Malaysia

Goodyear loses case against foreign workers at M’sian plant

Industrial court orders US tyre giant to pay wages owed to 109 employees, comply with collective agreement

Updated 5 years ago · Published on 10 Jun 2021 11:09PM

Goodyear loses case against foreign workers at M’sian plant
US tyre manufacturer Goodyear Tire & Rubber Co is challenging two guilty verdicts, with the appeal decision expected on July 26. – AFP pic, June 10, 2021

KUALA LUMPUR – United States tyre manufacturer Goodyear Tire & Rubber Co has lost a legal dispute involving more than 100 migrant workers at its Malaysian factory.

The industrial court ruling, which was issued yesterday and published today, ordered the company to settle wages owed to 109 employees and comply with a collective agreement, reported Reuters.

Industrial court president Datuk Rasidah Chik said: “It is clear that the complainants have proved that all of them are covered within the scope of the collective agreement, thus they are eligible to receive the benefits provided.”

Lawyer Chandra Segaran Rajandran, representing the workers, was quoted as saying they will look to pursue other benefits in the agreement, including overtime arrears and other allowances.

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. 

Goodyear challenged the verdicts at the high court. The appeal decision is expected on July 26. 

On May 31, it was reported that six current and former foreign workers, as well as Labour Department officials, said the firm made wrongful salary deductions, required excessive hours and denied workers full access to their passports.

Goodyear was fined last year for overworking and underpaying its foreign workforce, 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. – The Vibes, June 10, 2021

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