According to Reuters, Goodyear Tire & Rubber Co, one of the world's largest tire manufacturers, plans to close its factory in Malaysia on June 30th, affecting over 500 employees.
Reportedly, Goodyear's Malaysia factory is located in the Shah Alam area of Selangor state and has been operational since 1972. The decision to close the Malaysia factory is part of Goodyear's corporate restructuring plan, aiming to save $1 billion in costs by 2025.
On March 7th, Goodyear stated, "These decisions were not made lightly, and we remain committed to caring for and respecting our associates. We will continue to serve the Malaysian market with industry-leading products and solutions manufactured from other Goodyear facilities."
On March 8th, the Malaysian Investment Development Authority (MIDA) stated in a release that the closure of Goodyear's Malaysia factory will directly impact around 550 employees. MIDA mentioned that the Malaysian government and Goodyear have been working to establish a support framework to aid workers, including plans for skills enhancement, retraining programs, and facilitating employment placement.
In recent years, Goodyear has faced accusations of mistreating workers in Malaysia, including wage arrears, overtime exploitation, and threats against dozens of migrant workers in Malaysian manufacturing facilities. Reuters reported that Goodyear and the workers reached a settlement agreement in 2022, with each employee receiving compensation ranging from 50,000 to 200,000 Malaysian Ringgit (approximately $10,660 to $42,644 USD) based on the length of employment.
The Malaysian government has also faced allegations from its own Ministry of Human Resources and U.S. authorities of labor abuses in its factories, which rely on millions of migrant workers to produce various products ranging from palm oil to medical gloves and semiconductor chips. Additionally, the Malaysian government has set a goal to eradicate forced labor by 2030.
