Malaysia refutes Nike’s claim of worker abuse at local factory

Malaysia - The Government of Malaysia has dismissed allegations of abuse on workers rights at a local garment factory contracted to Nike Inc.

Human Resources Minister S. Subramaniam said that an initial probe by Hytex Group showed that the migrant labours in question were remunerated accordingly.

Subramaniam told reporters, "The 1,145 workers from Bangladesh, Vietnam and Myanmar are each paid between 840 and 1,500 ringgit (US$262 and US$469) a month, with only 100 ringgit (US$32) deducted for an immigration levy which is allowed legally. From our investigations, the employer didn't breach any labour laws".

This is in contradiction to reports from Nike Inc. suggesting that foreign workers at the garment factory were mistreated and had their wages docked.

Nike countered that many of the foreign workers paid a fee to agents in their home country to secure their jobs, but once in Malaysia, the factory took their passports and withheld their wages to repay a government levy. The workers were also forced to live in cramped, filthy housing, Nike said.

In response to the allegations on sub-standard living conditions, Subramaniam responded that the ministry was told by Hytex that workers were housed in three-bedroom flats, with four people to a room. Further investigations by the ministry prove this to be the case.

However, Subramaniam confirmed that Hytex did indeed confiscate workers' passports saying it has been a policy in this country for quite a number of employers to keep the passports for safety reasons. In return, labourers were given an employment card and employers were obliged to return the passports upon demand.

The ministry said it has yet to receive any reports of abuse from Hytex workers to date.

Nike is reviewing their Malaysian factory base and has taken immediate steps to protect the workers. These measures include transferring them to Nike-inspected and approved housing, reimbursing them and providing airfares for those who wish to return home.