One of the largest bicycle makers in the United States has been barred from importing products after being accused of using forced labor.
U.S. Customs and Border Protection said Giant Manufacturing violated workers’ rights by subjecting them to poor work and living conditions, withholding pay and forcing excessive overtime. CBP said products made by Giant and imported into the U.S. will be detained.
The withhold release order follows a report in Le Monde that alleged Giant required migrant workers to pay large recruitment fees — a practice the company says it ended late last year. The report also alleged Giant subjected workers to crowded and unsanitary living conditions and used manipulative management practices, including pay reductions and threats of deportation.
Giant is a Taiwan-based company and, according to Mordor Intelligence, is the third-largest bicycle manufacturer in the United States.
“Importers have a responsibility to do their due diligence and know their supply chains,” said Susan S. Thomas, acting executive assistant commissioner of CBP’s Office of Trade. “CBP will continue to investigate allegations of forced labor and take action when we find it in U.S. supply chains.”
In response to the order, Giant said it has “firmly committed to upholding human rights and labor protections” and has completed upgrades to employee housing and living conditions.
“Giant Group has established internal supervision mechanisms and third-party audits, and continues to conduct due diligence to ensure compliance with international standards. We will contact CBP to file a petition to seek the revocation of the WRO and explain that the company has already adopted appropriate measures,” the company said.
