One of the largest wheel manufacturers in the world, Goodyear Tire &, Rubber Co, plans to shut down its plant in Malaysia on June 30 this decision is expected to affect more than 500 people, according to the business and Malaysia’s purchase advertising firm.
The plant’s closure in the Shah Alam city of Selangor position, which opened in 1972, was a part of Goodyear’s corporate restructuring plan, which aimed to reduce costs by US$$ 1 billion by 2025.
The company stated in a statement on Thursday ( Mar 7 ) that” we continue to treat our associates with care and respect.”
With our industry-leading goods and answers from another Goodyear’s producing facilities,” We may continue to serve the Malaysian business.”
In recent years, Goodyear has been accused of labor abuses at its Malaysian manufacturing facility, including allegations of unpaid wages, extreme overtime, and threats to discipline dozens of migrant workers.
According to Reuters reports, the company and the employees reached a settlement agreement in 2022, with each employee receiving RM50, 000 to RM200, 000 ( US$ 10, 600 to US$ 42, 600 ), based on the length of their employment.
About 550 employees would be directly impacted by the closure of the plant, according to the Malaysian Investment Development Authority ( MIDA ) in a separate statement released on Friday.
According to MIDA, the Indonesian government and Goodyear have been collaborating to create a support framework to assist those employees, including job placements and empowering and mentoring initiatives.
Malaysia has been accused of labor injustices at its companies, which rely on thousands of migrant workers to produce anything from hand oil to health gloves and silicon chips, from its Human Resources Ministry and American authorities.
To reduce forced labor practices, the state has set a 2030 goal.