Glove maker WRP workers only paid RM500 despite fund injection
Workers of glove maker WRP Asia Pacific Sdn Bhd were today each paid only RM500 of salaries owed, despite assurance by company shareholder Tael Partners that it has injected RM3.25 million to pay the salaries in full.
The workers were paid in cash, with Tael Partners’ representatives bringing in RM1 million to WRP Asia Pacific’s office in Salak Tinggi, Selangor this afternoon.
The cash was delivered in briefcases to the building accompanied by some 40 security guards, a source from WRP Asia Pacific said.
Workers of glove maker WRP Asia Pacific Sdn Bhd were today each paid only RM500 of salaries owed, despite assurance by company shareholder Tael Partners that it has injected RM3.25 million to pay the salaries in full.
The workers were paid in cash, with Tael Partners’ representatives bringing in RM1 million to WRP Asia Pacific’s office in Salak Tinggi, Selangor this afternoon.
The cash was delivered in briefcases to the building accompanied by some 40 security guards, a source from WRP Asia Pacific said.
According to the source, a Tael representative announced it can only pay RM500 per worker because it was only able to withdraw RM1 million from the bank today.
The representative promised to bring another RM1 million on Monday and the remaining RM1.25 million on Tuesday.
“They said they will pay executives later and then a few managers. This is very strange because if they have injected the funds then they can just remit the salaries via payroll as per normal,” the source said.
The source said there are fears that the workers have been “misled” and the remaining funds will not come through.
Some workers have also claimed they did not even receive the RM500 distributed today.
Shareholder tussle
WRP Asia Pacific has been embroiled in a tussle between management and shareholders, leaving the fate of more than 1,000 workers in limbo.
On Dec 30, the court-appointed interim liquidators BDO Consulting issued a notice to the company to cease operation, but the management scrambled to assure customers that it will still fulfil orders.
Since then, the factory has been sealed, while other glove makers have made offers to take over some WRP foreign workers.
The liquidators earlier refused to pay the workers because they were technically hired by WRP Asia Pacific’s sister company.
It was also learnt that the liquidators instructed the repatriation of some of the foreign workers by next week.
Earlier this week, law firm Thomas Philip Solicitors and Advocates, appointed by the company’s board of directors, said an additional RM22 million will be pumped into WRP Asia Pacific by Tael Partners to turn around the business.
In a statement today, Thomas Philip confirmed the payment to non-executive staff is being paid in stages, with the first payment made today.
The solicitors said the board chose to make a direct cash payment to the workers to immediately address the issue of outstanding salary "in the best interest of (the workers') welfare".
"The strategy deployed today to immediately address the payment of WRP’s employees reflects the serious commitment of the board of directors to the employees and also their resolve to revive the operations of WRP, " it said.
In January 2019, WRP Asia Pacific workers held a three-day strike demanding their wages.
In October last year, the US Customs and Borders banned WRP Asia Pacific from exporting its products to the United States over suspicion of forced labour.
