Update re situation for Kawaguchi Manufacturing workers, 7 February 2025
Under the terms of the settlement, brokered also involving a local Malaysian trade union confederation (MTUC) representative, the workers would not see their back wages fully paid back, without penalty or interest, until November 2025, if at all given Kawaguchi’s precarious commercial situation. No unlawful deductions, termination or redundancy payments or other rights owed to the workers were to be paid to the workers under this settlement. As a result of this inadequate remedy and given the workers immediate dire situation, pressure was then placed on Kawaguchi’s main buyers to provide additional and urgent remediation support. In late December, the three main buyers agreed to compensate each worker 20,000RM to reflect the exorbitant recruitment related fees and costs they paid, which in itself did not cover the actual costs involved including high interest payments.
But as of 1st February 2025, only 7 workers have actually received this payment with no explanation provided as to why the payment, to be made via the RBA Foundation and local civil society organization North South Initiative (NSI), has not yet been received by the destitute workers.. A further settlement was then made between legal representatives of the workers and Daikin in January 2025, with most of the workers receiving this remediation. Daikin also covered workers food and medical costs as required, with the RBA later covering an additional 20,000RM in food costs. US lawyers for the workers are now considering legal action against Sony and Panasonic for further remediation in the US courts (link to FMT article). At least 140 of the former Kawaguchi workers remain unemployed pending change of employer, which is taking a significant amount of time.
Food aid has ceased to the workers as of 5th February, and the length of time workers can sustain themselves buying their own food is limited to just a few more days. There is no evidence that Malaysian authorities have taken any legal action to hold Kawaguchi and its management responsible for this situation.