Associated Press 21st May 2025: Migrant workers in Malaysia seek unpaid wages from Kawaguchi, a supplier to Japanese companies Panasonic, Sony, Daikin, Hisense and others
HANOI, Vietnam (AP) — Around 280 Bangladeshi migrant workers in Malaysia are demanding hundreds of thousands of dollars in back wages and other money owed to them after their former employer, a plastic parts supplier to big Japanese companies, closed down.
Original Source: AP News by ANIRUDDHA GHOSAL – May 21, 2025
(Full video on site)
The workers at Kawaguchi Manufacturing’s factory in Port Klang, Malaysia’s largest port city, were left stranded when the company withheld their wages for up to eight months before shutting down late last year. The workers have filed complaints in Malaysia and back home in Bangladesh.
Such disputes have become a diplomatic sore point between Bangladesh and Malaysia, drawing scrutiny on a small but powerful group of recruitment agencies and middlemen who monopolize such jobs.
Asif Nazrul, an adviser to Bangladesh’s expatriate welfare ministry, met with Malaysia’s Home Minister Steven Sim Chee Keong in Kuala Lumpur last week. Officials were due to meet again Wednesday in Dhaka, the Bangladesh capital.
The interim government that took over in Bangladesh after the ouster of former Prime Minister Sheikh Hasina has placed a higher priority on the plight of migrant workers who often get trapped in debt after paying exorbitant recruitment fees to work in dismal conditions for little pay.
Labor advocates say the situation is worsening as more people from across South Asia, sometimes losing their livelihoods due to climate change, seek work in Southeast Asia.
Trade tensions between the U.S. and China have accelerated that trend as factories move from China to places in Malaysia, Thailand, Vietnam and elsewhere.
Workers allege abuse
The workers have received just 251,000 ringgit ($58,101) of the more than 3 million ringgit ($694,444) in back wages that a Malaysian labor tribunal ordered Kawaguchi to pay. Many have found new jobs but still have heavy debts after borrowing money to pay hefty recruitment fees.
The workers allege they were sometimes required to work without breaks for 24-hour shifts and on holidays with no paid overtime, making plastic casings for televisions and air conditioners. They say Kawaguchi confiscated their passports, provided inadequate housing and delayed their visa renewals.
The factory shut down in December, soon after Sony Group and Panasonic Holdings Corp., two of Kawaguchi’s main customers, halted their orders in response to the allegations against their supplier.
After the factory closed, the workers say Malaysian officials forcibly sent many of them to another city some 360 kilometers (220 miles) away to toil in new factory jobs without giving them any information. They were kept in filthy shipping containers converted into dormitories. Another 80 workers were told to work in palm oil plantations — but refused.
Most made their way back to Port Klang to seek work and chip away at the debts that have been accumulating. It took nearly three months for them to get permission from the Malaysian government to switch jobs.
The Associated Press got no response to multiple requests to Kawaguchi for comment. Malaysia’s labor department also didn’t respond to requests for comment.
Md Kabir Hossain’s case is typical. The 19-year-old said he borrowed more than $4,000 to get to Malaysia from his hometown Rangpur in Bangladesh in November 2023, after his family’s textile shop began to fail. The family’s sole wage earner, he defaulted on one of his loans and wasn’t able to send money back home, as his family struggled to keep their shop going.
“I am constantly worried about what will happen to my family,” he said.
Another worker, Parvez Azam said he didn’t know how much longer he could keep going. “If this goes on, we’ll die here,” he said.
Wider trends across developing Asia
Factories in Malaysia and other countries in Southeast Asia rely on migrant workers, often from Bangladesh, Myanmar and Nepal, to fill labor-intensive jobs in manufacturing, plantations, or construction that local workers won’t perform for the wages offered.
The cost of recruitment and migration from Bangladesh to Malaysia is among the most expensive in the world, according to the International Labor Organization’s office in Bangladesh.
The official recruitment fee is about $650 per worker. But all the workers at Kawaguchi said they paid nearly $5,000. The loans they took to pay such sums has pushed them into debt bondage as they labor to pay off ever mounting debts.
In 2023, Malaysian Prime Minister Anwar Ibrahim said Malaysia should end use of recruitment agents, describing the system as “modern slavery.” But a 2024 study of Bangladeshi workers in Malaysia found that more than 70% had spent at least half of their wages to pay off recruitment debts. Most have at least two loans and many said they were misled about their wages.
Nearly everyone who migrates overseas from Bangladesh, one of the countries most affected by climate change, has suffered at least one form of modern slavery, like withholding of wages or physical violence, according to a study by the London-based think tank International Institute for Environment and Development.
Mohamad Mohosin, 38, said he moved to Malaysia when his crops failed because of extreme weather. After going months without being paid his debt has spiraled, forcing his large family in Bangladesh to borrow still more money. “My family is in trouble,” he said.
Among migrant workers, Bangladeshis often end up in the riskiest jobs, such as plantation work where they can catch mosquito-borne diseases, or physically demanding factory or construction roles, where the likelihood of accidents is higher, said Shariful Islam Hasan of BRAC.
“Despite the high risk and the high migration cost, salaries are too low,” he said.
Seeking help from Japan
Panasonic, Sony and Daikin, three of Kawaguchi’s former main customers among about a dozen, agreed to cover an estimated $1.3 million of the recruitment costs paid by the workers. It’s unclear how much each company is contributing.
“This doesn’t cover all the workers’ costs, including interest rates of up to 30% they must pay on their loans,” said Andy Hall, a British labor activist who has been helping the workers. Many have also defaulted on their debts after going months without wages.
“They’re absolutely desperate and they’re at very high risk of falling into even worse situations,” Hall said.
Daikin settled with the workers, agreeing to pay them more, although it says it accounted for only 1% to 2% of Kawaguchi’s orders. The air conditioner manufacturer told AP it was working with human rights groups to resolve any remaining issues.
Panasonic said it was “proportionally reimbursing the recruitment fees” paid by workers and had asked Kawaguchi to correct labor violations. It said it tried to support Kawaguchi but had to disengage from the company due to its financial woes and anticipated production problems.
Sony told AP its code of conduct prohibits abusive labor practices in its supply chain. After investigating, it demanded corrective measures. “When our demands were not satisfied, we terminated our relationship with this supplier,” it said.
The workers are seeking more help and lawyer Terry Collingsworth of U.S.-based International Rights Advocates, who is representing them, said that they were in discussions with Sony and Panasonic.
“We are not asking you to admit liability. We are asking you to comply with your public commitment to remediate when one of your suppliers violates the human rights of its workers,” said a Jan. 16 letter from Collingsworth to Sony and Panasonic.
___
The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
Ghosal covers the intersection of business and climate change in southeast Asia for The Associated Press. He is based out of Hanoi in Vietnam.
3rd May 2025: FMT – Overdue wages still unpaid despite labour tribunal consent order, say Bangladeshi ex-Kawaguchi workers (supplying Daikin, Hisense, Panasonic, and Sony) when filing Bangladesh and Malaysia Complaints
Migrant rights activist Andy Hall says the workers from Bangladesh received only a first instalment of RM1,000 in January, and a second installment due in April had yet to be paid, despite labour tribunal consent order.
Original Source: FMT by Alysha Edward – 3rd May 2025
PETALING JAYA: More than 40 former migrant workers from Bangladesh have lodged official complaints in Bangladesh and Malaysia against plastics component supplier Kawaguchi Manufacturing over unpaid overdue wages, a migrant rights activist said.
According to Andy Hall, the workers said they received only a first repayment instalment of RM1,000 in January. A second instalment, due in April, had yet to be paid.
The complainants are among 251 workers who were to receive a total of almost RM3 million in overdue salaries in an agreement reached in December after the workers staged a peaceful protest at the company’s factory in Port Klang.
Some of the workers had gone without pay for seven months last year.
Bahasa Malaysia Version
3rd May 2025: FMT – Tunggakan gaji belum dibayar, kata bekas pekerja Kawaguchi
Tunggakan gaji belum dibayar, kata bekas pekerja Kawaguchi
Original Source: FMT by Alysha Edward – 3rd May 2025
Aktivis hak asasi migran Andy Hall berkata pekerja hanya menerima ansuran pertama RM1,000 pada Januari dan ansuran kedua pada April belum dilangsai.
PETALING JAYA: Lebih 40 bekas pekerja migran Bangladesh membuat aduan rasmi di Bangladesh dan Malaysia terhadap pembekal komponen plastik Kawaguchi Manufacturing berhubung tunggakan gaji, kata seorang aktivis hak asasi manusia.
A spokesman for 22 workers who petitioned the labour department in Port Klang on Wednesday said 12 of them were still without jobs.
“We cannot look for jobs because our visas have expired, through no fault of our own, and we cannot even return home.
“We also buy and share food among ourselves,” the spokesman said, adding that they have had to dip into their savings or borrow money from friends to get through the day.
The Port Klang labour office said it was still investigating claims by the former workers of Kawaguchi Manufacturing.
“These workers can file a complaint with the nearest labour department and enquire about their status,” the department’s spokesman told FMT.
FMT has contacted Kawaguchi for comment. Calls to a number provided by the affected workers, said to be that of a company representative, went unanswered.
Kawaguchi Manufacturing supplies components to major Japanese air conditioning and electronics brands.
Hall said 22 other former Kawaguchi workers who returned to Bangladesh had lodged a complaint with the expatriates ministry in Dhaka.
The workers in Bangladesh said they will petition the Malaysian high commission in Dhaka today on the same issue, while the workers in Malaysia said they will go to the Bangladeshi high commission to seek its assistance.
Hall said the Kawaguchi case is symbolic of systemic modern slavery, forced labour, impunity, corruption, and the absence of the rule of law in Malaysia.
“At this stage, I have little genuine hope or expectation that officials in either Bangladesh or Malaysia will assist the workers to access justice and their owed wages for past slave labour,” he told FMT.
“So, what else can the workers do but complain to officials in both countries tasked to protect them from such abuse?”
The labour department is believed to have opened eight investigation papers against Kawaguchi and accommodation providers for the overdue salaries and lack of certification for their accommodation facilities.
—
Bangla Tribune Report
07 May 2025, 20:57
Workers returning from Malaysia submit letter with passport numbers to ministry
Thirty-nine Bangladeshi workers have lodged a complaint in front of the Expatriates’ Welfare and Overseas Employment Ministry in Dhaka demanding their unpaid salaries from Malaysia’s Kawaguchi Manufacturing, a supplier of plastic raw materials to well-known companies like Sony and Panasonic.
They had previously written to the ministry demanding their unpaid salaries.
Following the ministry’s assurance, they submitted their letter again on Wednesday (May 7) along with their passport numbers. It was learnt from the workers that they are owed seven months’ salary by the company.
Workers based in Dhaka said, “We owe seven months’ salary arrears to the Kawaguchi company in Malaysia. A case was filed in a Malaysian court last year in this regard. The Malaysian court ordered the company to pay the arrears.”
Harun Or Rashid, the aggrieved worker, said, “The court ordered the company to pay 1,000 ringgit in cash and ordered the company to pay the remaining amount in 1,000 ringgits every month. The company paid us 1,000 ringgit and sent us back home. According to the court’s order, we were supposed to receive the money on April 15, but the company did not pay any money. When we contacted the company, they are not paying us the money we owe, even after taking time for days.”
Harun said, “We contacted the ministry after arriving in the country. The ministry asked us to provide our written complaint and passport number. We submitted them to the ministry today. We are seeking the ministry’s cooperation so that we can get the money we are owed.”
It was found that 251 people are owed salaries by this Malaysian company.
Their seven months’ salary has been outstanding for a long time. 39 workers who returned to the country have approached the ministry to recover their salary.
On the other hand, 251 workers who filed a lawsuit in a Malaysian court alleged that they were supposed to receive about 3 million ringgit in salary as per the contract. But some workers have been working without salary for seven months.
One of the 22 workers who filed a complaint with the Port Klang Labor Department on Wednesday, April 30, said 12 of them are still unemployed.
They are not getting jobs because their visas have expired. The workers say it is not their fault. They are not even able to return home. They are having to borrow money from friends.
Andy Hall, a rights activist working on labor rights in Asia, told the Bangla Tribune that they received only the first installment of 1,000 ringgit in January. Despite a court order, the second installment of salary due in April has not yet been paid.
“At this stage, I have little real hope or expectation that officials in Bangladesh or Malaysia will help workers get justice and the wages they deserve for their past slave labor,” Hall said.
“What else can workers do other than complain to officials in both countries who are responsible for protecting them from such abuse?”
Incidentally, on August 30 last year, workers protested outside the company demanding their arrears of wages.
In response, the company retaliated with threats and took disciplinary action against some workers. Measures were taken to file false charges against the workers and send them back to Bangladesh. As a result, four workers were blacklisted and sent back to the country, with a five-year ban on their re-entry into Malaysia. Some of the affected workers have been transferred to other companies. Out of 251 workers, 181 were assigned to other companies between December and February. In January, Kawaguchi sent 23 workers back home with plane tickets.
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
Sean Augustin 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”.
—
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
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
Updated FULL Kawaguchi Case Report (Jan 2025)Download
Additional Background Readingon Kawaguchi:
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
22nd Jan 2025: Industriall – Forced labour allegations at Kawaguchi, Malaysia
FMT 7th Jan 2025: Kawaguchi foreign workers in Malaysia preparing to sue 2 prominent Japanese companies, Sony and Panasonic, in U.S. courts
FMT 31st Dec 2024: Kawaguchi workers ‘forced’ to relocate, claims activist (Sony, Panasonic and Daikin Malaysian supplier case)
26th December 2024: FMT – Penniless and unemployed, Kawaguchi’s foreign workers in Malaysia hoping to secure jobs before Ramadan (Sony, Panasonic & Daikin supplier case)
FMT 22nd Dec 2024: Resolve migrant worker pay issues to avoid economic jeopardy, says ex-MP
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)
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
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.
In February 2025, Free Malaysia Today reported that 181 of the 251 foreign workers secured new jobs.
Timeline
- Two-thirds of ex-Kawaguchi employees have found new jobs, activist reveals Date: 23 Feb 2025 Content Type: Article
- Panasonic update to Kawaguchi case Date: 20 Feb 2025 Content Type: Disclosure
- RBA Update on Repayment of Worker Recruitment Fees Related to Kawaguchi Manufacturing Sdn. Bhd.
Date: 18 Feb 2025 Content Type:
RBA Disclosure - Daikin update to Kawaguchi case
Date: 17 Feb 2025
Content Type: Daikin Disclosure - Update re situation for Kawaguchi Manufacturing workers, 7 February 2025Date: 7 Feb 2025 Content Type:
Article by Andy Hall - Forced labour allegations at Kawaguchi, MalaysiaDate: 21 Jan 2025 Content Type: Article Industriall
- Panasonic response re alleged insufficient remedy to Kawaguchi workersDate: 15 Jan 2025 Content Type: Company Response
- Sony non-response re alleged insufficient remedy to Kawaguchi workersDate: 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 workersDate: 10 Jan 2025 Content Type: Company Response
- USA: Kawaguchi Manufacturing migrant workers to file lawsuit against two Japanese companies for alleged exploitationDate: 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 activistDate: 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 RamadanDate: 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 2024Date:
20 Dec 2024 Content Type: Disclosure - Air-con giant comes to rescue of unpaid foreign workersDate: 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 payDate: 19 Dec 2024 Content Type: Article
- Kawaguchi to pay foreign workers’ owed salaryDate: 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 theftDate: 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 supplier28 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
Key Case Documents/Reports
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
