FMT 28th Mar 2025: Glove maker YTY says Malaysian ceramic mould supplier Mediceram may be involved in forced labour practices
PETALING JAYA: Rubber glove maker YTY Group today said one of its Malaysia-based ceramic mould suppliers may be involved in “systemic” forced labour practices. In a statement on its company website, the group said a preliminary engagement with the said supplier, whose identity is being withheld, after recent allegations came to light, “suggests there have been instances of forced labour lapses”.
Original Source: FMT Reporters – 28 March 2025
YTY Group says it will engage with the company to determine why these lapses occurred, and when and how it will remedy them.
Such incidents occurred despite documentation provided that indicated compliance by the said supplier, the company said.
“While we are disappointed to learn of this, our focus at this time is to constructively engage with the company to determine why these lapses occurred, and what the timeline and path to remediation will be,” it said.
YTY Group said its preferred approach when dealing with such allegations was to engage with the supplier in question as they seek to regain compliance, rather than reactively cancelling current or future purchase contracts.
It said such a measure ensured ongoing employment and continued compensation for the affected employees.
“By the same token, if we do not see positive intent, and dedicated effort on the part of the supplier to address forced labour concerns in a reasonable timeframe, we will not hesitate to conclude our relationship with them,” it said.
Earlier this month, FMT reported migrant worker rights activist Andy Hall as claiming that close to 200 Bangladeshi workers employed by the same ceramic former and specialist gloves mould manufacturer had gone without pay for three months.
Hall had claimed that payment for overtime work for the past five months was outstanding, and the workers were not allowed to keep their passports and were being put up in poor living conditions.
He also said the workers, based in a southern state, claimed that they had been inconsistently paid since 2023 and were in severe debt after paying exorbitant recruitment related costs in the hope of finding jobs in Malaysia in 2017, 2018 and 2023.
About 130 workers from the group were reported to have filed a formal complaint against the company at a labour department in early March, which remains outstanding.
Contacted today, Hall said that while the workers have reported improvements in their working conditions since their complaints came to light, they remained in considerable debt bondage while still living in poor housing conditions.
He also said the majority of the workers had still not got back their passports.
“Debt bondage and confiscation of personal documents are both serious ILO indicators of forced labour or modern slavery,” he said.
“This supplier must, therefore, urgently reimburse the workers their recruitment fees and costs, estimated to be about RM17,000 per person, to take them out of debt, and also return their passports.”
Hall said if the supplier was not in a healthy financial situation, it should request support from its well-known Malaysian and international customers to complete the reimbursement process without further delay.
28th Mar 2025: YTY Gloves Group Statement on Mediceram (Malaysian Ceramics Glove Former Supplier) Forced Labour Allegations
Original Source: HERE – Friday, March 28, 2025
YTY has recently been made aware of allegations of certain instances of systemic forced labor at a supplier of ours, Mediceram Sdn. Bhd. (“Mediceram”), who is a manufacturer of ceramic formers, the type used in the production of single-use gloves.
YTY adopts a strict policy of ensuring that the suppliers we engage with are committed to sound employment practices. These practices include enhancing corporate governance standards, improving workplace safety, implementing a sustainability roadmap, and adopting best-in-class labor practices that include treating employees with fairness, dignity, and respect.
Our relationship with Mediceram is a recently formed one, evidenced by our first commercial orders delivering in December 2024. In 2024, Mediceram comprised less than 0.5% of our total supplier spend, making them a very small part of our supply chain.
Irrespective of the size of the relationship, every supplier is required to conform to YTY’s Supplier Code of Conduct, which highlights in detail elevated standards of professional conduct that are aligned with those set by leading agencies in this space, such as the International Labor Organization (ILO), the United Nations (UN), Worldwide Responsible Accredited Production (WRAP), and SEDEX, to name but a few. These standards include, identify, and extensively focus on forced labor risks.
Prior to our commercial engagement, Mediceram reviewed and voluntarily, but unequivocally, confirmed compliance with YTY’s Supplier Code of Conduct.
As an additional precautionary measure, prior to our commercial engagement, YTY conducted a risk assessment survey, whereby specific corporate policies, practices, and protocols were reviewed to determine Mediceram’s compliance with forced labor standards, and their general conformance to the high standards of professional conduct we expect of suppliers joining our network.
Based on the documentation provided by Mediceram at that time, they were deemed to be in compliance.
In short, a number of credible steps were taken by YTY prior to establishing a commercial relationship to conduct reasonable due diligence and gain comfort with the fact that Mediceram was in compliance with forced labor regulations, and operated with acceptable employment practices.
Furthermore, an additional, and more in-depth, assessment in the form of an on-site audit was planned for later this year as the size and scale of the relationship was expected to grow.
Our preliminary engagement with Mediceram after being made aware of the recent allegations suggests there have been instances of forced labor lapses, despite documentation provided to us at that time which indicated compliance. While we are disappointed to learn of this, our focus at this time is to constructively engage with Mediceram to determine why these lapses occurred, and what the timeline and path to remediation will be.
YTY remains committed to ensuring we maintain long-term supply relations with partners who are fully able to meet the high professional standards we set for them, which are in line with those we set for ourselves. At the same time, in situations like this, our preferred approach remains to engage with the supplier in question as they seek to regain compliance, rather than reactively cancelling current or future purchase contracts. This ensures ongoing employment and continued compensation for the affected employees.
By the same token, if we do not see positive intent, and dedicated effort, on the part of the supplier to address forced labor concerns in a reasonable timeframe, we will not hesitate to conclude our relationship with them.
FMT 8th Mar 2025: Workers at glove mould-making plant in Malaysia, supplying leading domestic and international gloves companies, not paid for 3 months, claims activist (another alleged Malaysian modern slavery related case)
FMT 8th Mar 2025: Workers at glove mould-making plant in Malaysia, supplying leading domestic and international gloves companies, not paid for 3 months, claims activist (another alleged Malaysian modern slavery related case)
Alysha Edward
08 Mar 2025
Andy Hall says about 190 Bangladeshis have been left in debt and struggling to pay off their recruitment fees.The workers are employed by a ceramic former and specialist gloves mould manufacturer (Bernama pic)
PETALING JAYA: Close to 200 Bangladeshi workers employed by a ceramic former and specialist gloves mould manufacturer have gone without pay for three months, a migrant worker rights activist has claimed.
Andy Hall said based on information gathered by a team member helping the workers claim their rights, some 190 of them have not received their basic pay for three months or payment for overtime work for the past five months (nb. length of overtime non payment remains in dispute).
The workers are also in debt after paying exorbitant recruitment fees in the hope of finding jobs in Malaysia, he said.
Hall said the group, based in a southern state, also claimed that they have been inconsistently paid since 2023.
They also alleged that they are being put up in poor living conditions and are not allowed to keep their passports.
FMT is withholding the name of the company pending its response.
“This inconsistent payment of wages has forced the workers to take loans from banks or borrow money from relatives to pay off their recruitment fees, which are about RM25,000.
“Now, they are struggling to settle these bank loans, and the interest is increasing,” Hall said.
However, he said local and international buyers of the company’s moulds that he has engaged with in the past few days have helped to address the situation, and the company has agreed to settle the outstanding salaries by the end of this month.
About 50 workers from the group were reported to have filed a complaint against the company at the labour department yesterday.
Hall said companies supplying moulds to leading local and international glove manufacturers should be investigated if they are employing forced labour.
“Each major glove company uses millions of moulds every year, so there is a need to ask for evidence of the conditions under which these moulds are made,” he said.
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Past Related Malaysian Gloves and Modern Slavery Related Stories
26th Sept 2024: Former Malaysian gloves plant workers sue Kimberly-Clark. They allege abuse at company’s supplier Brightway
20th Sep 2023: CBP modifies withhold release order against Supermax Corporation Bhd. and its subsidiaries
10th August 2022 Reuters: Ex-workers at Malaysian supplier sue Kimberly-Clark, Ansell over alleged labour abuse
10th August 2022: Ansell and Kimberly-Clark Sued in US Federal Court by Trafficking and Forced Labor Victims from Malaysian Glove Company
16th June 2022: My comment on Norway wealth fund putting Malaysia’s Supermax Corp under observation.
The Diplomat, April 4, 2022 – After Pressure, Growing Transparency in Malaysia’s Glove Industry
8th Feb 2022: Malaysia’s scandal-hit Supermax pays $6 million in compensation to migrant workers.
28th Dec 2021 Reuters: Ansell halts orders from Malaysian glove maker Brightway after US ban
The Sydney Morning Herald, December 21, 2021 – Gloves off: Ansell under fire over “modern slavery” at Malaysian supplier
20th Dec 2021 Reuters: U.S. Customs bans fifth Malaysian glove maker Brightway over alleged forced labour
14th September 2021 – The Diplomat: Debt Bondage Payouts Flow to Workers in Malaysia’s Glove Industry
Reuters, September 10, 2021 – U.S. lifts import ban on Malaysia’s Top Glove over forced labour concerns
VOA, July 7, 2021 – Forced Labor Rising in Malaysia’s Rubber Glove Factories, Study Shows
Reuters, May 29, 2021: U.S. probes two Malaysian glove makers over forced labour allegations – report Reuters
20th May 2021 Reuters Insight: ‘Slavery’ found at a Malaysian glove factory. Why didn’t the auditor see it?
The Guardian, March 30, 2021 – US bars rubber gloves from Malaysian from due to ‘evidence of forced labour’
CNN, March 30, 2021 – US will seize all Top Glove imports after finding ‘sufficient evidence’ of forced labour
Reuters, March 30, 2021 – U.S. Customs says forced labour used at Malaysia’s Top Glove, to seize gloves
28th Dec 2020 Malay Mail: Human Resources Ministry – Brightway Holdings, two subsidiaries to face 30 charges over workers accommodation
21st Dec 2020: Malaysia: Hundreds of migrant workers subject to “squalid” onsite living conditions at glove manufacturers owned by Brightway Holdings; Incl. buyer responses
VOA, November 19, 2020 – After US Sanctions, Malaysia Migrant Workers Get Millions in Restitution from Glove Makers
CNN, September 11, 2020 – The world’s top suppliers of disposable gloves are thriving because of the pandemic. Their workers aren’t
VOA, July 17, 2020 – US Bars Imports from Top Rubber Glove Maker Amid COVID Surge
Newsroom, July 28, 2020 – Are your disposable gloves made using forced labour?
Reuters, July 16, 2020 – Amid virus crisis, U.S. bars imports of Malaysia’s Top Glove over labour issues
Associated Press (AP), March 4, 2020 – Key medical glove factories cutting staff 50% amid virus
VOA, October 11, 2019 – US Ban on Malaysian Glove Maker Highlights ‘Systemic’ Labor Abuse
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Why Human Rights Matter to Business?
Risky Business with Darian McBain: Asia
15th January 2024
Why Human Rights Matter to Business with Darian McBain – Interview with Andy Hall – Migrant Worker Rights Specialist
Asian business is changing. Customer demands, government regulations, stakeholder expectations, they are all evolving under the pressure of the environmental crisis. And even the most robust business models are starting to show cracks. But it’s through those cracks that opportunities arrive.
Do you know how to navigate this new normal?
Andy Hall is a human rights defender, a researcher/investigator and activist, and an independent specialist on migrant worker rights.
In this episode of Risky Business, Andy talks about how he uncovered – and helped to tackle – the problem of labour rights abuses in Malaysia’s latex glove industry.
Click HERE to listen
