KUALA LUMPUR (Feb 8): Supermax Corp Bhd has expanded its remediation plan to include former direct hire and contract workers who left the company before Oct 1, 2019. 

The group has recently rolled out a new and comprehensive policy to strengthen its human resources management and migrant worker policies and practices. 

“These new initiatives and revised eligibility criteria for remediation have been agreed upon after seeking views and advice from a reputable international consulting firm as well as through ongoing engagement and dialogue with Andy Hall, a migrant worker rights specialist. 

“Supermax has also engaged an international consulting firm to continue to assess and advise on the payout to all our current and former workers as well as to track and locate these workers that have returned to their home countries. Supermax is committed to ensuring all former workers receive their remediation payment, including those in the expanded scope,” said Supermax in a statement to Bursa Malaysia on Tuesday (Feb 8). 

In efforts to ensure that all entitled former workers receive their remediation payment, the group said, notices will be published in newspapers of respective foreign workers' origin countries, and outreach activities will be conducted within a six-month window period from February to July 2022 to reach out to as many former workers as possible. 

Furthermore, the company will also set up a sinking fund to ensure that it remediates these former workers and all other eligible workers according to the revised eligibility criteria for remediation. 

“The sinking fund shall be reviewed accordingly when it is depleted and shall be governed by an advisory committee consisting of management, consultants and independent migrant worker rights specialist Andy Hall,” it said. 

In addition, Supermax has also implemented a one-off RM5,000 ex-gratia payment to all its workers and shall add a further element of interest on the amount of past recruitment-related fees and costs paid by workers. 

“The company is pleased to announce the completion of these payments to its current active workers on Feb 7, 2022 (Monday). Former workers will also be receiving the same payout starting from February 2022 until July 2022. 

“To date, Supermax has paid out a total of RM25.67 million in remediation covering past recruitment fees, ex-gratia and other related costs to its workers,” said Supermax. 

The company noted that it is making efforts to elevate its human resources practices to be more aligned with International Labour Organization standards, adding that it had implemented a zero-cost recruitment policy and adopted an equal pay and benefit structure for foreign workers in Malaysia. 

“The company has also proactively raised its minimum wage to RM1,400 for workers across all categories. The process of implementation of the policies is currently progressing in stages and in accordance with guidelines of the Covid-19 SOPs (standard operating procedures).

In October last year, the US Customs and Border Protection issued a withhold release order against Supermax and its subsidiaries based on information that alleged use of forced labour in their manufacturing operations.

At Tuesday’s midday break, Supermax shares went down three sen or 2.31% to RM1.27, with some 9.71 million shares done. 

At RM1.27, the glove maker had a market capitalisation of RM3.46 billion. The counter had dropped 79.79% from RM6.34 in the past one year.