Migrant textile workers in Taiwan at risk of forced labor: U.S. NGO

Taipei, March 28 (CNA) An investigation report released by U.S.-based NGO Transparentem in February found that migrant workers may have been subject to forced labor at nine Taiwanese textile companies that supply well-known international brands.

Transparentem began the investigation in December 2021 and interviewed 90 workers from Indonesia, the Philippines, Thailand and Vietnam who worked at nine textile companies in Taiwan.

On March 6, the Fair Labor Association, the Serve the People Association in Taoyuan (SPA) -- a Taiwan-based migrant rights group -- the textile companies, and Taiwan's Workforce Development Agency attended an online presentation of the report titled, "Following the Thread: Labor Abuses in Taiwan's Textile Industry."

The report identified that the suppliers provide products for fashion brands including Adidas, Puma, Nike, H&M and Patagonia.

Debt, threats and wage deductions

The most rampant form of forced labor identified at all nine companies was the collection of "recruitment fees" -- banned by the Taiwanese government and sometimes as high as NT$90,000 (US$2,716) -- as well as monthly "service fees" of up to US$60 a month.

Recruitment fees, collected by recruitment agents in the worker's country, are split with employment brokers in Taiwan. They often lead to workers being trapped in "debt bondage" after moving to Taiwan.

Service fees are taken from workers' monthly salaries by the recruitment companies. While the Taiwanese government does not ban the collection of such fees, the practice is deemed by the International Labor Organization (ILO) as "withholding wages."

The ILO has flagged both practices as indicators of forced labor.

Other forms of forced labor identified included forcing people who wanted to quit to continue working, intimidation and threats, being fined for minor infractions, retention of identity documents, issues with pay and deception.

Workers at four of the companies who wanted to switch employers were either prevented from doing so or warned that they would be sent home if they did not renew their contracts, the Transparentem report said.

At five of the suppliers, workers were threatened with deportation. Wage deductions were also used as a penalty for minor infractions, such as being late or using a mobile phone.

Path to accountability

Transparentem said it contacted 47 brands associated with the suppliers in February 2024 and called on them to address the labor issues identified.

The report said most of the brands have begun creating corrective action plans (CAPs) with suppliers, including pledges to reimburse migrant workers for any recruitment and service fees.

Transparentem said, however, that as of the report being released in February, only two of the suppliers had refunded some fees and that no comprehensive repayment plans were in place.

Chief counsel at YKK's Asia headquarters Yuki Abe told CNA that its audit of one of its suppliers, Lovetex -- which it conducted after Transparentem flagged it as problematic -- found "potential abusive practices."

Abe said that YKK is now working out how to reimburse the migrant workers at Lovetex and how to ensure that no other workers they recruit are out of pocket.

A source at one of Patagonia's suppliers told CNA his company has been attending weekly online meetings with representatives from the American Apparel and Footwear Association (AAFA) and the Taiwanese Textile Federation to discuss the specifics of its CAP, but declined to go into detail.

In a written response to CNA, Patagonia said it met with its suppliers shortly after learning about the findings of the investigation and helped them create improvement plans.

One of the goals included in the plans is the "ultimate elimination" of recruitment fees, according to Patagonia.

The company said it has set comprehensive and high standards for the working conditions of migrant workers at the companies in its supply chain and will continue to demand that these standards be met.

A long-term solution?

Minister of Labor Hung Sun-han (洪申翰) told CNA that the Labor Ministry will "carefully investigate" incidents highlighted by Transparentem and "crack down" if violations involving forced labor and human trafficking come to light.

Hung pointed to the multilingual "Online Application and Inquiry Download System for Foreign Workers." On the website, workers can download their employment and job transfer permits. Hung said this can help workers from having their identification documents withheld or being charged fees when they switch employers.

Hung explained that the government has launched "migrant worker employment transfer service centers" in Taoyuan and Changhua County, where migrants can access counseling services with the assistance of staff who speak English, Bahasa Indonesia, Thai and Vietnamese.

Hung said this would help eliminate the need for employment brokers.

He also advised migrant workers to take advantage of the 1955 hotline to report any abuse or exploitation.

"International governments and brands have in recent years focused more on the issue of forced labor in supply chains. Therefore, the Ministry of Labor has introduced measures to tackle these issues and protect worker's rights," Hung said.

Lennon Wang (汪英達), director of migrant worker policies at SPA, however, expressed "disappointment" at Hung's response.

"Migrant workers should not be asked to pay any fees, as employers have far greater bargaining power (with employment brokers)," Wang said.

“Furthermore, brands should contribute toward any applicable fees so suppliers do not have to shoulder the full cost. Only then, will it be truly fair," Wang said.