Taipei: Bicycle maker Giant Manufacturing Co. Ltd. announced Thursday it has started reimbursing migrant workers for expenses incurred to secure their jobs and will no longer deduct future broker fees from their wages. The announcement follows a Withhold Release Order (WRO) from the U.S. Customs and Border Protection (CBP) due to allegations of forced labor associated with Giant's Taiwan operations.
According to Focus Taiwan, the CBP investigation highlighted issues such as "abuse of vulnerability, abusive working and living conditions, debt bondage, withholding of wages, and excessive overtime." The WRO is specific to Giant's Taiwanese products and does not impact those manufactured in facilities located in China, Vietnam, Hungary, and the Netherlands.
In a news release on Wednesday, Giant revealed the extension of its "Zero Recruitment Fee Policy" to include all current migrant workers, with reimbursements for past fees beginning this week. Initially applicable only to workers recruited after January 1, the policy mandates that Giant covers all recruitment-related expenses, including government costs and service charges.
Giant confirmed to CNA that partial reimbursements had commenced for workers recruited prior to the policy's introduction, although specific amounts and the number of reimbursement phases remain undisclosed. The reimbursements cover fees paid in both the workers' home countries and Taiwan, such as broker fees, visas, medical exams, and transportation.
Before the policy expansion, migrant workers often paid these fees with loans or through salary deductions, with brokers collecting most of the payments. Giant assured CNA that starting Wednesday, no deductions related to recruitment fees would be taken from wages, and salaries would be paid directly into workers' accounts.
On October 8, the Commercial Times reported that covering these fees could cost employers between NT$150,000 and NT$200,000 per worker. Giant, however, could not confirm these figures, noting they were media estimates. The company has engaged a third-party adviser to develop a compensation plan for workers hired before January 2025.
Giant employs 545 migrant workers, primarily from Thailand and Vietnam, and will continue using licensed agencies while exploring direct hiring options. The company emphasized that all fees, regardless of hiring channel, will be company-borne.
In its Wednesday statement, Giant also announced the completion of new dormitory facilities for over 400 workers, aligning with international labor and human rights standards. The dormitories have passed safety inspections and offer amenities like private bathrooms and leisure spaces.
Social worker Jason Lee from the Rerum Novarum Center expressed concerns that Giant's policy might not tackle the root issues and could lead brokers to impose new fees. He emphasized the varied loan and fee structures faced by migrant workers and called for more clarity from Giant on reimbursement specifics.