M’sian Goodyear Factory Clears Labour Abuse Claims With Foreign Workers Who Alleged Nonpayment

By Lara Kramer  •  15 Sep 2022 in News

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Goodyear Tire & Rubber Co has come to a settlement with migrant workers who claimed unpaid wages and compensation at its Malaysian factory, according to the corporation and five former employees.

Goodyear, among the world’s top tyre manufacturers, did not disclose the amount reimbursed, but labourers said this year’s settlement agreements generally range from about 50,000 ringgit ($11,061.95) to 200,000 ringgit ($44,247.79) per employee, based on the duration of their tenure.

The former employees, who wished to remain anonymous as they were not permitted to discuss the settlement, stated that the net reimbursement they obtained was less than that, due to taxes and legal expenses.

According to the labourers’ lawyer, Chandra Segaran Rajandran, the total settlement offer surpassed the initial assertion of around 5 million ringgit. However, he declined to discuss the precise details, citing a non-disclosure contract.

The industrial judge mandated Goodyear to start repaying remuneration to some employees and to follow a compensation collective agreement. Goodyear had initially filed an appeal, but eventually began settlement discussions.

The agreement covers numerous suits brought against Goodyear in Malaysia’s industrial court as of 2019 by a sum of 184 present and former employees from Nepal, India, and Myanmar. Goodyear stated that the payout abided by an outside accounting analysis of reimbursement and was in conformity with the provisions of the judicial rulings.

“The company is delighted to have attained an outcome that is acceptable to the workers,” Goodyear said, adding that it was dedicated to human rights and equitable labour practises, as reported by Reuters.

Goodyear also stated that its Malaysian unit has parted company with a vendor and a human resources manager involved in the situation, and that it has bolstered its vendor selection procedure to ensure adherence with its policies and principles.

The company stated that it had fulfilled a thorough investigation into the workers’ complaints, along with an independent audit of its labour practises. It didn’t reveal the audit reports.

Apart from the settlement agreement, the employees asserted that they received 10,000 ringgit each from Goodyear as compensation for the recruitment fees they paid to hire agents in their native countries.