Panasonic, Sony, and Daikin are currently investigating serious allegations of forced labor at their Malaysian contractor, Kawaguchi Manufacturing Sdn Bhd.
Workers, mostly from Bangladesh, have come forward with claims that their wages have been withheld for up to five months.
The Port Klang Labour Office raided the company’s Klang factory on September 3, finding evidence that confirmed these reports, according to Malay Mail.
The companies involved have each expressed their commitment to human rights and have launched audits to ensure that their supply chains comply with ethical standards.
Sony, Panasonic, and Daikin have also promised to take necessary corrective actions to protect the workers if violations are confirmed.
On September 9, Kawaguchi’s president has acknowledged the delays in salary payments and has promised to settle all dues by the end of the year.
According to Malaysia Gazette, the company’s president, Datuk George C. Wang, explained that the delays occurred due to a surge in orders from key clients Panasonic and Daikin, leading to cash flow issues.
Despite the setbacks, George assured that an understanding had been reached between the company and the workers to address the matter.
