Taipei: Bicycle maker Giant Manufacturing Co. Ltd. announced on Thursday that it has initiated the reimbursement of migrant workers for expenses incurred to secure their jobs and has pledged not to deduct future broker fees from their wages. This decision follows the U.S. Customs and Border Protection (CBP) issuing a Withhold Release Order on Giant’s products made in Taiwan due to forced labor allegations.
According to Focus Taiwan, the CBP’s investigation into Giant revealed indicators such as abuse of vulnerability, abusive working and living conditions, debt bondage, withholding of wages, and excessive overtime. Notably, the CBP order does not impact products manufactured outside Taiwan, as Giant also operates factories in China, Vietnam, Hungary, and the Netherlands.
Giant has expanded its “Zero Recruitment Fee Policy” to all current migrant workers, as per a news release issued on Wednesday. The company began reimbursing past fees to workers this week, which previously only applied to workers recruited since January 1 of this year. The policy ensures that Giant bears all recruitment fees, service charges, and related government costs.
Partial reimbursements have been issued to workers hired before January 1, starting Tuesday, according to a reply from Giant to CNA. However, the company did not disclose the reimbursement amounts or the number of phases involved. The reimbursement covers various fees paid by migrant workers, including broker fees, visa and document processing, medical examinations, and transportation expenses.
Before implementing this policy, migrant workers often paid these fees upfront with loans or through salary deductions post-employment, with brokers collecting most charges. Giant confirmed that starting Wednesday, it will no longer deduct any fees from workers’ wages. Salaries will be paid directly into workers’ accounts, complying with legal standards and without any recruitment-related deductions.
The Chinese-language Commercial Times reported on October 8 that covering migrant workers’ agency and processing fees could cost employers between NT$150,000 and NT$200,000 per worker. Giant indicated that this estimate is based on market rates and cannot be confirmed by them. A third-party adviser is tasked with developing a comprehensive compensation plan for workers hired before January 1, 2025, to determine the final reimbursement amount.
As of October, Giant employs 545 migrant workers, with 406 from Thailand and 139 from Vietnam. The company plans to continue using licensed agencies while exploring direct hiring options, ensuring that all fees are company-borne. Giant is also revising contracts with partner brokers to adhere to “ethical recruitment” and “worker-pays-zero” standards.
Giant has relocated all migrant worker dormitories, with over 400 workers moving into newly built facilities designed according to international labor and human rights standards. These dormitories have passed necessary inspections and offer reasonable living spaces, private bathrooms, and leisure facilities.
Jason Lee from the Rerum Novarum Center highlighted that Giant’s approach might lead brokers in workers’ home countries to impose new or additional fees. Lee, who has extensive experience working with migrant workers in Taiwan, suggested that the brokerage system should be abolished, as it often imposes varied and significant costs on workers even before they leave their home countries. Lee urged Giant to specify the exact coverage of reimbursements.
