TAICHUNG, Taiwan (BRAIN) — Giant Group said it "formally engaged" with U.S. Customs and Border Protection on Monday through its U.S. counsel, following CBP's issuing of a Withhold Release Order on products made in Giant's Taiwan factory, preventing the improtation of products from that factory because of alleged forced labor.
Giant also said it has sent letters to Taiwan's Ministry of Foreign Affairs, Ministry of Labor, and Ministry of Economic Affairs, reporting progress and requesting assistance. The ministries have previously said publicly that they are investigating the allegations and working to reverse the WRO.
In a statement Thursday, Giant said it was committed to openness and transparency and working with international partners to "safeguard supply chain stability."
Giant said it continues to monitor the worker-protection measures it took effective Jan. 1, 2025, following media reports of conditions at its factory and others in Taiwan. Giant said it initiated a Zero Recruitment Fee Policy in which the company — and not foreign workers — pay international recruiter fees. It also upgraded worker housing in January.
Activists including Danish journalist Peter Bengtsen say that while Giant has agreed to the no-fee policy for workers hired after Jan. 1, it did not agree to reimburse workers hired before then and who are still contracted to work at its factory. Bengtsen said that equates to continued "debt bondage" for those workers.
In an email to BRAIN, Bengtsen said the conditions at Giant are common in Taiwan.
"The risk of debt bondage is the rule, not the exception, for migrants employed in Taiwan’s bicycle and other industries, as many incur high debts to pay recruiters exorbitant fees to get jobs," he said.
Taiwan is one of the few countries were such recruitment fees are legal, and observers said that while Giant's policies might be within Taiwan's law, they may not meet international laws and market expectations. It's not clear whether CBPO investigated conditions at the factory after the Jan. 1 changes. CBP's Office of Public Affairs has not responded to questions from BRAIN about its investigation and WRO.
In its statement Thursday, Giant said it "sincerely appreciates the concern and support from the public regarding this matter. Upholding our principles of openness, transparency, and accountability, we will proactively report progress to regulators, partners, and the public, and ensure that all related issues are properly addressed in accordance with international standards."
