Canada suspends Supermax imports over forced labor allegations

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(Bloomberg) – Canada has halted imports of Malaysian glove maker Supermax Corp. weeks after a similar US ruling amid allegations of forced labor practices.

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Canada has banned the government from further deliveries from the company’s unit, Supermax Healthcare Canada, until a company-mandated audit report on the matter is reviewed by authorities, Services said. and Procurement Canada in a press release on November 10. The audit report is expected by the middle of this month, the statement said.

Shares of major Malaysian glove makers such as Top Glove Corp., Hartalega Holdings Bhd. and Supermax, which are industry indicators, have more than halved this year after being among the hottest trades during the pandemic in 2020. The increasing pace of vaccinations and allegations of work abuse in some companies have weighed on the business outlook for the sector.

The Canadian authority said it was aware of recent actions by the US government against glove maker Supermax and that the Malaysian firm had hired an independent firm last month to conduct a full audit of its operations in accordance with the indicators. of forced labor of Organization the International of Labor.

US Customs and Border Protection ordered staff at US ports of entry in October to seize the Supermaxs latex gloves based on information that reasonably indicates the use of forced labor. Supermax said at the time that it had started working to comply with ILO standards since 2019 and would speed up the process.

Malaysian companies making everything from gloves to palm oil are grappling with poor labor practices scrutiny. US Customs had previously banned imports from FGV Holdings Bhd. and Sime Darby Plantation Bhd., and last month allowed Top Glove Corp., the world’s largest rubber glove maker, to resume shipments to the United States after a year-long ban.

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