Glove maker WRP workers get paid, but may still be sent home

More than 1,000 workers of glove maker WRP Asia have been paid their salaries, but their fate is still in limbo amid a tussle between management and shareholders.

Earlier, interim liquidator BDO Consulting refused to pay the workers claiming that they are not direct WRP Asia workers and were hired by the firm’s sister company.

The liquidator had also threatened to not pay electricity for their hostel, but has now agreed to make those payments, sources within WRP Asia said.

However, the sources said it is still unclear if the foreign workers, who make up most of the affected staff, will be repatriated to their home countries.

Earlier, it was learnt that the liquidators had instructed the repatriation of some of the foreign workers by next week.

Workers were not allowed to work, as the factory has been sealed by the liquidators and gas supply had been shut down.

This despite management’s efforts to maintain partial operation to fulfil pending orders.

Hundreds of workers gathered at the factory gates on Monday to demand their pay and clarification on their employment status.

In January last year, some 2,000 Nepali workers at WRP Asia held a three-day strike demanding unpaid wages, prompting a probe by the Human Resources Ministry.

Since the strike, WRP Asia has conducted audits and provided the information to its customers.

However, in October, the US Customs and Border Protection banned WRP Asia from exporting to the US over suspicion of forced labour.

This cost the company an estimated US$40 million (RM163.59 million) in losses, as the US export makes up about 40 percent of its exports.

BDO Consulting issued a notice suspending operations on Dec 30.

Management soon after issued a circular to customers assuring them that orders will be fulfilled.

According to a lawyer appointed by WRP Asia’s board of directors, shareholders are injecting an additional RM22 million into the firm via private equity firm Tael Partners. This follows an injection of RM3.25 million on Jan 2.

Thomas Philip Advocates and Solicitors, the firm representing the board, said this is to ensure WRP Asia can continue operating “without interference or hindrance from previous management” led by former CEO Lee Son Hong.

The board earlier claimed it is taking legal action against Lee.

Human Resources Minister M Kulasegaran said the ministry is monitoring the situation. - Mkini