TAICHUNG, Taiwan (BRAIN) Giant Group says it issued refunds on Dec. 1 to all its migrant workers who had paid recruitment fees in the past and it is hoping for a "swift" revocation of the Withhold Release Order that U.S. Customs and Border Protection issued in September.
Giant said it completed its first phase of worker refunds in October and finalized the second phase on Dec. 1.
"The refund calculations and procedures were implemented in accordance with recommendations from a third-party independent auditor, following international standards and thorough fact-finding investigations and assessments. All refund amounts have now been fully transferred to the workers accounts. This development signifies the full implementation of the Zero Recruitment Fee responsible recruitment policy and marks an important milestone in the companys human rights and labor governance efforts and responsible recruitment practices," the company said in a statement Friday.
The foreign worker migrant recruitment fees, which are legal in Taiwan but illegal in many nations, were one of the practices cited by CBP in its WRO announcement, which accused Giant of forced-labor abuses. Historically Giant and other Taiwan manufacturers have used third-party recruiters to obtain workers, typically on multi-year contracts. The recruiter fees were typically withdrawn from worker paychecks over the course of their employment, resulting in an ongoing debt that some advocates refer to as "debt bondage."
Besides the refunds, Giant said it is implementing "a detailed Corrective Action Plan (CAP) in accordance with recommendations from the third-party independent audit organization. The CAP includes corporate policy updates and enhanced recruitment management systems, coupled with extensive online and on-site training programs designed to promote labor rights awareness and strengthen workers' rights consciousness. It is the company's goal to pursue the swift lifting of the WRO and establish an elevated and positive example for the enhancement of labor and human rights governance through the collaboration with CBP."
Besides the recruitment fee practice, CBP charged Giant with other worker-rights violations, including "abuse of vulnerability, abusive working and living conditions, debt bondage, withholding of wages, and excessive overtime."
Giant said it has strengthened its internal grievance procedures and promoted a migrant worker hotline. "Should CBP or relevant authorities request additional actions, the company will fully comply," it said in the release. Giant previously announced improvements to worker conditions including new dormitories.
Giant is providing updates on its website at esg.giantgroup-cycling.com/en-US/prresponse01.
Other manufacturers take steps
Fellow Taiwan bike maker Merida Industries also has enacted a zero-fee policy and refunded employees for their fees paid, a company official confirmed to BRAIN. Cheng Shin Rubber, parent of the Maxxis and CST tire brands, also has reportedly enacted a zero-fee policy.
