WASHINGTON (BRAIN) — Giant Group says it met with Customs and Border Protection officials in Washington in late October to discuss the Withhold Release Order that CBP placed on shipments from Giant's Taiwan factory because of alleged labor rights violations.
"The atmosphere was positive and constructive, with both sides engaging in extensive discussions on the company’s current status and ongoing improvement actions," Giant said in a media statement on Wednesday.
According to Giant, "CBP acknowledged Giant Group's proactive attitude and actions following the issuance of the Withhold Release Order (WRO), as well as the company's immediate engagement in constructive communication and meeting with CBP. CBP also recognized the company's incorporation of labor rights into its corporate sustainability governance goals and active implementation."
CBP can issue a WRO when it has evidence that reasonably suggests there are labor violations. The orders prevent merchandise from being released into the U.S. marketplace, but the shipper has the option of re-exporting the shipment to another market. Giant has said no shipments are currently being held. Following an investigation, CBP can issue a finding that allows it to seize shipments and issue fines.
According to the Giant release, "CBP emphasized that this case is not penalizing Giant, but rather aims to promote corporate improvement in labor and human rights governance through collaboration with enterprises. Giant also clearly expressed its willingness to actively collaborate with CBP, as a positive example for the enhancement of labor and human rights governance."
Following press reports, Giant enacted a "zero-fee" policy last January, in which current migrant employees were not forced to pay recruitment fees. In October, Giant expanded that program to offer current workers reimbursement for recruitment fees they've paid in the past. Giant also says it has improved worker living conditions at its plant.
The company said it has hired an international third-party assessment/audit organization to assess and audit activities at the company. The organization will conduct employee interviews, document reviews, and make on-site assessments of factories and dormitories, Giant said.
"Giant Group will continue to follow international standards as the basis for internal management and improvement, implement a fair, safe, and respectful workplace environment, and continuously update external progress to ensure information transparency and social trust," the company said.
The Taiwan Bicycle Association announced this week that it will launch a Supply Chain Due Diligence program to engage third-party auditing and consulting organizations to assess labor conditions across manufacturers’ operations and supply chains. The TBA will subsidize the program for the first 50 companies to participate, tapping a special budget funded by member contributions.
Giant finances
Giant announced earlier this week that the company had signed a NT$5 billion ($163 million) credit agreement with a syndicate including Taishin International Commercial Bank Co., Ltd. and other syndicated lending banks. Giant said the credit agreement would allow repayment of existing liabilities and provide medium-term operating funds.
Taiwan's three publicly traded bike factories are reporting their sales were down in September, year-over-year, although Ideal Bike, the smallest of the three, recorded sales closer to flat.
Giant reported Oct. 9 that its operating revenue in the first 9 months of the year totaled NT$47.96 billion, down 18% from the same period last year.
