SHAH ALAM, Malaysia—Top Glove Corp. said it has made its first remediation payment of $1.05 million to resolve a migrant labor issue at the company.
The Aug. 10 disclosure came less than a month after the U.S. customs and border protection agency placed a detention order on disposable gloves manufactured by two Top Glove subsidiaries for the suspected mishandling of its migrant workforce.
At the time, Top Glove said the issue specifically involved recruitment fees paid by foreign workers to employment agents.
But the gloves maker maintained it had been bearing all recruitment fees since the adoption of its "zero-cost recruitment" policy since the beginning of 2019.
The remediation payment, Top Glove said, was made to migrant workers who joined the company prior to the implementation of the zero-cost recruitment policy.
In total, the gloves manufacturer expects to pay a remediation fee of $12.6 million, subject to finalization with the U.S. customs office.
In a separate statement issued last month, Top Glove said it has been in "cordial and constructive" engagement with the U.S. customs office to resolve the detention order, which was placed on its products July 15.
"We have made good progress and look forward to arriving at an agreement on remediation within the month of August 2020," Top Glove said in a July 30 statement.
Top Glove's share prices on the KLSE took a 10 percent hit to $4.67 following the detention order on July 16.
As of 9:30 a.m. on Aug. 14, company shares prices stood at $5.68.