Question Period Note: Supermax Forced Labour Allegations

Since April 2020, Supermax Healthcare Canada was awarded contracts for the supply of nitrile gloves. Globally, the majority of nitrile gloves are manufactured in Malaysia, where there have been noted instances of forced labour. Based on allegations of forced labour, Canada and Supermax Healthcare Canada have mutually agreed to terminate two existing contracts for nitrile gloves manufactured in Malaysia.

Note: All questions regarding the import prohibition of goods that are mined, manufactured or produced by forced labour should be directed to the Minister of Public Safety, as the Minister responsible for the Canada Border Services Agency (CBSA)

• The Government is committed to protecting Canadians from COVID-19
  • The Government of Canada is also committed to addressing the risk of forced labour and human trafficking in federal procurement supply chains through the National Strategy to Combat Human Trafficking
  • In December 2020, the Government was made aware of allegations of forced labour practices against its partner and supplier Supermax Corp., of Malaysia, and pending results of an independent audit
  • Based on the seriousness of the allegations and expected timelines for the final audit results, Canada and Supermax Healthcare Canada have mutually agreed to terminate the two existing contracts for nitrile gloves
  • PSPC has secured more than 2.7 billion articles of various personal protective equipment of which the majority have been received
  • PSPC continues to leverage domestic supply chains wherever possible, with more than 40% of the total value of personal protective equipment contracts going to domestic companies

Since April 2020, Supermax Healthcare Canada was awarded contracts for the supply of nitrile gloves. Before being terminated there were two active contracts providing for the delivery of 113 million pairs of gloves by March 2022.

In December 2020, it was brought to PSPC’s attention that there was possible forced labour issue with suppliers in Malaysia. PSPC reminded its glove suppliers of their obligations in regards to ethical practices and human rights. In January 2021, PSPC received attestation from Supermax Healthcare Canada confirming their commitment to ethical working conditions.

On October 21, 2021, PSPC learned that United States Customs and Border Protection issued an order that prohibits imports from Supermax Malaysia based on reasonable information that indicates the use of forced labour in the company's manufacturing operations in Malaysia.

In light of the allegation, PSPC asked Supermax Healthcare Canada to suspend all future deliveries until Canada was satisfied that its contracted gloves were produced without forced labor.

On December 16, 2021, Supermax Healthcare Canada provided Canada a summary response to the findings of the first of a series of four audit reports. This audit was conducted at the Malaysian sites by an independent firm. Canada reviewed the report and did not believe it had sufficient information to fully assess the matter. Rather than waiting for the full audit report, which is due in April 2022, on December 22, 2021, Canada and Supermax Healthcare Canada mutually agreed to proceed with a termination of contracts.

On January 24, 2022, the Government of Canada and Supermax Healthcare Canada terminated two existing contracts for the delivery of nitrile gloves by mutual agreement.

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