UK faces legal action for approving firm accused of using forced labour as PPE supplier

  • 1/6/2022
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The UK government is facing legal action over its decision to keep using a Malaysian company accused of using forced labour as a supplier of personal protective equipment (PPE) to the NHS. Lawyers at the London-based law firm Wilson Solicitors have filed for a judicial review of the government’s decision to name the UK subsidiary of the Malaysian company Supermax as one of the approved suppliers in a new £6bn contract for disposable gloves for NHS workers. Supermax has faced persistent allegations of the use of forced labour involving its migrant workforce at factories in Malaysia since 2019. In October 2021, the US banned imports from Supermax after an investigation found “ample evidence” of forced labour. Canada halted federal imports in November 2021, also due to concerns over labour abuses. In 2019 Supermax workers claimed they had to work 30 days in a row without a day off and had paid high fees in their home countries to get the jobs. The company denied the allegations. After the US ban, the UK government launched its own investigation into the allegations of modern slavery and forced labour concerning Supermax. But in December 2021 Supermax was named as one of the approved suppliers able to pitch for contracts under the NHS’s new “framework agreement” for the purchase of surgical gloves. Wilson Solicitors, which is acting for a group of Supermax workers, said it had asked the NHS to reconsider its decision to continue awarding contracts to the company, arguing that public procurement legislation in the UK allowed for the authorities to discontinue relationships with suppliers on the basis of evidence of labour abuses. It said it found the government’s response “inadequate” and so is proceeding with the judicial review. “The legal requirements are clear that there should be real verification of suppliers before the award stage, but it is not clear that these necessities have been met,” said Nusrat Uddin, a solicitor at Wilson. “It is inadequate for the government to carry out due diligence after the award stage, their approach undermines the UK’s claims that they are world-leading in the fight against modern slavery and highlights the weakness in their own legislation, policies and practices,” she said. The case is due to be lodged at the high court on Friday. Wilson said it was the first time that the UK government had faced legal action under public procurement legislation. Supermax has provided hundreds of millions of gloves via the NHS to hospital doctors and nurses. In 2020, it received a Covid-19 contract worth £316m. The latest order placed with Supermax was in July 2021 for 135m gloves at a cost of £7.9m, according to the Department of Health and Social Care. A government spokesperson from the Department of Health and Social Care, which oversees the NHS, said: “We have made strong commitments to eradicate modern slavery from all contracts in the government supply chain. “We take any allegations of this nature very seriously and do not hesitate to investigate claims made against manufacturers. A proper due-diligence process is carried out for all contracts and our suppliers are required to follow the highest legal and ethical standards. We cannot comment further at this stage.” Malaysia produces nearly two-thirds of the world’s disposable gloves. During the pandemic, the NHS also provided UK hospitals with millions of gloves from Brightway and Top Glove, which have faced accusations of labour abuses from some of their workers. Supermax did not respond to the Guardian’s request for comment but said in a statement that it had implemented a new foreign worker policy in November 2021, which would “speed up the process” of meeting the International Labour Organization’s labour standards. It also said it had raised its minimum wage, was repaying recruitment fees to some former workers, and was working on an equal pay structure to eliminate discriminatory practices.

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