20th December 2024: “Seven months of unpaid wages: ‘When will I be free?'” Malaysia: Report on Kawaguchi (Sony, Panasonic, Daikin and Hisense/Sanden supplier) released by PARC
Kawaguchi Manufacturing SDN BHD, a plastic parts manufacturer in Malaysia, has been found to have engaged in practices that could lead to forced labor, including long-term unpaid wages and confiscation of visas for migrant workers. The company has been found to produce parts for major Japanese companies such as Sony, Panasonic, and Daikin, as well as parts for the Hisense Group.
Original Source: Parc Research – December 20, 2024
The involvement of these labor practices in the supply chains of Japanese companies is not only a serious violation of domestic and international guidelines on business and human rights, but the problem lies in the attempts to resolve it.
After the problem was discovered, each end product manufacturer conducted an investigation and even acknowledged the existence of the problem, but Sony and Panasonic stopped doing business with Kawaguchi one after another without bringing about any solution to the situation, and then Daikin also stopped production. Although these Japanese companies had been able to obtain cheap parts for many years thanks to exploitative labor, when the problem came to light, they decided to withdraw without contributing to the settlement of unpaid wages for the workers.
This kind of irresponsible withdrawal also violates domestic and international guidelines for multinational corporations. Each company should make good faith efforts to improve the situation, and evading responsibility by suspending transactions is not permitted.
With the end of the year fast approaching, workers are on the verge of being left out in the cold with months of unpaid wages. We call on Japanese companies to act responsibly, even now.
The Pacific Asia Resource Center (PARC) has translated and published a report by Andy Hall, an expert on migrant labor, which describes the illegal labor practices at Kawaguchi, the voices of the workers, and the history of the problems occurring locally. Please download the full report from the link below.
Report (Japanese language): “Seven months of unpaid wages: ‘When will I be free?'” – Report on allegations of forced labor and exploitation at Kawaguchi Manufacturing SDN BHD – https://files.parc-jp.org/docs/kawaguchi_report_JP1220.pdf
PARC will continue to closely monitor the situation on the ground and will continue to work to urge Japanese companies to settle as soon as possible the unpaid wages owed to workers who have been in business with the company up until now.
Unfortunately, there are many other such illegal labor practices in Asia. Please support PARC’s activities by becoming a member, donating, or becoming a monthly supporter so that we can continue to investigate, disseminate information, and support the movement to win workers’ rights.
Additional Background Readingon Kawaguchi:
Malay Mail 19th Dec 2024: Malaysian Labour Dept to assist Kawaguchi workers securing new jobs, firm agrees to settle over RM3m backdated pay in agreement described as ‘offensive,’ global buyers Sony, Panasonic and Daikin remain silent
Malay Mail 18th Dec 2024: Electronics maker faces Labour Dept inquiry Over RM806,310 in unpaid wages, substandard housing to Bangladeshi workers
NST 17th Dec 2024: 8 investigation papers opened against Kawaguchi, accomodation providers
ABC 15th Dec 2024: Sony, Panasonic ‘cut and run’ from Malaysian supplier Kawaguchi accused of wage theft
18th Oct 2024: Sony admits own audit found probable labour code violation by Malaysian contractor Kawaguchi
19th Sept 2024 Malay Mail: Panasonic, Sony and Daikin vows probe into forced labour claim against Malaysian contractor
17th Sept 2024 FMT: Japanese electronics giants probe Malaysian supplier Kawaguchi after delayed salary payments
BHRRC 17th Sept 2024 – Malaysia: Plastics co. supplying to Panasonic, Sony & Daikin accused of violating rights of Bangladeshi workers; incl. indicators of forced labour; incl. cos. responses
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
Additional Background Reading on Bangladesh Malaysia migration syndicate:
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 Focus Malaysia 25th June 2024: Migrant workers’ activist – Malaysia doesn’t deserve Tier 2 upgrade in 2024 US human trafficking report
See also 25th June 2024: Home Ministry welcomes country’s Tier 2 upgrade on Trafficking in Persons 2024 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
FMT 3rd June 2024: 17,000 Bangladeshi workers stranded, Dhaka pleads for time
Daily Star 3rd June 2024: 16,970 Bangladeshis failed to reach Malaysia for mismanagement, more destitution and modern slavery will result
Daily Star 3rd June 2024 – Bangladeshi Migrant Worker Exploitation and Malaysian Labour Market Alleged Criminal Syndicate: The agencies picked by KL to blame, Bangladesh tells UN OHCHR
Daily Star 2nd June 2024: Controversial recruitment system to stay 3 more years
Daily Star 2nd June – Jobs in Malaysia: Mismanagement left over 3k workers with no ticket to KL
Daily Star 1st June 2024: Must history repeat itself with the Malaysian labour market’s alleged criminal syndicate trafficking Bangladeshi migrant workers for forced labour
MALAYSIAKINI June 1st 2024: Controversial worker management system BESTINET gets new lease, sources say
1st June 2024 Kalerkantho: Malaysia’s dream ends in deprivation for Bangladeshi migrant workers of criminal syndicate
FMT 31st May 2024: Expect Bangladeshi workers to be stranded and at high risk of modern slavery following Malaysian migration management deadline rush, warns activist
No Ko SCMP 31st May 2024: Malaysians shocked by thousands of Bangladeshis crowding at airport to beat deadline for legal work, as UN and activists warn of increased modern slavery risks
