Top Glove's rising COVID-19 cases: Why it matters

What’s going on?

A record-breaking number of 1,884 new cases of COVID-19 were recorded on Monday with more than half (1,067) belonging to the cluster of cases originating from Top Glove’s factories.

The government announced that Top Glove worker dormitories have been placed under the Enhanced Movement Control Order (EMCO) from Nov 17 to Nov 30 after 215 people were found to have tested positive for the virus.

As of yesterday, the Health Ministry has screened 5,794 individuals, from which 1,889 tested positive.

The situation at the male dormitories after the government announced the implementation of the at Enhanced Movement Control Order (EMCO) the Top Glove company dormitories, in Klang, Selangor from Nov 17 to Nov 30. – Astro AWANI / Shahir Omar

The situation at the female dormitories after the government announced the implementation of the at Enhanced Movement Control Order (EMCO) the Top Glove company dormitories, in Klang, Selangor from Nov 17 to Nov 30. – Astro AWANI / Shahir Omar

An army member put up a barbed wire in front of the Top Glove workers’ dormitories at Jalan Abadi 1A Meru. - Astro AWANI / Shahir Omar

What happened after?

The government has ordered 28 of its factories to be closed in stages after the sharp surge of COVID-19 cases.

Top Glove in a statement yesterday said that they will fully cooperate with the authorities to carry out temporary stoppage in stages at its manufacturing facilities in Meru, Klang.

Since November 18, the company has temporarily stopped production in 16 facilities in the area while 12 facilities are operating at reduced capacities. 5,700 workers at their hostels were also screened.

Following the incident, Top Glove’s shares has also dropped sharply with share price dipping 48 cent to RM6.87 with 40.65 million shares traded as at 10.30 am today.

Why it matters?

Top Glove has benefitted in being the world largest rubber glove-maker’s factories during the COVID-19 pandemic as demand for medical gloves exponentially increases.

The Edge Markets has reported that Top Glove commands a 26 per cent share of the global market, with a production capacity of 80.2 billion pieces per annum.

With the closure of several its factories, analysts are saying they might lead to a temporary shortage of gloves globally as the number of COVID-19 cases continue to rise.

The news has also caught the attention of many who highlighted the negligence of the company in protecting its workers against the virus.

Top Glove is just another example of how no matter which govt is in power, greedy capitalists will always get their way, even if it kills everyone else
— Dafrosty (@Dafrosty) November 23, 2020

The most ironic Covid-19 story in Malaysia has got to be Top Glove. As the worlds biggest rubber gloves manufacturers that export essential supplies in times of crisis (NHS included) they still fail to protect their own workers from the virus, with more than 1k infected.
— Rahmah Ghazali (@rahmahghazali) November 23, 2020

Kluster Teratai is not due to public non-compliance. It is the inevitable result of the predatory exploitation of migrant labor by corporations like Top Glove If they're unaccountable, the surges will continue cyclically like the water disruptions; a product of similar impunity.
— Rohan Javet Beg (@RohanBeg) November 23, 2020

Former Youth and Sports Minister, Syed Saddiq Syed Abdul Rahman, has also called for the company to pay Windfall tax for its failure to protect its workers and its "supernormal profits" amid the COVID-19 pandemic.

Kenyataan saya berkenaan Top Glove, Kluster Teratai dan Windfall Tax. Prioriti saya adalah kepada rakyat, bukan syarikat-syarikat besar dan kaya.#Belanjawan2021 pic.twitter.com/2OecyjQ3a2
— Syed Saddiq (@SyedSaddiq) November 23, 2020

In the past months, Top Glove has been caught violating several labour practices.

On July 13, Human Resources Ministry carried out a raid at Top Glove's headquarters in Meru, Klang, and found that Movement Control Order (MCO)rules were breached, and foreign staff were provided with cramped quarters.

While the glove maker was cleared of forced labour offence, the company was compounded by the Ministry of Health Malaysia and was issued a compliance notice by the Ministry Housing and Local Government.

In a June report by United Kingdom’s Channel 4, the company has been accused of making illegal deductions from workers’ salaries and placing workers in appalling conditions in hostels with barely any protection measures.

The US Customs and Border Protection (CBP) has also placed a detention order on disposable gloves manufactured by two of its subsidiaries, Top Glove Sdn Bhd and TG Medical Sdn Bhd, on July 16 for issues relating to abuse of foreign labour.