Goodyear Tire Malaysia Loses Dispute Against Foreign Workers
Good news for migrant workers in Malaysia finally as big business is forced by Malaysian Industrial Court to pay back due wages.
This case for came to light on the 31st of May 2021 when a number of foreign workers at the Goodyear Malaysia tire factory in Shah Alam, Selangor alleged that they were being unfairly treated with less wages.
The workers took their grievances to a lawyer and filed a complaint with the Industrial court.
Reuters has just shared news that Malaysia’s Industrial Court has ruled in favour of over a hundred migrant workers in a labour dispute against American tire manufacturer Goodyear Tire & Rubber Co, court documents showed on Thursday, amid accusations of unpaid wages and employee mistreatment at the firm’s Malaysian factory.
Around 250 migrant workers had filed a total of five complaints against Goodyear Malaysia in 2019 and 2020 over non-compliance with a collective labour agreement, and are claiming about 5 million ringgit (USD1.21 million) in unpaid wages.
The workers allege that Goodyear, one of the world’s largest tire makers, did not give them shift allowances, annual bonuses and pay increases even though these benefits were available to local staff, who are represented by a labour union.
Goodyear Malaysia argued that the migrant workers did not have legal standing to file the complaint as they were not union members, according to the court documents. The workers are from Nepal, Myanmar and India.
In three rulings dated June 9 and published on Thursday, Industrial Court President Rasidah Chik dismissed Goodyear’s argument, ordering the firm to pay back wages owed to 109 workers and comply with the collective agreement.
“It is clear that the complainants have proved that all of them are covered within the scope of the collective agreement and thus they are eligible to receive the benefits provided,” Rasidah said.
Goodyear Malaysia was not immediately available for comment.
“This is just the tip of the iceberg albeit a significant milestone in the treatment of migrant workers in this company,” said the workers’ lawyer Chandra Segaran Rajandran.
They will look to pursue other benefits in the collective agreement that have been denied to the workers, including arrears in overtime payment and other allowances, he added.
The court has already ruled in favour of the foreign workers in two of the cases last year. Goodyear has challenged both verdicts at the High Court.
Goodyear is also facing accusations of unlawful overtime, wrongful salary deduction, denying workers full access to their passports, and threats to migrant workers, Reuters has reported.
This ruling will now open a new chapter for many migrant workers who have been underpaid and abused by factory owner in Malaysia and new cases will start to be filed in coming months using this case as an example.
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