KUALA LUMPUR – United States tyre manufacturer Goodyear Tire & Rubber Co is facing accusations of unpaid wages, unlawful overtime and threats to foreign workers at its Malaysian factory, reported Reuters, citing court documents and employee complaints.
Six current and former foreign workers, as well as Labour Department officials, told the news outlet that the company has made wrongful salary deductions, required excessive hours and denied workers full access to their passports.
Goodyear was last year fined for overworking and underpaying foreign employees, confirmed the Labour Department.
The company was imposed a RM41,500 penalty over nine violations of labour laws with regard to excessive hours and wrongful salary deductions.
Its operations in Malaysia are jointly owned by Permodalan Nasional Bhd.
The allegations reported by Reuters first surfaced when 185 foreign employees filed three complaints against the firm’s Malaysian operations at the industrial court – two in 2019 and one last year – over non-compliance with a collective labour agreement.
Among the allegations are denying foreign workers their shift allowances, annual bonuses and pay increases. The benefits are available to Malaysian staff, who are represented by a labour union.
The court ruled in favour of the foreign workers in two cases last year, saying they are entitled to the same benefits as their local counterparts, and ordered Goodyear to furnish their back wages and comply with the collective agreement.
Representing the foreign workers is lawyer Chandra Segaran Rajandran, who was quoted as saying the employees, from Nepal, Myanmar and India, are owed RM5 million in unpaid wages.
“They are put in a situation where they are being denied their full rights as what is provided for (by law),” he said, adding this amounts to “discrimination”.
Goodyear challenged the ruling in both cases at the high court. The appeal decision is expected on July 26. The verdict for the third case is due in a few weeks.
According to court documents, Goodyear Malaysia said foreign workers are not entitled to the benefits of the collective agreement as they are not union members.
However, a union representative told the court that foreign workers are entitled to the said benefits, even if they are not members.
Goodyear told Reuters that it has strong policies and practices relating to and protecting human rights.
“We take seriously any allegation of improper behaviour relating to our associates, operations and supply chain,” said a representative in an email response.
Some Malaysian companies have come under fire in recent years, with investigations mooted by the Human Resources Ministry and US authorities pointing to labour abuse.
Factories in the country rely on millions of foreign workers to manufacture rubber gloves, palm oil and more. – The Vibes, May 31, 2021
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