KUALA LUMPUR – Kawaguchi Manufacturing is in the process of resolving a dispute over unpaid salaries for 57 foreign workers, agreeing to a settlement exceeding RM3 million and arranging job placements with new employers.
The Peninsular Labour Department, in a statement yesterday, confirmed the resolution was reached during a case mention and negotiation at the Port Klang Labour Office.
The workers were represented by Malaysian Trades Union Congress’ (MTUC) Ethaya Kumar, while the company’s administrative officers participated in the mediation of Port Klang Labour Office officials.
“The case mention resulted in an agreement where both parties reached a consensus on several terms formalised through a memorandum of understanding signed by all 251 foreign workers of the company.
“The workers agreed to receive their outstanding salaries, amounting to over RM3 million in total. Additionally, the affected foreign workers also agreed to job placements with new employers,” the statement read.
The Labour Department further stated it had identified several companies compliant with labour laws and employment regulations as potential new employers. The selection process was carried out in collaboration with the Home Ministry, the Immigration Department, and regulatory agencies.
“The Peninsular Labour Department, through the Selangor Labour Department and Port Klang Labour Office, will continue to monitor the payment process for the outstanding wages and the workers’ transfer to new employers until completion, ensuring their rights and welfare are protected while the company fulfils its obligations responsibly,” it added.
The Labour Department has also opened investigation papers into allegations of “slave labour practices” by Kawaguchi, a contractor supplying components to Japanese electronics giants Sony, Panasonic, and Daikin.
Kawaguchi recently gained attention after clips showing its workers protesting went viral.
The company’s office was believed to have been raided by the Port Klang Labour Office on September 3 following a complaint by migrant worker rights activist Andy Hall, known for his work on foreign worker abuse cases in Malaysia, reported Malay Mail.
During the raid, the department found evidence of unpaid wages for over 200 Bangladeshi workers since April and discovered the company had withheld workers’ passports, a violation of labour laws and a sign of forced labour practices.
“Port Klang Labour office had carried out an investigation on the premises on September 3, 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 the news outlet.
Despite calls to prioritise resolving the labour issues, Sony and Panasonic are severing ties with Kawaguchi, reported ABC.
Panasonic stated it had taken steps to address the problems, including returning confiscated passports, but admitted only partial progress. Sony cited Kawaguchi’s worsening financial situation as the reason for terminating the relationship. – December 20, 2024
