17th Sept 2024: FMT - Japanese electronics giants probe Malaysian supplier Kawaguchi after delayed salary payments

17th Sept 2024: FMT – Japanese electronics giants probe Malaysian supplier Kawaguchi after delayed salary payments

However, Klang-based Japanese electronics giant Kawaguchi Manufacturing Sdn Bhd has assured its workers that the delay will be resolved by the end of the year.

Sourced from: FMT – 17th September 2024 by Jason Thomas

PETALING JAYA: Sony, Panasonic and Daikin are looking into delayed salary payments and alleged human rights violations at its Klang-based supplier Kawaguchi Manufacturing Sdn Bhd.

Earlier this month, it was reported that hundreds of Bangladeshi workers employed by the plastics manufacturing company were allegedly not paid for up to six months, were forced to work seven days a week, subjected to exorbitant recruitment fees, and were housed in overcrowded and unhygienic accommodation.

International non-profit organisation Business & Human Rights Resource Centre (BHRRC) then invited Sony, Panasonic and Daikin to confirm whether they still sourced components from Kawaguchi.

It also urged the companies to disclose any human rights due diligence that they had undertaken prior to entering into contracts with suppliers, and disclose the steps they had taken to investigate and remedy the violations reported.

In response, the three Japanese electronics firms all confirmed they sourced from Kawaguchi, adding that they were looking to find appropriate solutions to the issues raised by the workers. The responses were posted on BHRRC’s website today.

‘Regarding the supplier, we will work with the relevant government authorities and organisations to conduct a thorough fact-checking investigation,’ said the senior general manager of Sony Group Corporation’s sustainability department, Mitsu Shippee.

Shippee said it would then take appropriate measures in accordance with Sony’s supply chain code of conduct – which explicitly prohibits the use of forced labour or collection of recruitment fees in its facilities and supply chain.

‘In the event that a supplier is confirmed to have committed a major violation of the code, Sony will take appropriate countermeasures, including requesting for the implementation of corrective actions and terminating business with the supplier.’

Tamotsu Namiki from Daikin Industries Ltd’s human rights promotion office said Daikin Malaysia is still purchasing from Kawaguchi and has not decided whether to terminate its contract with the company.

Namiki said Daikin Malaysia visited Kawaguchi’s premises twice this month to discuss the allegations with Kawaguchi, after which it received a written commitment from the company that it would pay its workers’ salaries based on a schedule.

‘Daikin Industries Ltd and Daikin Malaysia have been continuously monitoring whether such commitments are being kept,’ said Namiki.

‘We will make serious efforts to improve the process of human rights due diligence… to ensure that human rights will be respected.’

In its response, Panasonic Holdings Corporation said it is investigating the issue and will consider taking necessary measures in cooperation with relevant Malaysian authorities and other stakeholders.

Panasonic said this includes requesting Kawaguchi to take ‘corrective action’ to safeguard the interests of the impacted workers.

In a Malaysia Gazette report on Sept 9, Kawaguchi president George Wang assured 200 foreign workers and 40 local workers that their salary delays would be resolved by the end of the year.

YouTube Malaysian Gazette report

Wang explained that the delay in salary payments was unavoidable due to a surge in orders from its two main clients, Panasonic and Daikin.

‘We had to make advance payments to accommodate the unexpected surge in orders from major electronics players like Panasonic and Daikin. We had to inject significant funds to purchase raw materials to meet our customers’ orders,’ he said.

Wang also said he had contacted the company’s customers to explain the rationale behind the temporary delay in paying the workers their salaries.

‘They have accepted our explanation, and no immediate action is required from their side. Our business operations continue as usual,’ Wang had said.

17th Sept 2024: BHRRC – Malaysia: Plastics co. supplying to Panasonic, Sony & Daikin accused of violating rights of Bangladeshi workers; incl. indicators of forced labour; incl. cos. responses

We are all living a miserable life in Malaysia, not being able to eat, pay our debts and send money to our families.

Migrant worker, Kawaguchi Manufacturing

Sourced from: Business and Human Rights Resource Centre – 17th September 2024

In September 2024, it was reported that over 200 Bangladeshi workers employed by Kawaguchi Manufacturing, a plastics company in Malaysia, have been experiencing human rights violations, including several indicators of forced labour. Kawaguchi allegedly supplies to major electronics firms, including Panasonic, Sony and Daikin, according to the Malay Mail.

Free Malaysia Today reported that migrant rights activist Andy Hall shared interviews with workers alleging labour rights abuse, including:

Wage theft: the workers say they have not been paid for six months, which has caused distress on both them and their families back home.
Recruitment fee charging: the workers say they were charged high fees for their jobs and took out loans to cover the fees.
Denial of leave: the workers say they are forced to work seven days a week without public holidays or overtime pay. In one video, a worker says he is forced to work 12 hours a day.
Unsuitable living conditions: the workers say they live in overcrowded and unhygienic accommodation.
Failing to renew visas: some of the workers are allegedly without visas as the company failed to renew them. This has left them undocumented and vulnerable.
Intimidation: the workers who raised concerns have been threatened with detention, deportation and police action. Four workers have been sent back to Bangladesh “as punishment”, according to Free Malaysia Today.
Passport confiscation: the company allegedly withheld workers’ passports.

The Selangor labour department is now investigating the allegations.

The Malaysian based plastics industry, which is indeed an essential part of many international companies and brands globally supply chains and finished products, currently consists of conditions prevalent for systemic migrant forced labour.

Andy Hall, migrant worker activist

In September, the Business & Human Rights Resource Centre invited Daikin, Panasonic, and Sony to respond to the findings, and: a) confirm whether they still source from Kawaguchi Manufacturing, and/or the date when they stopped sourcing from the company; b) disclose any human rights due diligence they undertake prior to entering into contracts with suppliers and when monitoring working conditions at suppliers; c) disclose the steps they have taken to investigate the abuse reported; and, d) disclose the steps they have taken to remedy workers for the fee-charging, intimidation of protesting workers, and wage theft.

Daikin, Panasonic and Sony’s responses can be read in full below.

The Resource Centre was not able to contact Kawaguchi Manufacturing to invite a response to the allegations; if a response is received in future this page will be updated accordingly.

Company Responses

Daikin View Response

Sony View Response

Panasonic View Response

Timeline

Panasonic response to allegations of labour rights abuse of Bangladeshi workers at Malaysian supplier Date:17 Sep 2024 Content Type:Company Response
Sony response to allegations of labour rights abuse of Bangladeshi workers at Malaysian supplier Date:13 Sep 2024 Content Type: Company Response
Daikin response to allegations of labour rights abuse of Bangladeshi workers at Malaysian supplier Date:12 Sep 2024 Content Type:Company Response
HR Ministry opens probe into slave labour claims against contractor for Sony, Panasonic and Daikin Date: 6 Sep 2024 Content Type:Article
Labour dept probes Bangladeshi workers’ forced labour claims Date:5 Sep 2024 Content Type:Article

20240912_Daikin RESPONSE.pdf Download

20240913_Sony Response.pdf Download

20240917_Panasonic_Response_.pdf Download

6th Sept 2024: Malay Mail – Malaysian HR Ministry opens probe into slave labour claims against contractor (Kawaguchi) for Sony, Panasonic and Daikin

KUALA LUMPUR, Sept 6 — The Manpower Department has opened investigation papers into allegations of slave labour practices by Kawaguchi Manufacturing Sdn Bhd the contractor that supplies workers for Japanese electronics giants Sony, Panasonic and Daikin.

Malay Mail understands that the company’s office was raided by the Port Klang Manpower Office (PTK) on September 3 following a complaint by a migrant worker rights activist, Andy Hall, who has worked on multiple cases of foreign worker abuses in the country.

Original Source: Malay Mail by Syed Jaymal Zahiid – 6th September 2024

Following the raid, the department said it found evidence that Kawaguchi has not been paying over 200 of their Bangladeshi workforce since April this year. The department also found that the company had withheld the workers’ passports, which is a violation of labour laws and an indicator of slave labour practices.

“PTK Port Klang had carried out an investigation on the premises on 3.9.2024 and found that (Andy Hall’s) complaints had basis.

The employer had failed to pay their workers’ salaries from April to August 2024 as well as discovering that passports of their foreign workers had been withheld,” the office said in an internal memo sighted by Malay Mail.

The investigations into Kawaguchi Manufacturing is the latest in the series of foreign worker-exploitation cases involving Malaysian contractors and companies, several of which have been flagged for abuses that activists alleged to amount to “modern day slavery”.

Some of these companies have been slapped with export bans while Malaysia has had its rating downgraded to the lowest tiers by the US Department’s anti-human trafficking report.

The plight of Kawaguchi’s foreign workforce was first brought to attention in late July by the Bangladeshi press. Some of the workers who were interviewed said they were forced to work for 12 hours despite not being paid.

Many were afraid to speak up because their passports were withheld.

Malay Mail understands that the company’s top management has been served the F Form and was summoned to appear before PTK officers on September 5, alongside all the relevant documents. It is unclear what the outcome was.

Meanwhile, Kawaguchi’s clients Sony EMCS Malaysia, Panasonic Malaysia and Daikin Malaysia have been notified, according to Human Resources Ministry sources, and Hall told Malay Mail that the three companies responded saying they were not aware about what’s happening at Kawaguchi.

PTK Port Klang has asked representatives from the companies to meet on September 12, a source familiar with the matter said.

Kawaguchi is an international plastic injection molding company and supplies among others plastic components for electronic products such as LCD televisions and microwaves.

Hall alleged working conditions in the Malaysian plastic production industry are rife with practices amounting to migrant forced labour.

“The Malaysian based plastics industry, which is indeed an essential part of many international companies and brands globally supply chains and finished products, currently consists of conditions prevalent for systemic migrant forced labour,” the activist said.

“The industry is surely a primary target for the US CBP and its forced labour related trade enforcement sanctions in the future if things don’t improve.”

Malay Mail could not independently verify Hall’s allegations.

An online review about Kawaguchi company

5th Sept 2024: FMT – Malaysian labour dept probes Bangladeshi workers’ forced labour claims

PETALING JAYA: The Selangor labour department is investigating claims of unpaid wages and other forced labour indicators by a group of Bangladeshi workers at a factory in Klang that supplies components to major electronics companies.

The workers allege that they have not been paid for months and forced to work 12-hour shifts everyday.

Original Source: FMT by Jason Thomas – 5th September 2024

asrama — The workers alleged that they are forced to live in overcrowded dormitories, with poor toilet facilities and living conditions.

In an e-mail to the company and its major customers (my addition: Daikin, Panasonic and Sony), migrant rights activist Andy Hall shared a report based on interviews with seven workers which details their allegations of forced labour.

The report claims that the workers have not been paid for up to six months, causing them and their families severe distress.

They also allegedly paid exorbitant recruitment fees through loans, worsening their financial difficulties.

According to the report, the workers are forced to work seven days a week, including public holidays, without overtime pay.

The report also claimed the workers’ lived in overcrowded dormitories, with many sharing a single room. It also said the toilet facilities provided to workers are unhygienic, contributing to their poor living conditions.

Some workers are allegedly working without valid visas due to the company’s failure to renew them, leaving them vulnerable and undocumented, said the report.

In addition, workers who raised concerns about unpaid wages or working conditions were allegedly threatened with detention, deportation, or police action. Four workers were allegedly sent back to Bangladesh as punishment.

A source from the human resources ministry told FMT the Selangor labour department is looking into the claims, while another source close to the matter said the department is preparing a report on the workers’ alleged mistreatment.

In a memorandum sent to the Bangladesh high commission in Kuala Lumpur on Monday, some of the workers said they have not been paid on time since they joined the company last November.

The memorandum also said the workers’ employers threatened to send them back to Bangladesh whenever they raised the issue of their unpaid salary.

FMT has seen videos of the workers’ allegedly overcrowded accommodation and unsanitary toilet facilities. In another video, a worker claimed he was forced to work 12 hours every day.

He said a group of workers recently protested outside the company’s office over five months of unpaid salaries, after which the company cut off their water, electricity, and gas supplies.

FMT has reached out to the Bangladesh high commission in Kuala Lumpur for comment and is withholding the name of the company pending a response.

31st Aug 2024 Somoy News: Bangladeshi workers in Malaysia remain unpaid for 5 months

Original Source: Somoy News – 31st August 2024

Over 200 Bangladeshi workers employed by Kawaguchi Manufacturing Sdn Bhd in Malaysia have been left unpaid for five consecutive months, sparking protests and a plea for intervention from the Bangladesh Embassy.

The workers, who are subjected to gruelling 12-hour shifts, including three hours of overtime, are facing severe financial hardship.

The workers, who migrated to Malaysia in November 2023 in search of better employment opportunities, were initially paid in phases during the first four months of their employment.

However, the company has since withheld their wages, causing significant distress among the workers, many of whom had sold their possessions or taken high-interest loans to finance their move abroad.

On Friday, 30th August, the workers staged a protest outside the company’s premises, demanding their overdue wages. In response, the company reportedly countered with threats and took punitive actions against some workers, including levelling false charges and repatriating them to Bangladesh.

Four workers were blacklisted and sent back home, with a five-year ban on re-entering Malaysia.

The workers, who are subjected to gruelling 12-hour shifts, including three hours of overtime, are facing severe financial hardship. “We were assured that we would be paid our salary regularly and on time, but the company is breaching their promises,” said one of the affected workers.

“We are unable to repay the debts we took on in Bangladesh, and despite informing the company of our dire situation, they have disregarded our concerns and threatened us with deportation.”

The workers have now sought the assistance of the Bangladesh Embassy in Malaysia, hoping for a resolution to their plight.

Malaysia remains a popular destination for Bangladeshi workers seeking employment abroad, with the country being one of the largest sources of remittances for Bangladesh.

This incident highlights the vulnerabilities faced by migrant workers and raises concerns about their treatment and rights in foreign employment. The affected workers and their families now await action from both the company and the relevant authorities to secure their rightful wages and ensure fair treatment.

Additional Background Reading:

6th Sept 2024: Malay Mail – Malaysian HR Ministry opens probe into slave labour claims against contractor (Kawaguchi) for Sony, Panasonic and Daikin

5th Sept 2024: FMT – Malaysian labour dept probes Bangladeshi workers’ forced labour claims

31st Aug 2024 Somoy News: Bangladeshi workers in Malaysia remain unpaid for 5 months

6th July 2024: Migration to Malaysia – Money of all workers who failed to depart as part of alleged criminal syndicate trafficking Bangladeshi workers for forced labour in Malaysia to be refunded

FMT 7th July 2024: Use independent experts for migrant system audit, says anti-graft group

MALAYSIAKINI 6th July 2024 C4CENTER COMMENT: Massive migrant labour recruiting issues, cops must probe

NST 6th July 2024: Probe foreign labour recruitment misgovernance highlighted by PAC, govt urged

FMT 6th July 2024: Anti-corruption watchdog demands action over govt-Bestinet deal

Malay Mail 6th July 2024: Home minister says will review PAC criticism over migrant worker system launched without contract

Star 5th July 2024: Mutual termination clause in Bestinet contract puts Putrajaya in ‘challenging position’, says Public Accounts Committee report

4th July 2024 BSS News – Expatriates Minister Shofiqur directs returning money to workers who failed to go to Malaysia

4th July 2024 New Age – Bangladeshi Agencies must refund workers unable to go to Malaysia by July 18: ministry

FMT 4th July 2024: Govt urged to heed PAC’s call on migrant worker system

Star 4th July 2024: Human Resources Ministry to conduct internal audit

Star 4th July 2024: PAC uncovers serious flaws

FMT 3rd July 2024: Decide quickly on direction of migrant worker system in Malaysia, Public Accounts Committee tells govt

Vibes 3rd July 2024: Foreign worker management system operating 6 years without a contract

3rd July 2024: The Edge – Public Accounts Committee chastises govt for running foreign worker recruitment system for six years without contract

Malaysiakini 3rd July 2024: BESTINET Probe – Public Accounts Committee chief says ‘Datuk Amin’ not among witnesses

3rd July 2024: The Star – Bestinet told Public Accounts Committee unauthorised users were approved by HR Ministry personnel, report shows

FMT 2nd July 2024: Tenaganita letter to Editor – TIP upgrade no cause for celebration just yet

30th June 2024: Somoy News – Bangladeshi High Court orders disclosure of action on Malaysia migrant worker scam (with 500,000+ victims) in 7 days

Malay Mail 25th June 2024: Home minister sees good things for Malaysian businesses after upgrade to US trafficking ranking

The Star 25th June 2024: Malaysia will strive to reach Tier 1 in Trafficking In Persons report, says Saifuddin

Scoop 25th June 2024: Nation’s improved Tier 2 human trafficking ranking ‘dangerously misleading’, says activist

See also MALAYSIAKINI 25th June 2024: M’sia doesn’t deserve Tier 2 in US human trafficking ranking – activist

Daily Star 26th June 2024: Rights activists criticise Malaysia’s improved ranking

See also Benar News 24th June 2024: Malaysia advances in US State Dept’s world rankings for anti-human trafficking efforts

See also FMT 24th June 2024: Malaysia upgraded to Tier 2 in US human trafficking report

See also Benarma 25th June 2024: Malaysia upgraded to Tier 2 in U.S. TIP Report

See also FMT 25th June 2024: Home ministry open to working with NGOs against human trafficking

See also Star 25th June 2024: Malaysia upgraded to Tier 2 in latest Trafficking in Persons report

SCMP 25th June 2024: Malaysia’s upgrade in US human trafficking index decried as ‘disappointing’ amid migrant worker woes

24th June 2024 Exclusive Analysis: CNA – Extension of Malaysia’s controversial migrant labour ecosystem (involving BESTINET) a blow to PM Anwar’s reform agenda

See New Strait Times 24th June 2024: Malaysian Government Forms Committee to Review Terms of Bestinet’s 3 Year Extension

FMT 24th June 2024: Bestinet contract extended, confirms Saifuddin – ‘Home minister Saifuddin Nasution Ismail says the Cabinet decided in principle on the extension ‘several weeks ago’.

Malay Mail 24th June 2024: Home Minister – Bestinet keeps foreign worker system contract for three more years, but with stricter terms

Bernama News 24th June 2024: Committee set up to Peruse Terms and Conditions of BESTINET Contract

FMT 24th June 2024: Bestinet to surrender control of workers management system under new deal

FMT 24th June 2024: Bestinet should be phased out eventually, says ex-MP

Malaysianist 18th June 2024: Minting money from a migrant services monopoly (click to subscribe for full article)

9th June 2024 Daily Star – Labour Recruitment from Bangladesh to Malaysia: Syndicate wins, migrants suffer, country loses(excellent summary how bad triumphed, carnage resulted – Bangladesh and Malaysia MUST be downgraded to Tier 3 in the upcoming U.S. TIP report!)

Dhaka Tribune 11th June 2024: Deadline extended for Malaysia migration hurdle complaints

Business Standard 11th June: Unrest within Baira over Malaysian labour market, ruckus in AGM as committee members assaulted

Observer 9th June 2024: Around 2,900 complaints lodged by deprived Malaysia-bound migrants

Malaysianist 6th June 2024: The fat cat ruling the Malaysian migrant services roost(allegations of systemic corruption involving Malaysia’s migrant worker management systems – click to subscribe)

Business Standard 5th June 2024: Govt to take action over failure in sending workers to Malaysia: PM Hasina

4th June 2024 Daily Star (Op Ed): Break the syndicates, not the dreams of Malaysia-bound workers

SCMP 4th June 2024 – In Malaysia, business and human rights must go hand in hand, UN rights chief says in KL press conference against backdrop of systemic migrant worker abuses

New Straits Times 4th June 2024: Human rights-centric practices essential for foreign investment, says UN

4th June 2024 Business Standard: NHRC orders probe into alleged embezzlement of Tk150cr from Malaysia-bound workers

4th June 2024 Business Standard: 47,809 Bangladeshis flew to Malaysia in May – highest since labour market reopened in 2022

Daily Sun 3rd June: IRREGULARITIES IN MIGRATION TO MALAYSIA – Recruiting agencies never made accountable(good historical summary)

Business Standard 4th June 2024:Dhaka-20, Feni-2 MPs deny allegations of involvement in embezzling money from Malaysia-bound workers

SCMP 3rd June 2024: ‘Nothing left for me’ as thousands of Bangladeshi workers lose everything in failed bid to work in Malaysia

Daily Star Editorial 3rd June 2024: Must our migrants pay the price every time?

Prothomalo 3rd June 2024 – Bangladesh Labour market: Hapless workers lose all vying to go to Malaysia

Daily Sun 3rd June 2024: IRREGULARITIES IN MIGRATION TO MALAYSIA: Recruiting agencies never made accountable