Goodyear Tire & Rubber Co, one of the leading tire manufacturers globally, is closing its manufacturing plant in Malaysia by June 30, impacting over 500 employees.
Goodyear to Shut Down its Facility in Malaysia
According to Reuters, the tire maker's decision to shut down its facility in the Shah Alam district of Selangor state was part of its Goodyear Forward broader corporate restructuring initiative, which aims to achieve $1 billion in cost reductions by 2025.
Despite the plant's closure, the company said it remains committed to serving the Malaysian market by offering its products and solutions from other manufacturing sites within Goodyear's network.
Closure of Goodyear Malaysia to Affect 550 Workers
The Malaysian Investment Development Authority (MIDA) disclosed that the closure would directly impact around 550 employees. In response, the Malaysian government and Goodyear have been collaborating to devise a support framework to assist affected workers.
This framework includes initiatives such as upskilling and reskilling programs and facilitating job placements for the affected employees.
Goodyear's Malaysian manufacturing plant has been embroiled in allegations of labor abuses in recent years, including issues such as unpaid wages, excessive overtime, and threats against migrant workers.
In 2022, the company reached a settlement agreement with workers, compensating each affected employee with amounts ranging from 50,000 to 200,000 ringgit ($10,660 to $42,644) based on their length of service.
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