Exclusive-U.S. detectives concern Goodyear Malaysia employees over labour practices By Reuters

© Reuters. SUBMIT IMAGE: A basic view of Goodyear factory in Shah Alam, Malaysia May 6, 2021. Picture taken May 6, 2021. REUTERS/Lim Huey Teng/File Photo


By Mei Mei Chu and A. Ananthalakshmi

KUALA LUMPUR (Reuters) – U.S. federal government detectives have actually spoken with employees at Goodyear Tire & Rubber Co’s Malaysian factory about their working conditions, staff members informed Reuters, magnifying examination of prospective labour abuses by the tire maker in the nation.

The questioning by the Department of Homeland Security might cause U.S. prosecutions of among the world’s greatest tire makers, which deals with associated suits and 2 continuous examinations by regulators in Malaysia and the United States, each checking out prospective exploitation of foreign employees.

Five existing and previous Goodyear Malaysia personnel stated Homeland Security Investigations (HSI) representatives have actually inquired about their working and living conditions, information of lawsuit they submitted versus Goodyear, an authorities problem declaring risks from Goodyear personnel and work environment mishaps.

In video calls over the previous 11 months or more, the representatives from the primary criminal-investigation system of the Department of Homeland Security likewise asked for files associating with their work, stated the employees, who asked not to be recognized due to the fact that they feared reprisals.

Reuters might not identify the particular offenses that HSI is looking for to develop.

HSI stated it does not discuss continuous examinations.

Ohio-based Goodyear stated it was dedicated to guaranteeing its supply chain practices abided by laws and to its own policies.

“Goodyear and Goodyear Malaysia are currently undertaking a thorough review of the matter, including retaining an independent social auditing firm to inspect working and housing conditions,” Goodyear informed Reuters in an emailed declaration. Goodyear did not determine the audit company.

The HSI questioning follows preliminary accusations submitted in 3 grievances by 185 migrant employees from Nepal, India and Myanmar – consisting of the 5 who talked to Reuters – versus Goodyear Malaysia in the nation’s commercial court in 2019 and 2020. They declared overdue earnings, mentioning non-compliance with a cumulative arrangement, wrongful reductions and risks to migrant employees.

In 2020 and in June, the court purchased Goodyear to repay earnings to some employees and adhere to the arrangement. The business has actually appealed the decisions.

Goodyear informed Reuters it has actually now dedicated to a settlement with the employees represented in the labour conflict.

The business argued in court that foreign employees are not entitled to the advantages of the cumulative arrangement due to the fact that they are not union members. It has actually decreased to discuss the accusations.

Malaysia’s biggest fund supervisor, Permodalan Nasional Berhad, which owns 49% of Goodyear Malaysia, did not react to ask for remark.

CONCENTRATE ON Required LABOURRepresentatives from the Malaysian federal government’s Anti-Trafficking in Persons and Anti-Smuggling of Migrants Council (MAPO) were likewise on a few of the video calls with HSI, the 5 employees stated.

Former MAPO head Mohd Hadzwan Zulkefle, who employees stated was on the calls, informed Reuters the company has actually opened an examination into Goodyear Malaysia over labour trafficking. He did not state when MAPO began the probe, which has actually not formerly been reported.

He decreased to discuss whether MAPO was working together with U.S authorities.

A MAPO representative informed Reuters it understood “the alleged forced labour issue” at Goodyear Malaysia, which the concern is under examination by “responsible parties.”

The Department of Labour of Peninsular Malaysia, which in 2015 charged Goodyear Malaysia with breaching labour laws, did not react to an ask for remark. Goodyear has actually not discussed the labour department charges.

The U.S. State Department in July devalued Malaysia to its worst ranking on human trafficking, after a string of grievances by rights groups and U.S. authorities over supposed exploitation by plantations and factories of migrant employees, on whom the Southeast Asian country relies.

Goodyear Malaysia is currently being examined by U.S. Customs and Border Protection over its labour practices, according to Liberty Shared, a rights group that petitioned Customs for the probe. Customs can prohibit imports of items it discovers to be made with required labour.

Goodyear did not react to an inquiry on the MAPO examination.

The business informed Reuters in July it was not familiar with the petition to U.S. Customs which it had strong policies to safeguard human rights.

HSI can start criminal examinations and coordinate prospective prosecutions of American companies and U.S-bound supply chains whose items are made by methods of required labour, according to its site.

An official HSI examination “would be extremely significant because it will move the discussion on forced labour from business ethics and sustainability, into one that relates to criminal law,” stated Duncan Jepson, handling director of the Hong Kong-based Liberty Shared.

However, Jepson stated one difficulty to developing misbehavior would be an absence of precedent.

In the United States, he stated, “Law enforcement and attorneys prefer to have previous cases to support their strategies and in forced labour there are no previous criminal cases against transnational corporations.”

Documents formerly seen by Reuters reveal some Goodyear Malaysia employees logging as much as 229 hours of overtime a month, more than two times the optimum enabled under Malaysian law. Workers stated cash was wrongfully subtracted from their wages which the business was rejecting them open door to their passports.

Goodyear has actually decreased to discuss the accusations, mentioning court procedures.

Malaysia’s labour department stated in May it had actually charged Goodyear in 2020 for 9 offenses of labour laws, unassociated to the suits, relating to extreme hours and wrongful wage reductions.

The 5 employees spoken with by Reuters state they informed the HSI detectives they were not pleased with centers the business offered, their hostels were crowded, they paid recruitment costs in their house nations and did not get raise and allowances that they were qualified for.


News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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