Merida is implementing various measures to improve its labour practices, following the blockade on Giant Bicycles by the US due to allegations of forced labour.
In a statement released today, Merida says it complies with Taiwan’s labour laws, but it has emphasised its commitment to “internationally recognised labour standards”.
Merida says it will implement a zero-fee recruitment policy for migrant workers effective from 1 October. In Taiwan, labour laws allow brokers to charge fees to migrant workers, but this can lead to debt bondage, which is an indicator of forced labour. Now, Merida will not allow brokers to charge fees to new migrant workers.
Furthermore, Merida says no migrant workers will have to pay monthly service fees to brokers, and any such costs will be covered by Merida.
“In addition, we are in the process of creating a reimbursement plan to compensate migrant workers for their earlier recruitment costs. Our goal is to complete the reimbursement by October 25, 2025,” Merida says.
“We will work with our recruitment partners to make sure these standards are upheld and will continue to monitor them to ensure this is the case. Employee welfare is further supported through routine check-ups and ongoing feedback mechanisms, including anonymous mailboxes and satisfaction surveys, to drive continuous improvement,” Merida told BikeRadar.
Merida’s statement on its labour practices follows the announcement last week that the US Customs and Borders Protection (CBP) said it would detain bicycles, accessories and parts manufactured by Giant in Taiwan after it found indicators of forced labour, including debt bondage.
The ban is the first of its kind on a Taiwanese manufacturer and Giant is now taking steps to resolve the embargo. It has formally engaged with CBP through its US legal counsel and will arrange an official meeting in the near future.
Giant said it is “firmly committed to upholding human rights and labour protections. Since January 2025, we have fully implemented a Zero Recruitment Fee Policy, under which all recruitment, agency, and government-related fees for newly hired migrant workers are fully covered by the company. By the end of 2024, we completed upgrades to employee housing, providing a safer and more comfortable living environment.”
The investigative journalist Peter Bengtsen uncovered the labour conditions in Taiwan’s bicycle industry after he and his team conducted more than 200 interviews with migrant workers between 2022 and 2025.
“The risk of debt bondage is the rule, not the exception, for migrants employed in Taiwan’s bicycle and other industries,” Bengtsen told BikeRadar.
“For decades, workers hired from abroad have paid exorbitant fees to home-country recruiters and Taiwanese labour brokers for jobs and services. As a result, workers borrow significantly from banks and money lenders, often at excessive interest rates, and thereby risk debt bondage while working in Taiwan to pay off loans,” he added.
US legislation allows authorities to stop imports at the border if forced labour is suspected.
Last year, the EU passed legislation that, from 2027, will allow authorities to prohibit the sale, import and export of goods made using forced labour.
