factories and workers’ accommodation to confirm “optimum compliance” with standard operating procedures.

Channel 4 also alleged some workers at Top Glove’s factories had to clock up to 111 hours in overtime per month as the company tried to meet increased production targets during the Covid-19 pandemic, which has seen a surge in demand for rubber gloves and surgical gloves.

Top Glove last week announced record profits of RM348 million for the third quarter ending May 31, 2020, a 365% year-on-year increase and a 202% quarter-on-quarter rise.

Top Glove, which has 45 factories, has 19,000 employees and produces 78.7 billion gloves each year.

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Be the first to like this. Showing 7 of 7 comments

CCCL

They overbought the gloves at high price during the initial chaotic situation. Since the usage have came down, they find some excuses to cancel or defer orders.

2020-06-18 22:37

bullpiano

This is how UK & US take advantage from Asians...f them

2020-06-18 22:43

PelhamBlackFund

Glove stocks continue to collapse after overheating and over optimism.

Topglove: Investors begin to question analysts FY21 earnings calculation for Topglove and drastic normalization in earnings after FY21.

Supermax: Investors begin to understand that higher OBM revenue does not translate to higher profit as cost is not well maintain.



The only sustainable glove stock is Hartalega.

- 51% of Hartalega's revenue are from US and medical healthcare. The worst Covid hit region and growing is US. No other glove companies have larger presence in the US.

- Many investors begin to understand that Topglove's ASP rise to US37/'000 gloves will be catch up by Hartalega. Hartalega's customers had reach out to Topglove to quote forward sales and noted that Topglove's ASP is higher, giving the chance for Hartalega to raise ASP to US$33 to US$35/'000 pieces.

- Hartalega is the only glove company in the world that able to produce Antimicrobial glove on a big scale. Once approved by FDA, this glove will be sold out for many years until FY2022 and beyond. This gloves are already sold in the Europe.

- World shortage is on nitrile gloves, not latex gloves. Hartalega produces 95% nitrile gloves. No other glove company produce as much nitrile glove as Hartalega.

- Next quarter earnings expected to be RM250mil- RM300mil, Q2'21 is expected to jump to RM500mil and Q3'21 is expected to jump to RM700mil.

- Not like Topglove who will be left with huge idle production lines post Covid, Hartalega will be able to maintain margin efficiency due to not expanding in a big scale in FY21.

- Harta's net profit margin is expected to fetch 35%-39% (vs Topglove of 23%).

- Foreign investment banks have upgraded Hartalega to between RM17 to RM23, while local investment bank lag due to wrong focus on Supermax.

2020-06-18 22:44

CCCL

Developed countries always one step ahead of developing countries. They can change and tighten the rules and regulations. Look at palm oils.

2020-06-18 22:54

EngineeringProfit

same fate.......palm oil and now glove

2020-06-18 23:10

EngineeringProfit

TOP 10 NET MONEY OUTFLOWS• Top Glove Corporation Berhad saw the largest net money outfl ow of –11.62m last week

2020-06-19 06:14

Junichiro

In the 1980s, competitors in western countries claimed that Malaysian-made gloves have minute pin holes. Even the Danish based company in Malaysia, EAC, was not spared. It failed to make money from gloves made here.

2020-06-19 11:31

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