Migrant Workers Reveal Forced Labour Practices in Malaysian Manufacturing
The 1957 Constitution of independent Malaysia, later adopted by the Federation of Malaysia, explicitly prohibits slavery and "all forms of forced labour," with limited exceptions for compulsory national service and other provisions consistent with international standards.[1] Additionally, Malaysia acceded to the ILO Forced Labour Convention (No. 29) in 1957 and also ratified its Protocol of 2014 on 21 Mar 2022 .[2]
Yet, violations of labour rights persist. Over 200 Bangladeshi workers employed by Kawaguchi Manufacturing in Malaysia have reported experiencing serious human rights violations, including multiple indicators of forced labour.[3] The company produces parts for major Japanese companies such as Sony, Panasonic, and Daikin, as well as parts for the Hisense Group.[4]
The reported violations included wage theft, recruitment fees, denial of leave, poor living conditions, visa renewal refusals, intimidation tactics such as detention and deportation threats, and the withholding of migrant workers’ passports.[5] One of the most pressing concerns reported by the workers is delayed or missing wages. Ershad, one of the workers, shared that he initially earned a monthly salary of just over $300.[6] However, over the past two years, his wages became increasingly inconsistent, with delays stretching into months. For the last six months, he has not received any salary at all.[7] Another significant issue raised by workers is excessive working hours. They reported being forced to work 12-hour shifts seven days a week.[8] Despite these gruelling schedules, they report not receiving public holidays or overtime pay.[9]
Wages and working hours are key aspects of working conditions that have the most immediate and noticeable impact on the daily lives of both workers and employers. To ensure that workers receive the full benefits of their earnings, wages must be paid in full, predictably, and on time. This aligns with ILO's mandate for social justice and the promotion of decent work.[10]
Additionally, the ILO Committee of Experts on the Application of Conventions and Recommendations (CEACR) has highlighted that the non-payment or delayed payment of wages can contribute to debt bondage and forced labour.[11] Unfortunately, this is a reality for many workers as reflected in the case of Kawaguchi workers. These workers have been left in debt, unemployed, and penniless. Despite a recent mediation in which Kawaguchi agreed to begin settling the overdue salaries, the workers' futures remain uncertain, and they continue to fear further exploitation.
These allegations collectively reveal systemic issues within Kawaguchi Manufacturing and raise broader questions about the accountability of multinational corporations that rely on such suppliers. Companies should shift from being reactive to crises in their supply chains—to addressing human rights issues in a proactive and consistent manner. This can be achieved by implementing robust due diligence procedures, ensuring transparency, and adopting a zero-tolerance policy toward labour abuses. Companies must not only react when violations are exposed but also anticipate potential issues, working to prevent them through ongoing engagement with suppliers, investing in worker welfare, and promoting fair labour practices.
[1] https://www.iseas.edu.sg/wp-content/uploads/2022/11/TRS2_23.pdf
[2] https://normlex.ilo.org/dyn/nrmlx_en/f?p=1000:11200:0::no:11200:p11200_country_id:102960
[3] https://www.business-humanrights.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/
[4] https://andyjhall.org/2024/12/20/fmt-20th-dec-2024-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/
[5] https://www.industriall-union.org/forced-labour-allegations-at-kawaguchi-malaysia
[7] https://www.abc.net.au/news/2024-12-15/sony-panasonic-accused-of-worker-exploitation-malaysia/104705876
[8]https://andyjhall.org/2024/12/31/fmt-31st-dec-2024-kawaguchi-workers-forced-to-relocate-claims-activist-sony-panasonic-and-daikin-malaysian-supplier-case/
[9] https://andyjhall.org/2024/12/31/fmt-31st-dec-2024-kawaguchi-workers-forced-to-relocate-claims-activist-sony-panasonic-and-daikin-malaysian-supplier-case/
[10]https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@ed_protect/@protrav/@migrant/documents/publication/wcms_878456.pdf
[11]https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@ed_protect/@protrav/@migrant/documents/publication/wcms_878456.pdf