Shimano bike parts 'made by modern slavery' in Malaysia sold to commuters
Summary
Date Reported: 7 Dec 2023
Location: Malaysia
Companies
Kwang Li Industry - Employer , Worldways Manpower - Recruiter , Shimano - Buyer , Specialized - Buyer , Giant Bicycles - Buyer , Trek Bicycle Corporation - Buyer , Evans Cycles Limited - Buyer , Halfords - BuyerAffected
Total individuals affected: 251
Migrant & immigrant workers: ( 251 - Nepal , Manufacturing: General , Men , Unknown migration status )Issues
Violence , Intimidation , Wage Theft , Dismissal , Minimum Wage , Forced Labour & Modern Slavery , Recruitment Fees , Contract SubstitutionResponse
Response sought: Yes, by Resource Centre & Journalists
Story containing response: (Find out more)
External link to response: (Find out more)
Action taken: Shimano, Halford's, Specialized, and Trek responded to the Resource Centre's requests for comment. In addition, journalists stated that Shimano has launched an investigation into Kwang Li and said it is working to remediate the workers “as soon as possible”. Kwang Li Industry told journalists it “had no knowledge that the workers were asked to pay any recruitment fee [at] any point during the process.” Worldways Manpower told journalists the workers had paid one month’s salary (£410) in fees and a further £660 to cover the processing costs it was owed by Kwang Li Industry. He said he did not recognise the £1,855 figure cited by workers. Shimano told journalists: “This is a serious accusation and it stands against what we believe in at Shimano. We are currently investigating the matter with the relevant parties and will use appropriate action to ensure the situation is resolved." A Halfords spokesperson told journalists the company has a “very strict ethical sourcing code which all our direct suppliers must adhere to,” adding that it was investigating whether any components produced by Kwang Li Industry are used in Halfords’ bikes.
Source type: News outlet
…
Workers at Shimano’s Malaysian supplier, Kwang Li Industry, say they have been subject to physical abuse and threats, unlawful salary deductions and recruitment fees, and unpaid suspension...
Due to the salary deductions, those working at the company earned less than Malaysia’s monthly minimum wage, leaving them unable to pay off expensive recruitment costs – equivalent to seven months of salary – tied to their employment...
… Shimano has launched an investigation into Kwang Li and said it is working to remediate the workers “as soon as possible”…
In a document produced by Kwang Li in October 2022, and certified by Malaysian labour authorities, the company agreed to pay the recruitment agency a service charge for sourcing the workers.
However, the workers allege they have been forced to pick up this cost. Several told the Telegraph they had taken out high-interest loans to pay 300,000 Nepalese rupee (£1,855) in recruitment fees – covering medical screening, flight tickets, service charges and more...
A representative of the recruitment agency, Worldways Manpower, said the workers had paid one month’s salary (£410) in fees and a further £660 to cover the processing costs it was owed by Kwang Li Industry. He said he did not recognise the £1,855 figure cited by workers.
Kwang Li Industry said it “had no knowledge that the workers were asked to pay any recruitment fee [at] any point during the process.”...
Workers also say they have been issued with unpaid suspensions, lasting up to 15 days, for making mistakes or failing to meet production targets. Those who spoke with the Telegraph said they have “seen so many workers facing these kinds of suspension”.
Factory managers have threatened the workers with deportation back to Nepal “if you cannot meet a target,” they add.
On one occasion, a Bangladeshi worker was struck across the face by his supervisor for making a “very small mistake,”...
A Halfords spokesperson said the company has a “very strict ethical sourcing code which all our direct suppliers must adhere to,” adding that it was investigating whether any components produced by Kwang Li Industry are used in Halfords’ bikes…