FMT 23rd Feb 2025: Two-thirds of Malaysia’s ex-Kawaguchi company employees have found new jobs but remain in situation of acute modern slavery, activist reveals
23 Feb 2025
Andy Hall says 181 of the 251 foreign workers secured jobs between December and early February.
PETALING JAYA: More than two-thirds of the 251 foreign workers previously employed by Kawaguchi Manufacturing Sdn Bhd have found new jobs, an independent migrant worker rights activist has revealed.
Andy Hall said of the 181 successful workers, 85 received their new placements through the labour department and local Port Klang community back in December.
He added that on Feb 6, a Johor-based manufacturer was given the green light to hire another 96 workers. The workers are expected to start work soon, with final approvals from related government departments expected within days.
Another 26 foreign workers are close to securing new jobs, Hall added, with a local Malaysian agent providing voluntary on-the-ground support to expedite the change of employer process.
Hall said that as at early January, 23 of the 251 workers — some of whom are owed as much as RM26,000 — had returned to Bangladesh after receiving RM1,000 and their flight tickets from Kawaguchi.
Meanwhile, the Bangladesh High Commission is assisting with the repatriation of 11 others, whose immigration status is irregular.
“The fact that almost all who are still in the country are now, or will soon be, legally employed is good. And the fact that the workers didn’t get arrested or deported, that’s good too,” he told FMT.
However, these workers remain in “severe debt bondage”, Hall said, with some having racked up debts of RM25,000 or more, in addition to being owed up to RM26,000 in unpaid wages for almost a year.
According to Hall, the workers were required to pay recruitment intermediaries exorbitant fees to secure jobs in Malaysia.
As they were not paid their salaries, many of these workers had to purchase food and basic necessities from sundry stores near their Port Klang hostels on credit in order to survive.
“Their situation was and indeed remains dire generally,” Hall said.
On Dec 18, it was reported that Kawaguchi had agreed to pay the 251 workers almost RM3 million in overdue salaries. Meanwhile, the Putrajaya and Port Klang labour offices agreed to arrange for them to be employed by other companies.
The agreement was reached following negotiations which took place five days after the workers staged a peaceful protest outside the company’s Port Klang factory to demand payment.
In January, FMT reported that the 251 foreign workers, who went seven months without pay last year, were planning to drag two prominent Japanese companies to court in Washington DC.
At the time, Hall said the workers were planning to sue the companies for exploitation, mistreatment, and non-payment of wages. The suit is said to be still “pending”.
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All the latest on the Kawaguchi case, including company responses and timeline, available on the BHRRC website outlined below and at https://www.bhrrc.org/en/latest-news/malaysia-plastics-co-supplying-to-panasonic-sony-daikin-accused-of-violating-rights-of-bangladeshi-workers-with-indicators-of-forced-labour-incl-cos-responses/
*International Trade Today January 15, 2025 Vol. 41, No. 10: Foreign Workers to Sue Sony and Panasonic Over Forced Labor *
Foreign workers from Bangladesh are preparing to sue Sony and Panasonic in U.S. court over forced labor conditions at their former employer in Malaysia, Kawaguchi Manufacturing, a plastics supplier for the two companies.
The workers are alleging “exploitation, mistreatment, and non-payment of wages,” migrant worker rights activist Andy Hall said in a blog post.
Additionally, he alleges that the workers were forced to pay recruitment fees and had their passports taken away by the company.
Hall already has submitted a trade violation complaint with CBP.
The companies, which confirmed the allegations of forced labor at Kawaguchi in December (see 2412060061), offered to pay the workers $4,400 each, which would not be enough to cover the recruitment fees.
“A number of workers are still in significant debt and at risk of debt bondage,” Hall said.
The lawyer representing the workers, Terrence Collingsworth of International Rights Advocates, said that he is “frankly disgusted” by the companies’ lack of responsiveness, but that he is sending a third letter this week to try to settle the matter out of court, not having received replies to his first two letters.
“There’s no question that we will file a case [in court] if they don’t wish to be more constructive,” Collingsworth said.
Collingsworth also is appealing a decision by the Court of International Trade that his organization doesn’t have standing to challenge CBP’s inaction in responding to a petition to ban cocoa from Cote d’Ivoire (see 2408160009 and 2408080049).
“The companies were hoping to just pay the recruitment fees. But they worked under forced labor conditions, they were trafficked and are owed compensation,” Collingsworth said.
“My interest is getting the workers a reasonable amount of money in addition to the [$4,400] so they can move on.”
ABC News: Over 200 migrant workers at a plastics factory in Malaysia that supplies to Sony and Panasonic haven’t been paid for over six months
Forced overtime, withheld passports and dirty living conditions are other abuses that have been raised to the Japanese electronics giants.
After investigating the abuses they are severing ties with the company. But activists say
“cutting and running” leaves workers in a more precarious position.
See ABC’s full story at https://www.instagram.com/reel/DD6WXQjJxj5/?igsh=amVwdDFmOTU4NWk5 and https://amp.abc.net.au/article/104705876
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OECD COMPLAINT FILED
Employees of Kawaguchi Manufacturing vs. Kawaguchi Manufacturing, Sony and Panasonic
Labour rights violations at supplier to Sony and Panasonic
https://www.oecdwatch.org/complaint/employees-of-kawaguchi-manufacturing-vs-kawaguchi-manufacturing-sony-and-panasonic/Date filed: 27 December 2024
Countries of harm
Current status
FiledSector
NCP
Allegations
On 27 December 2024, 251 workers of Kawaguchi Manufacturing Sdn. Bhd. (“Kawaguchi Manufacturing”), represented by lawyers, filed a complaint against Kawaguchi Manufacturing, Sony Corporation (“Sony”) and Panasonic Corporation (“Panasonic”) at the Japanese NCP. The complaint concerns alleged labour rights violations at Kawaguchi Manufacturing in Malaysia and their links to Sony and Panasonic.
The complainants allege that workers at Kawaguchi Manufacturing have experienced violations indicative of forced labour, including non-payment of wages, confiscation of passports, intimation and charging of high recruitment fees, among other labour rights violations. They allege that Sony and Panasonic, who sourced from Kawaguchi Manufacturing, failed to adequately engage with the workers and provide for remediation. They allege that Sony and Panasonic discontinued their business with Kawaguchi Manufacturing instead, which drove Kawaguchi Manufacturing to cease operations.
The complainants are seeking repayment of unpaid wages and recruitment fees and compensation for mental damage.
More details
Defendant
Company in violation
Other companies involved
Complainants
Affected people
Documents
- 27 December 2024 Complaint filed to Japan NCP Complainants
22nd Jan 2025: Industriall – Forced labour allegations at Kawaguchi, Malaysia
Forced labour allegations at Kawaguchi, Malaysia
22 January, 2025
Sourced from: https://www.industriall-union.org/forced-labour-allegations-at-kawaguchi-malaysia
IndustriALL is demanding that the Malaysian government act immediately to counter the serious labour rights abuses, including elements of modern slavery, at Kawaguchi Manufacturing in the country.
In September 2024, allegations against Kawaguchi Manufacturing surfaced through public media, later confirmed by the Malaysian Labour Department. These included wage theft, recruitment fee exploitation, denial of leave, poor living conditions, visa renewal refusals, intimidation tactics such as detention and deportation threats, and the withholding of migrant workers’ passports. Over 200 local and Bangladeshi migrant workers were reportedly affected by these violations of national labour laws, international labour standards, and human rights.
Major brands, including Sony, Panasonic and Daikin, which sourced from the company, are urged to provide remediation for the affected workers. Simply withdrawing operations without compensation risks worsening the workers’ plight, leaving them without wages or prospects for a better future.
Gopal Krishnam, secretary of IndustriALL Malaysia Council, says :
“This is as a serious violation of workers’ rights and human rights. A systemic approach from the government is urgently needed. Although reformed, Malaysia’s labour still contain weaknesses. There is a lack of law sanctions on employers’ interference in organizing, lack of access to the workplace when employers campaign against unions, and no protection for migrant workers who are often threatened with retaliation if they vote for unions.”
Alexander Ivanou, IndustriALL sector director says:
”IndustriALL calls on Kawaguchi Manufacturing to respect international labour standards and on brands like Panasonic, Sony and Daikin to ensure their supply chains are free from exploitation. There must be full and immediate remediation for the affected workers, including payment of all due wages and compensation for the moral harm caused by exploitation. Brands sourcing from Kawaguchi must take responsibility for supply chain practices and contribute to worker compensation if the employer defaults.
“The Malaysian government is called upon to ensure compliance with labour standards, establishing worker-driven remediation mechanisms that allow grievances to be reported and addressed without fear of retaliation. IndustriALL is urging the government to create a fast-response body to support victimized workers and implement robust policies to combat forced labour and exploitation in Malaysia.”
Photo credit: andyjhall.org
MalaysiaICT, electrical and electronicsHuman & trade union rightsWorkers’ rights
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FMT 7th Jan 2025: Kawaguchi foreign workers in Malaysia preparing to sue 2 prominent Japanese companies, Sony and Panasonic, in U.S. courts
By Andy Hall / 08/01/2025 /
FMT 7th Jan 2025: Kawaguchi foreign workers in Malaysia preparing to sue 2 prominent Japanese companies, Sony and Panasonic, in U.S. courts
Sourced from: https://www.freemalaysiatoday.com/category/nation/2025/01/08/kawaguchi-foreign-workers-to-sue-2-prominent-japanese-companies/
PETALING JAYA: The 251 foreign workers previously employed by Kawaguchi Manufacturing Sdn Bhd, who went seven months without pay last year, intend to drag two prominent Japanese companies to court in Washington DC.
Migrant worker rights activist Andy Hall says the 251 Bangladeshi nationals will sue the Japanese companies in the US.
Original Source: FMT by Sean Augustin – January 8, 2025
The workers, all Bangladeshi nationals, plan to sue the Japanese companies, alleging exploitation, mistreatment, and non-payment of wages, according to independent migrant worker rights activist Andy Hall.Workers allege they were forced by JTK officials to relocate to this non compliant accomodation and job on 30th Dec, and their passports were again from them
FMT is withholding the identity of the two firms.
Japanese companies, Sony and Panasonic, in U.S. courts
Hall also said the workers, who engaged a US-based lawyer in mid-December last year, will be seeking damages, compensation and an apology from these two Japanese companies.Andy Hall.
It is understood that the foreign workers will be seeking damages in excess of the sums they had requested from the Japanese companies during recent failed negotiations.
Hall is currently assisting prominent Washington DC-based lawyer Terrence P Collingsworth in coordinating the legal arrangements.
The suit will be filed in the US “hopefully in the next week or so”, he told FMT.Workers protest outside Kawaguchi factory on 20th Dec 2024
Hall said the foreign workers had on Dec 27, through Collingsworth, filed a formal complaint against the two firms with the Organisation for Economic Co-operation and Development in Tokyo, Japan.
Japanese companies, Sony and Panasonic not constructively engaging
“Neither of the Japanese companies is engaging constructively with Collingsworth, so we are forced to escalate the matter,” he said.
The two Japanese companies, he added, had previously offered to pay each worker only RM20,000 and had failed to support their re-employment, food or medical related needs over the recent festive period.
He said the RM20,000 sum was insufficient even to cover loans the workers had taken out to cover the recruitment fees and related expenses they incurred to come to work at the Kawaguchi factory.
“In fact, a number of workers are still in significant debt and at risk of debt bondage.
‘’It is unclear whether the labour tribunal agreement from Dec 18, which could theoretically see Kawaguchi pay workers their back wages by November 2025, will ever be paid. Hence the need to take more affirmative action on behalf of the workers,” said Hall.
On Dec 18, it was reported that Kawaguchi had agreed to pay its foreign employees their overdue salaries, with the Putrajaya labour office agreeing to arrange for them to be employed by other companies.
The company reached the decision five days after the workers held a peaceful protest outside the factory in Port Klang to demand the salaries owed to them.
FMT 31st Dec 2024: Kawaguchi workers ‘forced’ to relocate, claims activist (Sony, Panasonic and Daikin Malaysian supplier case)
Original Source: FMT by Faisal Asyraf – December 31, 2024
PETALING JAYA: A large number of foreign workers at Kawaguchi Manufacturing Sdn Bhd who have not received their wages for seven months have been “forced” to accept jobs at other companies, claims human rights activist Andy Hall.
Andy Hall says many of them have had to take on new jobs but were not able to negotiate the terms of their employment.Most of the affected foreign workers have moved out of a hostel where they have been staying. (Andy Hall pic)Some of the allegedly non compliant accomodation JTK forced Kawaguchi workers to relocate to on 30th Dec 2024
He told FMT that the workers were interviewed yesterday by at least six companies at the firm’s factory in Port Klang, but were in no position to negotiate the terms of their employment.
Hall claimed the workers had signed certain documents, believed to be employment contracts, but had yet to be given copies.
“The workers have not been given the terms and conditions of employment, and no other information has been made available,” he said, adding that the workers were left without any option but to take up whatever employment was given to them.
Hall said most of the affected workers were assigned jobs with various companies and were asked to leave their hostel on the same day.Kawaguchi worker protests 20th Dec 2024
He said a total of 82 workers were assigned to a plantation company in Cameron Highlands, and were expected to be transported to their new workplace today.
Only 18 workers have remained at their hostel in Port Klang, waiting for a flight back to Bangladesh.
“They (companies and authorities) came (yesterday) morning. We were shocked. We do not know what companies they are being sent to work for, or what their contracts and salaries are like,” said Hall.
He also claimed he had managed to get three internationally certified electronics and glove manufacturing companies to send official requests to the labour department expressing interest in taking in the displaced workers, but that the requests had not been acted on.
Hall said the workers were in fear of being exploited all over again.
“They are not comfortable taking on their new jobs as no agreement papers have been provided,” he said, but added that the workers did not appear to have a choice in the matter.
On Dec 18, it was reported that Kawaguchi had agreed to pay its 251 foreign employees their overdue salaries with the Putrajaya labour office agreeing to arrange for them to be employed by other companies.
The company reached the decision five days after the workers held a peaceful protest outside the factory in Port Klang to demand the salaries owed to them.
FMT has attempted to reach out to human resources minister Steven Sim for clarification.Kawaguchi worker protests 18th Dec 2024
26th December 2024: FMT – Penniless and unemployed, Kawaguchi’s foreign workers in Malaysia hoping to secure jobs before Ramadan (Sony, Panasonic & Daikin supplier case)
Original Source: FMT by Faisal Asyraf – 26th December 2024
KLANG: More than 200 foreign workers at Kawaguchi Manufacturing Sdn Bhd, who had endured seven months without salaries, are clinging to the hope of securing new jobs before the fasting month of Ramadan begins in February next year.
The workers are also hoping to secure a job so they can repay their debts. Currently unemployed and penniless, their futures remain shrouded in uncertainty despite a recent mediation where Kawaguchi agreed to settle the overdue salaries sometime next year, beginning with RM1,000 on Jan 15.
One of the workers, known as Farouk, 37, said they were having sleepless nights, citing trust issues from past experiences. They fear they might not be paid at all.Kawaguchi worker protests 18th Dec 2024
“And our situation will worsen if the labour office fails to get us new jobs before the fasting month,” he told FMT.
Farouk said they were currently surviving on meals sponsored by Daikin Industries Ltd.
However, the US$12,000 donated by the air-conditioner manufacturer was only sufficient to buy food until Dec 29, he said.
Another worker, Mohosin, said the RM1,000 he expects to receive next month would be used to settle the debt he had with a sundry shop located near their hostel.Kawaguchi workers protest in their accomodation on 20th Dec 2024
For the past seven months, Mohosin said he and other foreign workers had bought food and necessities from sundry stores on credit and had promised to pay the shopkeepers back by this month, having believed that their pay would come in by then.Foreign workers thanking Daikin Industries Ltd for the financial aid which allowed them to buy food. (Pic by Andy Hall)
As the money did not come, the shops had stopped allowing them to buy on credit, he claimed.
Some of these workers FMT spoke to owe the shopkeepers at least RM500.
Mohosin said once they had settled their debts with the sundry shops, they would be able to send money to their families back home in Bangladesh.
“Our families have to resort to taking loans to survive. Hopefully, once we get a new job, we will be able to clear the loans,” the 38-year-old said.Kawaguchi workers protests at the Kawaguchi company Dec 2024
Another worker, known as Nayem, 23, had mortgaged his family’s house to apply for a RM20,000 loan to come and work in Malaysia last year, with a huge chunk of the sum used to pay the agent there.
Time is running out for him as he’s unable to service the loan and help his family.
“I am the eldest of five siblings and they all rely on me to feed them. Usually, I would send my entire month’s salary and survive on overtime pay.”
Nayem is now worried that the bank will seize his house in Bangladesh and evict his family.
“Every day, I wait for some good news: that we will get a new job so that I can pay the loan and help my family.”
Last Thursday, it was reported that Kawaguchi had agreed to pay its 251 foreign employees overdue salaries for seven months.
The company reached the decision five days after the workers held a peaceful protest outside the factory in Port Klang to demand the salaries owed to them.
They had complained about unpaid wages totalling more than RM3 million since May.Kawaguchi worker protests 18th Dec 2024
20th December 2024: FMT – Air-con giant Daikin comes to rescue of unpaid modern slavery victims and foreign Kawaguchi workers (Kawaguchi supplies Sony, Panasonic and Daikin – Daikin smallest buyer)
Original Source: HERE by Sean Augustin – 20 December 2024
Daikin Industries Ltd gives US$12,000 to help 251 purchase food and aid items.Foreign workers protesting outside the Kawaguchi Manufacturing Sdn Bhd factory in Port Klang this evening. (Andy Hall pic)
PETALING JAYA: Daikin Industries Ltd, the world’s largest air-conditioner manufacturer, has contributed US$12,000 to the 251 foreign workers who went without salary for seven months.
The Osaka-based conglomerate said the funds were to purchase food and other related aid, according to migrant labour rights activist Andy Hall.
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FMT 22nd Dec 2024: Resolve migrant worker pay issues to avoid economic jeopardy, says ex-MP
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Hall said Daikin Industries informed him that they were “immediately releasing” the funds today.
He said he is finalising an agreement with a local charity to help with the distribution of the food to the workers at Kawaguchi Manufacturing Sdn Bhd tonight.
The donation comes in the wake of a protest by hundreds of workers outside the Kawaguchi factory in Port Klang earlier today, after they claimed food aid was halted last night.
FMT has contacted Kawaguchi for comment.
Hall said the sum would be “sufficient to cover the workers’ essential food costs, and some basic medical aid” for the next seven days.
The time frame coincides with the purported deadline for the labour department to legalise the foreign workers and find them new jobs.
He said he was informed of the deadline by union leader N Gopal Kishnam, who had met with the labour department’s director-general earlier today.
Gopal, the secretary general of the Malaysian chapter of IndustriALL – a global union federation – said all 251 workers “would be taken up by a new employer”.
“There’s no need to worry,” he told Hall in a text message.
Hall said he was grateful for Daikin’s response.
“Daikin has shown considerable leadership throughout this dispute and should be praised for its offer at this time of crisis,” he said.
Yesterday it was reported that Kawaguchi agreed to pay their 251 foreign employees up to seven months of overdue salaries.
The company reached the decision five days after the workers held a peaceful protest outside the factory in Port Klang to demand their owed salaries.
They had complained about unpaid wages totalling more than RM3 million since May.
Kawaguchi is reported to be a supplier of components to Sony, Panasonic, and Daikin. The three firms said in September they were looking into allegations of delayed salary payments, forced labour practices, and human rights violations at the company.
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
Original Source: Research December 20, 2024
Sourced from: https://parc-jp.org/research/kawaguchi20241220/
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.
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 in to settle as soon as possible the unpaid wages owed to workers who have been in business with the company up until now.
kawaguchi_report_JP1220.pdfDownloadKawaguchi workers thank Daikin for aid support.
Additional Background Readingon Kawaguchi:
FMT 7th Jan 2025: Kawaguchi foreign workers in Malaysia preparing to sue 2 prominent Japanese companies, Sony and Panasonic, in U.S. courts
FMT 22nd Dec 2024: Resolve migrant worker pay issues to avoid economic jeopardy, says ex-MP
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
Updated Japanese company responses also available on BHRRC site (see below)
Malaysia: Plastics co. supplying to Panasonic, Sony & Daikin accused of violating rights of Bangladeshi workers with 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
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.
In October 2024, Daikin and Sony disclosed updates on their investigations into the case. Their updates can be read in full below.
Towards the end of November, Malaysian news outlets reported on workers’ concerns that buyers were halting sourcing from the factory in light of the ongoing allegations, citing moulds and other equipment being removed from the factory. About 60 workers at the time of that reporting had filed four separate reports with the labour department, claiming they are still owed unpaid wages and unauthorised salary deductions of almost USD180k.
Japanese companies Sony and Panasonic
The Resource Centre to all three buyers for a second time to understand how any exiting was being undertaken in line with responsible procurement principles. We asked the Japanese companies to confirm whether they had terminated sourcing, when this occurred, and which stakeholders were consulted in the decision-making. Panasonic confirmed it had completed all payments and accepted delivery delays from Kawaguchi, but was engaging “other suppliers who can provide the parts for the products currently being ordered by our customers, to whom certain molds were transferred”. Sony said it “had to conclude to discontinue the transaction with the company”. In its response, Daikin highlighted that its orders from Kawaguchi only account for 1-2% of its orders and stated the company would be unable to support Kawaguchi on its own, once Sony and Panasonic stopped sourcing from the factory.
In December 2024, 251 workers of Kawaguchi Manufacturing filed a complaint against Kawaguchi Manufacturing, Sony and Panasonic at the Japanese NCP.
In January 2025, Daikin, Sony and Panasonic were invited to provide updates on the state of remedy for Kawaguchi workers since mid-December 2024 and respond to allegations the settlement reached is inadequate. Developments reported since include:
- Following a five-day worker protest, remediation was discussed at a mediation with Kawaguchi in December but the settlement – which was reportedly agreed to span January 15 2025 until November 15 2025 – is alleged to be “inadequate” and a “formality”.
- Food provision is an acute issue as workers have been surviving on credit-bought food and loans are now due to shopkeepers given previous assurances of backpay by December 2024. While Daikin reportedly donated to distribute food through a local charity, there is no reporting of Sony or Panasonic doing similarly.
- While the labour office had promised the workers transfer to alternative employment, workers reported they were “forced” to accept these jobs, could not negotiate and were not informed of the terms of their employment, and feared continued exploitation.
Latest responses from Daikin and Panasonic are available in full below. Sony did not itself respond but highlighted the recent statement released by the Responsible Business Alliance, of which Sony and Panasonic are members.
Timeline
- RBA Update on Repayment of Worker Recruitment Fees Related to Kawaguchi Manufacturing Sdn. Bhd.
Date: 18 Feb 2025 Content Type:
Disclosure - Daikin update to Kawaguchi case
Date: 17 Feb 2025
Content Type: Article - Update re situation for Kawaguchi Manufacturing workers, 7 February 2025 Date: 7 Feb 2025 Content Type:
Article by Andy Hall - Forced labour allegations at Kawaguchi, Malaysia Date: 21 Jan 2025 Content Type: Article Industriall
- Panasonic response re alleged insufficient remedy to Kawaguchi workers Date: 15 Jan 2025 Content Type: Company Response
- Sony non-response re alleged insufficient remedy to Kawaguchi workers Date: 14 Jan 2025 Content Type: Company Response
- 2nd letter from RBA: Repayment of Worker Recruitment Fees Related to Kawaguchi Manufacturing Sdn. Bhd.
Date: 13 Jan 2025 Content Type: Disclosure - Daikin response re alleged insufficient remedy to Kawaguchi workers Date: 10 Jan 2025 Content Type: Company Response
- USA: Kawaguchi Manufacturing migrant workers to file lawsuit against two Japanese companies for alleged exploitation Date: 8 Jan 2025
Content Type: Article – The 251 Bangladeshi workers who were denied pay for seven months by Kawaguchi Manufacturing are preparing to sue two Japanese companies in Washington DC. Led by activist Andy Hall, they seek damages, compensation, and an apology for exploitation and mistreatment. - Kawaguchi workers ‘forced’ to relocate, claims activist Date: 31 Dec 2024 Content Type: Article – Andy Hall says many of them have had to take on new jobs but were not able to negotiate the terms of their employment.
- Employees of Kawaguchi Manufacturing vs. Kawaguchi Manufacturing, Sony and Panasonic
Date: 27 Dec 2024 Content Type: Article OECD WATCH - Penniless and unemployed, foreign workers hoping to secure jobs before Ramadan Date: 26 Dec 2024
Content Type: Article – The workers are also hoping to secure a job so they can repay their debts. - Daikin status update re Kawaguchi workers: 20 December 2024 Date:
20 Dec 2024 Content Type: Disclosure - Air-con giant comes to rescue of unpaid foreign workers Date: 20 Dec 2024 Content Type: Article – Daikin Industries Ltd gives US$12,000 to help 251 purchase food and aid items.
- Labour Dept to assist Kawaguchi workers in securing new jobs, firm agrees to settle over RM3m backdated pay Date: 19 Dec 2024 Content Type: Article
- Kawaguchi to pay foreign workers’ owed salary Date: 18 Dec 2024 Content Type: Article – An agreement has been reached after a five-hour mediation at the labour office between the employer and a group of foreign workers.
- Sony, Panasonic ‘cut and run’ from Malaysian supplier accused of wage theft Date: 14 Dec 2024 Content Type: Article
- 2nd Daikin response re concerns of contract cutting at Malaysian manufacturer where migrants alleged forced labour5 Dec 2024 Type: Company Response
- 2nd Panasonic response re concerns of contract cutting at Malaysian manufacturer where migrants alleged forced labour5 Dec 2024 Type: Company Response
- 2nd Sony response re concerns of contract cutting at Malaysian manufacturer where migrants alleged forced labour28 Nov 2024 Type: Company Response
- Update: Panasonic disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplier 28 Nov 2024 Type: Company Response
- Factory workers file claim over RM800,000 in wage arrears, deductions28 Nov 2024 Type: Company Response – Fifty-seven say they are worried Kawaguchi Manufacturing Sdn Bhd’s three major clients might cut ties with them over forced labour allegations.
- Letter from Responsible Business Alliance re alleged forced labour at members’ supplier, Kawaguchi ManufacturingDate:26 Nov 2024 Content Type: Disclosure
- Sony admits own audit found probable labour code violation by Malaysian contractorDate:18 Oct 2024 Content Type: Article
- Update: Sony disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplierDate: 16 Oct 2024 Content Type: Disclosure
- Update: Daikin disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplierDate: 4 Oct 2024 Content Type: Disclosure
- Panasonic, Sony and Daikin vows probe into forced-labour claim against Malaysian contractorDate: 19 Sep 2024 Content Type: Article
- Japanese electronics giants probe M’sian supplier after delayed salary paymentsDate: 17 Sep 2024 Content Type: Article
- Panasonic response to allegations of labour rights abuse of Bangladeshi workers at Malaysian supplierDate: 17 Sep 2024 Content Type: Company Response
- Sony response to allegations of labour rights abuse of Bangladeshi workers at Malaysian supplierDate: 13 Sep 2024 Content Type: Company Response
- Daikin response to allegations of labour rights abuse of Bangladeshi workers at Malaysian supplierDate: 12 Sep 2024 Content Type: Company Response
- HR Ministry opens probe into slave labour claims against contractor for Sony, Panasonic and DaikinDate: 6 Sep 2024 Content Type: Article
- Labour dept probes Bangladeshi workers’ forced labour claimsDate: 5 Sep 2024 Content Type: Article
- Bangladeshi workers in Malaysia remain unpaid for 5 monthsDate: 31 Aug 2024 Content Type: Article
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
