Glovemaker Top Glove Corp Bhd said measures have been put in place to prevent its workers from working “overtime” (OT) in excess of the allowed 104 hours a month.
The group, in a filing with the stock exchange, said the measures had been implemented on a staggered basis across all its factories between March and November 2018.
“By December 2018, workers will not be working in excess of the 104-hour limit as permitted by the labour law,” it said.
In response to news reports alleging that some of its migrant workers were being mistreated, the group stressed that there was “absolutely no forced OT”.
The group added that it regularly conducted training to improve worker efficiency and quality of work.
Reuters had reported that Britain was launching an investigation into the medical gloves used by its health service after an exposé by the Thomson Reuters Foundation.
The report said its health ministry planned to investigate standards at Top Glove – which makes rubber gloves for Britain’s National Health Service – after the report alleged that some of the company’s foreign workers were “working illegal overtime to pay off debts”.
Following the allegations, the group’s shares fell 35 sen or 5.93%.
Human Resources Minister M. Kulasegaran also came out to quash the allegations, saying that his enforcement officers had spoken to the workers at the factories on the matter.
Top Glove closed one sen lower to RM5.54 yesterday.
Meanwhile, AmInvestment Bank Research has maintained its “buy” call on the counter, saying it was “unperturbed by the latest development”.
“We believe the implementation of the new measures to prevent illegal OT hours will ease the concerns any stakeholders might have with regard to the legality of its labour practices,” it said.