KUALA LUMPUR – Malaysia’s reputation for forced labour practices hit another low today after Canada terminated its contract to source products from local glove maker Supermax Corporation Bhd.
The country’s public services and procurement department told Reuters that the decision was made following allegations of forced labour within the company, particularly involving its migrant workers.
“Based on the seriousness of the allegations and expected timelines for the final audit results, the Canadian government has decided, and Supermax Healthcare Canada has agreed, to terminate by mutual consent the two existing contracts for the supply of nitrile gloves,” the department said.
The contract termination comes two months after Canada suspended imports of Supermax gloves into the country in November last year, pending an independent audit report.
This follows the United States’ earlier ban on any imports of Supermax products in October, based on reasonable information of forced labour in the firm’s manufacturing operations.
The US Customs and Border Protection had issued a withhold release order on October 21, after identifying 10 of the 11 forced labour indicators during its investigation.
Supermax had said then it was in the process of obtaining more information from the CBP, adding that it had also commissioned an independent consulting firm to conduct an audit into the company.
Earlier this month, the manufacturing firm announced that it has introduced a new migrant worker management policy, in line with the International Labour Organisation's forced labour standards.
In its statement in November, Canada’s public services and procurement department had said that it was aware of the actions taken by the US against Supermax.
It said that based on an initial probe in January 2021, supplier Supermax Healthcare Canada had confirmed that the Malaysian glove maker has been complying with international regulatory and quality standards pertaining to labour and human rights.
As a result, Canada maintained its two contracts with Supermax then.
However, following fresh allegations in October, Canada took the decision to hold all additional deliveries from Supermax, pending full audit, before terminating the contracts today.
Supermax joins a growing list of Malaysian companies to have faced bans by other countries in recent months over forced labour accusations, although some have had theirs lifted after resolving all indicators of forced labour.
Others to have faced similar action include world’s leading glove manufacturer Top Glove, another glove giant WRP Asia Pacific, and palm oil producers Sime Darby Plantation and FGV Holdings Bhd. – The Vibes, January 18, 2022
