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The decision by Canada’s public services and procurement department was made effective last November, according to Reuters.
Any further decision will follow an audit report over the company’s labour practices, the department said.
“Based on the seriousness of the allegations and expected timelines for the final audit results, the government of Canada has decided, and Supermax Healthcare Canada has agreed, to terminate by mutual consent the two existing contracts for the supply of nitrile gloves,” the department told Reuters in an emailed statement.
“Forced labour is a significant and unacceptable problem in global supply chains, and we take all allegations of such conduct very seriously,” the Canadian authority said on its website in November 2021.
“The government of Canada is committed to ensuring that it does not do business with companies that employ unethical practices, either directly or within their supply chains.”
Meanwhile, Bernama’s attempt to reach Supermax for comment was unsuccessful.
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