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19 Dec 2023

Malaysia: Migrant workers supplying bicycle manufacturer Shimano report exploitative recruitment & working conditions

A Telegraph investigation into working conditions in the supply chain of Japanese bicycle manufacturer Shimano reports over 200 migrant workers from Bangladesh and Nepal experienced unfair recruitment and labour exploitation at Malaysian supplier Kwang Li Industry. Workers alleged they were charged extortionate recruitment fees, and experienced salary deductions and unpaid suspensions for making mistakes or failing to meet production targets. Additionally, physical abuse and threats of deportation were reported. Kwang Li Industry is alleged to have forced 82 workers to resign after just six months of work.

The Telegraph reports that Shimano supplies component parts to bicycle retailers Specialized, Giant, Trek, Evans Cycles and Halfords. The Telegraph reported comments from Shimano, Kwang Li Industry and bike retailer Halfords.

The lender is asking to pay back the loan but I don’t have any income, any job, any work. I don’t know what to do and how to pay back the loan.
Nepali worker at Kwang Li Industry

The Resource Centre contacted Kwang Li Industry, Shimano, recruitment agency Worldways Manpower and all bicycle retailers named. We invited the retailers to provide information regarding their due diligence processes for qualifying suppliers and monitoring working conditions for supply chain workers, and to describe any steps taken to remediate workers found to have experienced labour violations. Responses from Halfords, Shimano, Specialized, Trek and Worldways Manpower can be read in full below. Kwang Li Industry, Giant and Evans Cycles did not reply.

Company Responses

Shimano View Response
Trek Bicycle Corporation View Response
Halfords View Response
Specialized View Response
Giant Bicycles

No Response

Evans Cycles Limited

No Response

Kwang Li Industry

No Response

Worldways Manpower View Response

Timeline