Charles Santiago says weak enforcement of labour laws could harm Malaysia’s global reputation and efforts to attract foreign investment following salary protests at Malaysia’s Kawaguchi plastics company supplying Japanese conglomerates Sony, Panasonic and Daikin. A former MP has called on the human resources ministry to strengthen enforcement of regulations against forced labour after workers at a plastics factory in Klang carried out a protest over months of unpaid wages.

Original Source: FMT by Rex Tan – 15 December 2024

Charles Santiago said the protest reflected a failure to enforce labour laws, which could harm Malaysia’s reputation in the global market.

“The labour department should have been at the gates of Kawaguchi Manufacturing Sdn Bhd when reports that the workers were not being paid first started coming in,” he told FMT.

“This is a failure of enforcement, and this is not the only case. It’s happening everywhere. We are sending the wrong message, that the government of Malaysia is not taking forced labour issues seriously,” said Santiago, who is co-chairman of Asean Parliamentarians for Human Rights.

On Friday, Selangor police chief Hussein Omar Khan told FMT the authorities had dispersed a peaceful gathering of 250 Kawaguchi workers who were demanding that the management pay them their outstanding salaries.

However, a video obtained from a worker at the scene showed a group of workers still gathered outside the plant at night.

FMT understands that the workers called off the protest only after midnight, following persuasion from the police and officials of the Bangladesh High Commission in Kuala Lumpur.

The protest, involving around 250 workers, came after workers complained about unpaid wages totalling over RM800,000 since May.

The company was subject to an investigation by the labour department in September, which found evidence that it had not paid more than 200 of its Bangladeshi workers since April, and had also retained their passports.

Santiago said that if the human resources ministry had intervened earlier to mediate between the workers and management, the wage dispute could have been resolved without the need for public protests.

“But now, there are videos all over the place of the workers protesting. Every media (outlet) has got these videos. People will write about it, and then that brings more questions about modern slavery or forced labour,” he said.

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 Kawaguchi.

15th Dec 2024: Sony, Panasonic ‘cut and run’ from Malaysian supplier Kawaguchi accused of wage theft

Original Source: ABC by Libby Hogan – 15 December 2024

In short

About 200 migrant workers at Kawaguchi Manufacturing in Malaysia allege forced overtime, having their passports withheld and not being paid their salaries for six months.

Japanese electronics giants Sony and Panasonic say they have investigated abuses and are severing ties with the company.

What’s next?

Labour activists argue these companies need to address unpaid wages for vulnerable workers rather than simply cutting ties with Kawaguchi.

When Ershad left Bangladesh for Malaysia, he dreamed of supporting his family back home.

He was hired at Kawaguchi Manufacturing to produce plastic casings for televisions and air conditioners for multinational companies including Sony, Panasonic and Daikin.

Some of these parts have been supplied to Australia.

Initially, Ershad earned just over $300 a month (1,000 Malaysian Ringgit).

However, over the past two years his wages became inconsistent.

Payments were delayed, sometimes by several months. And for the last six months he says he’s received no salary at all.

Ershad and more than 200 other workers previously went on strike to demand months’ worth of unpaid salaries.

Malaysian media reported that local authorities found evidence during a September 3 raid that Kawaguchi Manufacturing had not paid hundreds of its Bangladeshi workers since April, and had also retained their passports.

“The amount we are owed keeps piling up,” said Ershad, whose name and those of other workers have been changed because they fear detention, deportation or other repercussions for speaking publicly.

Workers allege wage theft, forced overtime, recruitment fee exploitation, and confiscated passports — a grim reality behind the supply chains of some of the biggest global brands.

And although they’re building parts for global brands, workers shared photos of their accommodation, which is provided by Kawaguchi, showing squalid dormitories with only pedestal fans for cooling.

Sony and Panasonic abruptly exit

Despite calls to focus on addressing the labour issues, Sony and Panasonic are severing ties with Kawaguchi.

Panasonic said it’s been helping fix the problems, including returning confiscated passports, but admitted only partial progress had been made.

“We paid for orders prior to the payment date, accepted their delayed delivery, and advanced the payment for procuring the raw materials,” Panasonic said in an email to the ABC.

It’s hoped the advanced payments will help with the cash flow.

According to Panasonic, Kawaguchi promised to pay workers’ outstanding salaries in full in December.

The ABC made several attempts at contacting Kawaguchi but received no response.

Sony said it urged Kawaguchi to improve pay, working conditions and dormitories, but cited the supplier’s worsening financial situation as the reason for ending its business.

“We requested the company to promptly implement corrective measures, including appropriate payment to workers,” Sony spokesperson Noriko Shoji said.

Sony added it would work with organisations to “explore reasonable support” to affected workers but didn’t elaborate on what this meant.

Labour activists have engaged with Sony, Panasonic, and Daikin for months, urging them to use their leverage to ensure workers are paid.

But workers’ representatives said the employees still had not received their money.

When they received no response from the factory owners, 57 workers also filed reports with the Malaysian labour department claiming Kawaguchi owed them 806,310 ringgit ($284,643).

With their visas tied to Kawaguchi, many migrant workers can’t seek other jobs or afford to pay more recruitment agencies.

Mozammel, another worker from Bangladesh, said he felt trapped.

“We want to keep working or at least get our recruitment fees reimbursed.”

Some workers fear the factory will shut down entirely, leaving them jobless.

‘Cutting and running highly detrimental’

Japanese firm Daikin, which spruiks itself as the number one air-conditioning company in Australia, accounts for only a small portion of orders from Kawaguchi.

Daikin didn’t respond to the ABC’s questions but has made a public statement.

Daikin Malaysia (DAMA) said it discovered during a routine visit that Sony and Panasonic — responsible for most of Kawaguchi’s business — planned to remove their moulds and halt transactions.

“Under these circumstances, DAMA, which only accounts for 1-2 per cent of Kawaguchi’s total transactions, would be unable to support Kawaguchi’s operations on its own.”

Lawyer Andy Hall, who has worked on labour rights in Asia for more than 10 years, has proposed roundtable talks between brands, factory owners and workers’ representatives.

Workers’ representatives say the companies’ decisions to cut ties have worsened their situation.

“Only a limited number of workers remain with work in the factory, as the rest have been terminated or have reduced hours,” Mr Hall said.

He said many now needed food aid.

“All of the estimated 220 workers are now lacking valid visas, with at least 50 workers in a completely irregular and vulnerable status,” he added.

Mr Hall said many had massive debts as a result of falling victim to excessive recruitment-related fees and were vulnerable to falling into modern slavery.

Business & Human Rights Resource Centre senior researcher Isobel Archer described the actions of Sony and Panasonic as “extremely irresponsible”.

“Cutting and running can have direct negative and highly detrimental impacts on workers if it is not done in a planned way,” she said.

Deakin University associate professor Pichamon Yeophantong, who is also an independent expert with the UN Working Group on Business and Human Rights, said “abandoning the workers would contradict the companies’ human rights commitments”.

“This is the type of case that can serve as a litmus test for businesses when it comes to their understanding both of their leverage and their responsibility to respect human rights,” Ms Yeophantong said.

Companies should shift from being “passive bystanders” to actively solving crises when they detect them in their supply chain, she added.

Panasonic, Sony and Daikin said they were working to support the impacted workers.

“We will use our leverage to address workers’ labour rights abuses in a collaborative manner together with relevant stakeholders,” Panasonic said.

“We are now shifting our focus to collaborate with RBA [Responsible Business Alliance] and some other organisations to explore reasonable support and remedies for the affected migrant workers,” Sony said in their statement.

Many workers now fear returning home to Bangladesh empty-handed.

“Initially I was so happy to work for Sony and Panasonic, such world-famous brands, but with no payment and mounting debts I no longer feel proud,” another worker, Kabir, said.

“I gave up my honours studies after my father died to support my siblings.

“Now I’m burdened with a huge debt and I don’t know how I can contribute to their studies.”

Kawaguchi workers protest after midnight on 14th Dec 2024 inside the factory compound

14th Dec 2024: FMT – Protest and alleged hostage taking at Kawaguchi plastics company in Malaysia by Bangladeshi migrant worker modern slavery victims over salary arrears – key Japanese buyers Sony, Panasonic and Daikin respond to BHRRC

PETALING JAYA: A group of workers at Kawaguchi plastics manufacturing company in Klang have continued to protest over unpaid wages after the police earlier said a gathering had been dispersed.

Original Source: FMT by Rex Tan – 13 December 2024

It is understood that officials from the Bangladesh high commission in Kuala Lumpur are at the company to resolve the issue. Police said earlier last night that they had dispersed a peaceful gathering of 250 workers from the company. Selangor police chief Hussein Omar Khan told FMT the workers were demanding that the management pay them their salaries. The protest comes two weeks after FMT reported that 57 Kawaguchi workers complained in four separate reports with the labour department over unpaid wages and unlawful salary deductions totalling more than RM800,000 since May.

A video from a worker at the scene showed a group of workers gathered outside the Kawaguchi Manufacturing plant in Klang at night.

The protest comes two weeks after FMT reported that 57 Kawaguchi workers complained in four separate reports with the labour department over unpaid wages and unlawful salary deductions totalling more than RM800,000 since May.

Hussein said police arrived and dispersed the protest. “There were no injuries reported,” he said, adding that no police reports have been lodged into the incident.

A foreign worker who wished to be known as Syed Hashim told FMT the workers were unhappy with a company announcement that their wage arrears would only be paid next September.

“We want our salaries. The company promised to pay us by December, but they have not done so,” said Syed Hashim.

Syed Hashim said workers went to the company this afternoon after receiving word that it was set to close soon, and they were worried they would not be paid.

He said the protestors prevented several company executives from leaving the scene as they wanted the company’s general manager to negotiate with them.

Kawaguchi was already subject to an investigation by the labour department in September, which found evidence that it had not paid more than 200 of its Bangladeshi workers since April, and had also retained their passports.

It was previously reported that the company supplies 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 Kawaguchi.

FMT has reached out to an aide to human resources minister Steven Sim for comment, and is awaiting comment from the labour department for confirmation whether any legal action has been taken again.

26th Nov 2024: FMT – Worried Kawaguchi factory workers in Malaysia, producing Sony, Panasonic, Daikin, and Sanden products, file a claim over RM800,000 (US$180,000) in wage arrears, deductions

Fifty-seven say they are worried Kawaguchi Manufacturing Sdn Bhd’s three major clients might cut ties with them over forced labour allegations.

Sourced from: FMT by Jason Thomas – 27 November 2024

PETALING JAYA: About 60 workers from a plastics manufacturing company in Klang which supplies components to three major Japanese electronics firms have filed reports with the labour department over unpaid wages and unlawful salary deductions totalling more than RM800,000.

In four separate reports filed over three days at the Port Klang labour department, the 57 workers claim the company, Kawaguchi Manufacturing Sdn Bhd, owes them RM806,310 in unpaid wages and unauthorised salary deductions for levy payments.

YouTube: HERE

The workers, who had previously gone on strike to demand months of unpaid salary, claim in the reports the company has not paid them for up to six months from May.

Kawaguchi was already subject to an investigation by the department in September, which found evidence during a Sept 3 raid that it had not paid more than 200 of its Bangladeshi workers since April, and had also retained their passports.Play

The investigation followed a complaint by British migrant rights activist Andy Hall.

—

Updated Japanese company responses also available on BHRRC site

Timeline

• 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 Response Documents and Files

20241204_RESPONSE_DAIKIN_resend.pdfDownload

Panasonic – Status update on Kawaguchi 28.11.2024 1.docxDownload

20241128_Sony_Response.pdfDownload

11.19.24 Notice Letter to Sony, Panasonic and Daikin.pdfDownload

Kawaguchi Forced Labor Updated 5th Nov,24.pdfDownload

RBA_Letter_to_BHRRC_regarding_Malaysia_Supplier_26-Nov-24.pdfDownload

Unpaid wages, unauthorised salary deductions, and the withholding of passports are violations of Malaysian labour law and three of 11 indicators of forced labour practices, according to the International Labour Organization (ILO).

The three major Japanese electronics firms that source from Kawaguchi – Sony, Panasonic, and Daikin – also said in September they were looking into delayed salary payments and alleged human rights violations at Kawaguchi.

Last month, Sony Group Corporation told the Business and Human Rights Resource Centre (BHRCC), an advocacy group that monitors human rights abuses among businesses, its on-site audit of Kawaguchi found that the company had violated their supply chain code of conduct.

In a statement to BHRCC, Sony said it has strict supply chain rules that require suppliers to respect its workers’ human rights.

It said it also prohibits the use of trafficked and forced labour, including the confiscation of passports or collection of recruitment fees.

“We have requested the company to promptly implement corrective measures, including appropriate payment to workers, proper management of working hours, and improvements to its dormitory’s living conditions,” said the senior general manager of Sony’s sustainability department, Mitsu Shippee.

Kawaguchi workers have told FMT they fear the three Japanese corporations have decided to stop sourcing from Kawaguchi in light of the ongoing allegations, stating that they have seen the removal of moulds and related equipment by the companies from the Kawaguchi facility.

In an email to Hall sighted by FMT, Daikin said they understood Sony and Panasonic, which account for the majority of Kawaguchi’s transactions, were moving to suspend business with the company.

“Given the business risks, we have determined that we cannot continue doing business with Kawaguchi any longer,” said Daikin.

The Malaysian chapter of IndustriALL – a global union which represents 50 million workers in 140 countries in the mining, energy and manufacturing sectors – said the workers’ reports outline serious violations of workers’ rights and human rights, which was all the more worrying considering the possibility that the Japanese firms would stop sourcing from Kawaguchi.

IndustriALL Malaysia executive committee member N Gopal Kishnam said the workers would have obtained massive loans in Bangladesh to pay for recruitment fees before “stepping foot in Malaysia with the hope of earning a decent wage for decent work”.

“But, according to the facts we have gathered, they were abused,” he said, adding that they worked more than 12 hours a day without proper payment of wages.

“The IndustriALL Malaysia council demands that the employer pays these workers their wages and compensation due to them, (especially if) their contracts are to be terminated before the expiry of their term,” he said.

FMT has reached out to the labour department for confirmation whether any legal action has been taken against Kawaguchi given the findings of its September investigation.

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.

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.

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 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.

Company Responses

Daikin View Response

Sony View Response

Panasonic View Response

Timeline

• Update: Sony disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplierDate:16 Oct 2024Content Type:Disclosure
• Update: Daikin disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplier

• 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

Sony_update_re-Kawaguchi.pdfDownload

20241004_RESPONSE_DAIKIN.pdfDownload

20240912_Daikin RESPONSE.pdfDownload

20240913_Sony Response.pdfDownload

20240917_Panasonic_Response_.pdfDownload

YouTube: https://youtu.be/wDm9NolYaIg

𝐋𝐋𝐑𝐂 𝐂𝐀𝐋𝐋𝐒 𝐎𝐍 𝐇𝐔𝐌𝐀𝐍𝐑𝐄𝐒𝐎𝐔𝐑𝐂𝐄𝐒 𝐌𝐈𝐍𝐈𝐒𝐓𝐄𝐑 𝐓𝐎𝐈𝐌𝐌𝐄𝐃𝐈𝐀𝐓𝐄𝐋𝐘 𝐈𝐍𝐓𝐄𝐑𝐕𝐄𝐍𝐄 𝐈𝐍𝐓𝐇𝐄 𝐊𝐀𝐖𝐀𝐆𝐔𝐂𝐇𝐈 𝐖𝐎𝐑𝐊𝐄𝐑𝐒‘ 𝐏𝐑𝐎𝐓𝐄𝐒𝐓

Media Statement issued by Labour Solidarity and Learning Resources Association (LLRC, previously known as the Labour Law Reform Coalition) at Kuala Lumpur on 14th December 2024

Since the Port Klang labour department raided Kawaguchi Manufacturing Sdn Bhd in September and found evidence of forced labour and the company’s failure to pay workers’ wages for five months, no concrete remedies have been provided to the plastics factory workers.

Yesterday, 200 Bangladeshi migrant workers at Kawaguchi staged a protest at the factory when they were informed that the company would only pay back wage arrears in September 2025. The workers blocked the building, prevented executives from leaving, and requested a negotiation with the management.

There seems to be no end in sight to the Kawaguchi workers’ crisis and the allegations of forced labour. This situation highlights the limited impact of the National Action Plan on Forced Labour on real cases where workers are denied justice. It threatens to tarnish Malaysia’s international reputation and undermine foreign investors’ confidence in the country.

The Labour Solidarity and Learning Resource Association (LLRC) therefore calls on Human Resources Minister Steven Sim to immediately intervene in the Kawaguchi workers’ protest and take decisive action to ensure all Kawaguchi workers receive their unpaid wages and other owed benefits.

Furthermore, given that some of Kawaguchi’s main customers have terminated their business relationships with the company, there is a possibility it may close down. In such a case, the Human Resources Ministry must facilitate alternative employment opportunities in Malaysia for the affected migrant workers. Deporting these workers without addressing their grievances would be unjust and could push them into debt bondage, as many have taken on exorbitant loans to secure employment in Malaysia.

END

Gopal Kishnam Nadesan
Secretary-General
Labour Solidarity and Learning Resources Association (LLRC)

YouTube: httpst://youtu.be/1RUdvkpJlCM

Additional Background Readingon Kawaguchi:

FMT 14th Dec 2024: Protest and alleged hostage taking at Kawaguchi plastics company in Malaysia by Bangladeshi migrant worker modern slavery victims over salary arrears – key Japanese buyers Sony, Panasonic and Daikin respond to BHRRC

26th Nov 2024: FMT – Worried Kawaguchi factory workers in Malaysia, producing Sony, Panasonic, Daikin and Sanden products, file a claim over RM800,000 (US$180,000) in wage arrears, deductions

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:

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 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

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

The post 15th Dec 2024: FMT – Ex-MP calls for ministry action after salary protest at Malaysia’s Kawaguchi plastics company supplying Japanese conglomerates Sony, Panasonic and Daikin appeared first on Andy Hall.

PETALING JAYA: A group of workers at Kawaguchi plastics manufacturing company in Klang have continued to protest over unpaid wages after the police earlier said a gathering had been dispersed.

Original Source: FMT by Rex Tan – 13 December 2024

It is understood that officials from the Bangladesh high commission in Kuala Lumpur are at the company to resolve the issue. Police said earlier last night that they had dispersed a peaceful gathering of 250 workers from the company. Selangor police chief Hussein Omar Khan told FMT the workers were demanding that the management pay them their salaries. The protest comes two weeks after FMT reported that 57 Kawaguchi workers complained in four separate reports with the labour department over unpaid wages and unlawful salary deductions totalling more than RM800,000 since May.

A video from a worker at the scene showed a group of workers gathered outside the Kawaguchi Manufacturing plant in Klang at night.

Hussein said police arrived and dispersed the protest (NB. seems inaccurate or false police statement as protest ongoing). “There were no injuries reported,” he said, adding that no police reports have been lodged into the incident.

A foreign worker who wished to be known as Syed Hashim told FMT the workers were unhappy with a company announcement that their wage arrears would only be paid next September.

“We want our salaries. The company promised to pay us by December, but they have not done so,” said Syed Hashim.

Syed Hashim said workers went to the company this afternoon after receiving word that it was set to close soon, and they were worried they would not be paid.

He said the protestors prevented several company executives from leaving the scene as they wanted the company’s general manager to negotiate with them.

Kawaguchi was already subject to an investigation by the labour department in September, which found evidence that it had not paid more than 200 of its Bangladeshi workers since April, and had also retained their passports.

It was previously reported that the company supplies 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 Kawaguchi.

FMT has reached out to an aide to human resources minister Steven Sim for comment, and is awaiting comment from the labour department for confirmation whether any legal action has been taken against Kawaguchi.

26th Nov 2024: FMT – Worried Kawaguchi factory workers in Malaysia, producing Sony, Panasonic, Daikin, and Sanden products, file a claim over RM800,000 (US$180,000) in wage arrears, deductions

Fifty-seven say they are worried Kawaguchi Manufacturing Sdn Bhd’s three major clients might cut ties with them over forced labour allegations.

Sourced from: FMT by Jason Thomas – 27 November 2024

PETALING JAYA: About 60 workers from a plastics manufacturing company in Klang which supplies components to three major Japanese electronics firms have filed reports with the labour department over unpaid wages and unlawful salary deductions totalling more than RM800,000.

In four separate reports filed over three days at the Port Klang labour department, the 57 workers claim the company, Kawaguchi Manufacturing Sdn Bhd, owes them RM806,310 in unpaid wages and unauthorised salary deductions for levy payments.

YouTube: HERE

The workers, who had previously gone on strike to demand months of unpaid salary, claim in the reports the company has not paid them for up to six months from May.

Kawaguchi was already subject to an investigation by the department in September, which found evidence during a Sept 3 raid that it had not paid more than 200 of its Bangladeshi workers since April, and had also retained their passports.Play

The investigation followed a complaint by British migrant rights activist Andy Hall.

Updated Japanese company responses also available on BHRRC site

Timeline

• 2nd Daikin response re concerns of contract cutting at Malaysian manufacturer where migrants alleged forced labour 5 Dec 2024 Type:Company Response
• 2nd Panasonic response re concerns of contract cutting at Malaysian manufacturer where migrants alleged forced labour 5 Dec 2024 Type:Company Response
• 2nd Sony response re concerns of contract cutting at Malaysian manufacturer where migrants alleged forced labour 28 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, deductions 28 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 Manufacturing Date:26 Nov 2024 Content Type: Disclosure
• Sony admits own audit found probable labour code violation by Malaysian contractor Date:18 Oct 2024 Content Type: Article
• Update: Sony disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplier Date: 16 Oct 2024 Content Type: Disclosure
• Update: Daikin disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplier Date: 4 Oct 2024 Content Type: Disclosure
• Panasonic, Sony and Daikin vows probe into forced-labour claim against Malaysian contractor Date: 19 Sep 2024 Content Type: Article
• Japanese electronics giants probe M’sian supplier after delayed salary payments Date: 17 Sep 2024 Content Type: Article
• However, Klang-based Kawaguchi Manufacturing Sdn Bhd has assured its workers that the delay will be resolved by the end of the year.
• 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
• Bangladeshi workers in Malaysia remain unpaid for 5 months Date: 31 Aug 2024 Content Type: Article

Unpaid wages, unauthorised salary deductions, and the withholding of passports are violations of Malaysian labour law and three of 11 indicators of forced labour practices, according to the International Labour Organization (ILO).

The three major Japanese electronics firms that source from Kawaguchi – Sony, Panasonic, and Daikin – also said in September they were looking into delayed salary payments and alleged human rights violations at Kawaguchi.

Last month, Sony Group Corporation told the Business and Human Rights Resource Centre (BHRCC), an advocacy group that monitors human rights abuses among businesses, its on-site audit of Kawaguchi found that the company had violated their supply chain code of conduct.

In a statement to BHRCC, Sony said it has strict supply chain rules that require suppliers to respect its workers’ human rights.

It said it also prohibits the use of trafficked and forced labour, including the confiscation of passports or collection of recruitment fees.

“We have requested the company to promptly implement corrective measures, including appropriate payment to workers, proper management of working hours, and improvements to its dormitory’s living conditions,” said the senior general manager of Sony’s sustainability department, Mitsu Shippee.

Kawaguchi workers have told FMT they fear the three Japanese corporations have decided to stop sourcing from Kawaguchi in light of the ongoing allegations, stating that they have seen the removal of moulds and related equipment by the companies from the Kawaguchi facility.

In an email to Hall sighted by FMT, Daikin said they understood Sony and Panasonic, which account for the majority of Kawaguchi’s transactions, were moving to suspend business with the company.

“Given the business risks, we have determined that we cannot continue doing business with Kawaguchi any longer,” said Daikin.

The Malaysian chapter of IndustriALL – a global union which represents 50 million workers in 140 countries in the mining, energy and manufacturing sectors – said the workers’ reports outline serious violations of workers’ rights and human rights, which was all the more worrying considering the possibility that the Japanese firms would stop sourcing from Kawaguchi.

IndustriALL Malaysia executive committee member N Gopal Kishnam said the workers would have obtained massive loans in Bangladesh to pay for recruitment fees before “stepping foot in Malaysia with the hope of earning a decent wage for decent work”.

“But, according to the facts we have gathered, they were abused,” he said, adding that they worked more than 12 hours a day without proper payment of wages.

“The IndustriALL Malaysia council demands that the employer pays these workers their wages and compensation due to them, (especially if) their contracts are to be terminated before the expiry of their term,” he said.

FMT has reached out to the labour department for confirmation whether any legal action has been taken against Kawaguchi given the findings of its September investigation.

18th Oct 2024: Sony admits own audit found probable labour code violation by Malaysian contractor Kawaguchi

By Andy Hall / 18/10/2024 

18th Oct 2024: Sony admits own audit found probable labour code violation by Malaysian contractor Kawaguchi

KUALA LUMPUR, Oct 18 — Sony Group Corporation said its on-site audit of the Malaysian factory that supplies plastic components for its electronic products found the contractor, Kawaguchi, had violated their supply chain code of conduct, following allegations of forced labour practices previously raised by activists and workers. 

Original Source: Malay Mail by Syed Jaymal Zahiid – 18th October 2024

The electronics giant is one of three Japanese mega firms to source plastic components from Kawaguchi Manufacturing Sdn Bhd, the Klang-based company accused of various forced labour practices that were first brought to light by workers who went on strike to demand months of unpaid salary. The other two are Panasonic and Daikin, the air conditioner maker. 

Updated company responses also available on BHRRC site

Sony_update_re-Kawaguchi.pdfDownload

20241004_RESPONSE_DAIKIN.pdfDownload

Sony said the company puts in place strict supply chain rules that include requiring suppliers to respect the human rights of its workers and explicitly prohibits the use of trafficked and forced labour, including exploitative labour, confiscation of passports or collection of recruitment fees. 

“As regarding the questioned supplier, in accordance with the above policy, we have conducted the investigations including an on-site audit by a third-party auditor and our direct communications with the company,” the company said in a statement sent to the Business and Human Rights Resource Centre, an advocacy group that monitors human rights abuses among businesses. 

“Through these investigations, we have reason to believe there were violations of the Code at the company.” 

Last month, Kawaguchi’s office was raided by the Port Klang Labour Office following a complaint by a migrant worker rights activist, Andy Hall, who has worked on multiple cases of foreign worker abuses in the country. 

The department said it found evidence that Kawaguchi has not been paying over 200 of their Bangladeshi workforce since April this year. 

The company was also found to have withheld the workers’ passports, a violation of labour laws and an indicator of forced labour practices. 

Sony said it has “requested” Kawaguchi to immediately implement “corrective measures” including appropriate payment to workers, proper management of working hours, and improvement of living conditions of its dormitory. 

“We will continue to work closely with relevant authorities to monitor the progress of the corrective measures to be done by the company. We may also conduct the follow-up audit as needed,” the firm said. 

The investigations into Kawaguchi Manufacturing are the latest in a 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 tier in the US Department’s anti-human trafficking report.

YouTube: https://youtu.be/wDm9NolYaIg

19th Sept 2024: Malay Mail- Panasonic, Sony and Daikin vows probe into forced labour claim against Malaysian contractor

KUALA LUMPUR, Sept 19 — Three major Japanese electronic companies, Panasonic, Sony and Daikin have pledged to investigate a Malaysian-based supplier accused of forced labour practices that include withholding passports and wages spanning months.

Sourced from: Malay Mail – By Syed Jaymal Zahiid – 19th September 2024

Kawaguchi Manufacturing Sdn Bhd, a Klang-based Japanese company that supplies plastic components for Panasonic, Sony, and Daikin, is now the subject of a probe by the Malaysian Labour Department after its workers lodged complaints that they have not been paid since April this year, indicating forced labor practices. 

Most of Kawaguchi’s workers are Bangladeshis.

The companies pledged to conduct a thorough audit, and if necessary recommend “corrective actions”. Sony, Panasonic and Daikin said in separate individual statements that any unfair treatment of workers contravene their respective supply chain ethics and code of conduct.

“We have an existing business relationship with Kawaguchi Manufacturing. We are investigating this issue and will continue to do so in more detail,” Panasonic Holdings Corporation said in a statement issued to Business & Human Rights Resource Centre (BHRRC), an influential agency that monitors human rights violations among multinational companies.

“Based on this, we will consider taking necessary measures in alignment with relevant authorities in Malaysia and other stakeholders, including requesting Kawaguchi Manufacturing to take corrective actions safeguarding the interests of the impacted workers.”

Sony’s senior general manager overseeing the company’s sustainability practice, Mitsu Shippee, said: “Sony is committed to uphold the internationally recognised human rights of all people”.

“With regards to our supply chain, as a member of the Responsible Business Alliance, we work collaboratively with governments, industries, and other stakeholders to thoroughly review the situation and find appropriate solutions….we will conduct a thorough fact-checking investigation,” the company said.

Meanwhile Daikin’s human rights promotion office said it is “contemplating the remedies and measures to be taken for the workers”.

“Moreover we will make the best effort to investigate the root cause of this issue i.e. why this incident occurred. Finally, the Daikin Group must recognise that our CSR were not effective enough in this case our group’s supply chain,” said Tomutsu Namiki, who oversees the company’s human rights department.

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 Port Klang Labour Office conducted a raid on Kawaguchi’s plant on September 3 following a complaint by an activist who works closely with migrant workers, and they said they found evidence that the company had not been paying its staff up to five months worth of salaries.

On September 9, after the issue gained public attention, Kawaguchi president George Wang held a press conference where he pledged to pay 200 foreign and 40 local workers their salaries by year-end.

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

17th Sept 2024 FMT/BHRRC: 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

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

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

YouTube: httpst://youtu.be/1RUdvkpJlCM

Workers protesting outside the Klang factory earlier this month over their delayed salaries.

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.

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. 

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

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

• Update: Sony disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplierDate:16 Oct 2024Content Type:Disclosure
• Update: Daikin disclosure re-allegations of labour rights abuse of Bangladeshi workers at Malaysian supplier

• 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

Sony_update_re-Kawaguchi.pdfDownload

20241004_RESPONSE_DAIKIN.pdfDownload

20240912_Daikin RESPONSE.pdfDownload

20240913_Sony Response.pdfDownload

20240917_Panasonic_Response_.pdfDownload

6th Sept 2024: Malay Mail – Malaysian HR Ministry opens probe into slave labour claims against the 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 labor dept probes Bangladeshi workers’ forced labor 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 

https://www.youtube.com/embed/1RUdvkpJlCM?feature=oembedThe 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.The workers protesting outside the factory in Klang.

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.

Read more: Malaysia to hire 1.8 lakh Bangladeshi workers

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.

Read more: Bangladesh’s largest financial scam in worker migration to Malaysia exposed

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:

26th Nov 2024: FMT – Worried Kawaguchi factory workers in Malaysia, producing Sony, Panasonic, Daikin and Sanden products, file a claim over RM800,000 (US$180,000) in wage arrears, deductions

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

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 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

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

The post 14th Dec 2024: FMT – Protest and alleged hostage taking at Kawaguchi plastics company in Malaysia by Bangladeshi migrant worker modern slavery victims over salary arrears – key Japanese buyers Sony, Panasonic and Daikin respond to BHRRC appeared first on Andy Hall.