Sony, Panasonic 'cut and run' from Malaysian supplier accused of wage theft
Summary
Date Reported: 14 Dec 2024
Location: Malaysia
Companies
Sony - Buyer , Daikin - Buyer , Panasonic - BuyerAffected
Total individuals affected: 200
Migrant & immigrant workers: ( 200 - Bangladesh , Manufacturing: General , Gender not reported , Unknown migration status )Issues
Purchasing practices , Wage Theft , Impacts on Livelihoods , Access to Non-Judicial RemedyResponse
Response sought: Yes, by ABC
External link to response: (Find out more)
Action taken: Daikin said as it accounted only for 1-2% of Kawaguchi's total transactions it would be unable to support the factory's operations alone. Sony and Panasonic provided comments to ABC, Kawaguchi did not.
Source type: News outlet
Despite calls to focus on addressing the labour issues, Sony and Panasonic are severing ties with Kawaguchi...
Labour activists have engaged with Sony, Panasonic, and Daikin for months, urging them to use their leverage to ensure workers are paid.
But workers' representatives said the employees still had not received their money.
When they received no response from the factory owners, 57 workers also filed reports with the Malaysian labour department claiming Kawaguchi owed them 806,310 ringgit ($284,643)...
Japanese firm Daikin, which spruiks itself as the number one air-conditioning company in Australia, accounts for only a small portion of orders from Kawaguchi.
Daikin didn't respond to the ABC's questions but has made a public statement...
Workers' representatives say the companies' decisions to cut ties have worsened their situation.
"Only a limited number of workers remain with work in the factory, as the rest have been terminated or have reduced hours," Mr Hall said.
He said many now needed food aid...
Business & Human Rights Resource Centre senior researcher Isobel Archer described the actions of Sony and Panasonic as "extremely irresponsible"...
Deakin University associate professor Pichamon Yeophantong, who is also an independent expert with the UN Working Group on Business and Human Rights, said "abandoning the workers would contradict the companies' human rights commitments".
"This is the type of case that can serve as a litmus test for businesses when it comes to their understanding both of their leverage and their responsibility to respect human rights," Ms Yeophantong said...