About 60 workers from a plastics manufacturing company in Klang which supplies components to three major Japanese electronics firms have filed reports with the labour department over unpaid wages and unlawful salary deductions totalling more than RM800,000.

In four separate reports filed over three days at the Port Klang labour department, the 57 workers claim the company, Kawaguchi Manufacturing Sdn Bhd, owes them RM806,310 in unpaid wages and unauthorised salary deductions for levy payments...

Kawaguchi was already subject to an investigation by the department in September, which found evidence during a Sept 3 raid that it had not paid more than 200 of its Bangladeshi workers since April, and had also retained their passports...

The three major Japanese electronics firms that source from Kawaguchi – Sony, Panasonic, and Daikin – also said in September they were looking into delayed salary payments and alleged human rights violations at Kawaguchi...

Kawaguchi workers have told FMT they fear the three Japanese corporations have decided to stop sourcing from Kawaguchi in light of the ongoing allegations, stating that they have seen the removal of moulds and related equipment by the companies from the Kawaguchi facility.

In an email to Hall sighted by FMT, Daikin said they understood Sony and Panasonic, which account for the majority of Kawaguchi’s transactions, were moving to suspend business with the company.

“Given the business risks, we have determined that we cannot continue doing business with Kawaguchi any longer,” said Daikin...