About 500 workers out of job during Ramadan as JVCKenwood factory closes?

It is so unjust when these multi-national companies shut down their factory leaving so many workers out of a job - what is worse is that this happens during the Muslim fasting month...

What is worse, is that the news report seems to suggest that they may merely be relocating the factory to Thailand - WHY? Was it because Thailand was giving 'better deal or benefits' than Malaysia or Selangor? 

This is what happens to many a multi-national factory, for them loyalty to their workers or worker wellbeing/welfare may not be a consideration ... for them, it is possibly 'which country/State gives a better 'deal' '. 

For, JVC Kenwood, maybe there was some other business reason for the move...we hope that the government and the unions will look into this matter.

In Shah Alam, they already had loyal employees - who knew the work and had the required training and skills...so why move at all? It is alleged in the news report that JVC Kenwood informed them well in advance, and have given them a good termination package... if so, then this really is a good practice. Should we have laws/guidelines that at least 6 months notice should be given in such cases?

Did the Federal Government or the State Government know about this closure - did they make every reasonable effort to keep this JVCKenwood factory from closing down and moving away? Are they now doing anything to help these workers quickly find new jobs - or do they only bother when it is a government-owned private company like MAS...

What is the Malaysian Trade Union Congress(MTUC) doing to help...or more relevant what is the relevant Unions doing?

Why was the story about the closure of these factory carried by BERNAMA and the main stream media?

Where is the MP and the ADUN of this area?

Here, we are talking about 500 workers, now out of a job, who have families and dependents, who most likely also have monthly financial obligations - like servicing housing and other loans..

And during this time of unemployment, will the government provide some financial assistance - there has been calls for Malaysia to emulate Thailand where there is temporary financial assistance for the unemployed until they find another job - BR1M is not enough...

Malaysian workers want UNEMPLOYMENT BENEFITS just like Thailand?

MTUC CALLS FOR EMERGENCY FINANCIAL ASSISTANCE FOR WORKERS OUT OF WORK

What may of be of interest was that this may have been the same JVC factory(or maybe not), where there some some worker rights violation which saw many groups(about 90) come in to support -

UPDATE: JVC Unjustly Discriminates Against Burmese Migrant Women Workers Case > sorry suddenly, I cannot find this post on my blog - Mysterious. anyway, the contents of the page are pasted below - maybe some technical glitch

In any event, we were very happy then with the way JVC Kenwood responded and acted upon the matter and resolved the issue... I quote a paragraph from the letter of JVC Kenwood then in 2010..

We appreciate your concern about the human rights of workers, particularly’ in Malaysia. Please be assured that all of the companies in the JVC Kenwood Group, including JMM, are committed to honouring the employment rights of all of our workers, whether they are local or foreign, or whether they are hired directly or through dispatching agencies.

Could the closure of this JVC factory have been prevented?  Maybe YES, maybe NOT - in any event assistance may definitely be needed for these possibly unemployed 500... 

It is a trend for many a multi-national companies to shut down and move their factories to other countries (or places), and such move affect workers and their families. There is a need to look into this matter -  What can be done? Maybe, States could get an assurance that the factory would be operational for at least a certain number of years - and, if workers and the States knew this, they could plan how to deal with this problem > Maybe States could plan on getting in another company to open up near the location which would be able to take-in workers no longer needed by the 'shutting down factory'. States really has this duty and responsibility for its people...sometimes, business may have no choice...

JVC factory in Shah Alam ceases operations

Some of the retrenched staff at the JVCKenwood Malaysia Sdn Bhd plant in Shah Alam. — Picture courtesy of Facebook Mohammad Azri Azman

By:
Sim Wie Boon

SHAH ALAM, July 1, 2015:

About 500 workers from consumer and professional electronics devices corporation — JVCKENWOOD Malaysia Sdn Bhd — were laid off as part of the Japanese company’s plans to relocate its operations, shutting down its plant here.

News of the factory’s official closure today had been making its rounds over social media, attracting netizens to lament on the workers’ plight and the state of economy.

While some described the sudden closure as being unfair to the workers, checks by The Rakyat Post revealed that this was not the case.

“The workers were not laid off suddenly as they were already notified of the closure earlier this year,” a factory worker said.

While some of the staff were retrenched, appropriate compensation was paid and JVC had also assisted others to secure employment elsewhere.

“They told us that the factory operations were moving to Thailand,” said the worker.

It was reported last year that JVC had cut its workforce globally by 14% to just under 20,000 people and about 90% of production now took place mostly in Indonesia and Malaysia.

Checks on jobstreet.com have shown that JVC is still hiring staff for its Tampoi plant in Johor.

Similarly, a few metres away, Ansell Malaysia Sdn Bhd’s operations have also ceased and its workers were retrenched yesterday. The Australian company made healthcare protective gear.

A worker on site said: “They are moving their operations to Malacca. They have already told us about this six months ago and compensation was also paid out.” - Rakyat Post, 1 July 2015

UPDATE: JVC Unjustly Discriminates Against Burmese Migrant Women Workers Case

I have just received a reply from JVC Manufacturing Malaysia Sdn Bhd, whose contents has been copied and is pasted here. This letter is in response to the Media Statement entitled "JVC Unjustly Discriminates Against Burmese Migrant- Women Workers Who Claim Worker Rights" which has been endorsed by 90 groups. A copy of the said joint media statement was sent to JVC. 

JVC

JVC MANUFACTURING MALAYSIA SDN. BHD.(172773H)                   Tel No.: 03-55416688(VIDEODIV)
(Formerly known as JVC Video Malaysia Sdn. SM.) .                                                 03-55413377 (AUDIODIV)
Lot No.1, Persiaran Jubli Perak, Jalan 22/1, Seksyen 22, 
40300 Shah Alam,                                                                                              Fax No.: 03-55422168 (VIDEO DIV)
Selangor Darul Ehsan, Malaysia.                                                                                  03-55416698 (AUDIO DI’))
Postal Address:P.O. ,Box 7111,40702 Shah Alam,
Selangor Darul Ehsan, Malaysia.

19.November.2010

Messrs. Charles Hector & Pranom Somwong
Lot 3585A, Kampung Lubuk Layang
Batu 3, Jalan Metakab
28000 Temerloh
PAHANG, Malaysia
 
Dear Sirs,
 

The President of JVC Kenwood is in receipt of your letter dated 31st October 2010, concerning the standards of human and workers rights at JVC Manufacturing Malaysia Sdn. Bhd. (JMM).

JMM has investigated the contents of your letter and please be informed that we have already appraised the said important matters. We are committed to cooperate with all parties concerned to rectify any problems and ensure that improper occurrences are avoided in the future. In this regard, a joint resolution has been reached after discussions with the concerned Myanmar workers, their employment agency Fast Link Trans Sdn. Bhd., the Malaysian Trade Union Congress, the Electrical Industry Workers Union and JMM.

For verification on the above, please feel free to communicate with Mr Peter Kandaiah, Sr.Industrial Relations Officer, MTUC (mtuc.kaäkimail.com) or Mr. Maniyam Poovan, Gnereal
Secretary, Electrical Industry Workers Union (eiwu@streamyx.com).

We appreciate your concern about the human rights of workers, particularly’ in Malaysia. Please be assured that all of the companies in the JVC Kenwood Group, including JMM, are committed to honouring the employment rights of all of our workers, whether they are local or foreign, or whether they are hired directly or through dispatching agencies.

Sincerely,

Mr Yoshihiro Tamaki
Managing Director
JVC Manufacturing Malaysia Sdn. Bhd.

We would be verifying the matters alleged by JVC in their letter, and will try our best to keep you all informed about the latest developments in this case.

Media Statement – 21/10/2010 (90)

JVC Unjustly Discriminates Against Burmese Migrant

Women Workers Who Claim Worker Rights

We, the undersigned 79 civil society organizations and groups, would like to express our serious concern that JVC has indicated that they will not re-new the employment contracts of Pa Pa Aye and 15 other Burmese women migrant workers, who lodged a claim at the Labour Department claiming worker rights that the JVC company had violated, amongst them the wrongful deduction of their wages to recover levy that employers have to pay when they employ foreign workers. The other 7 workers, who complained, whose contract was renewed in August, will also be terminated and repatriated. The information contained in this statement has been provided by the affected workers.

JVC has its factory at Lot. No.1, Persiaran Jubli Perak, Jalan 22/1, Section 22, Shah Alam, 40702 Shah Alam, Selangor, Malaysia, and they manufactures cameras, video cameras and audio equipment components, amongst others.

On 21/7/2010, Pa Pa Aye and 22 other women migrant workers lodged a complaint at the Subang Jaya Labour Office in Malaysia. Amongst their demands were for the return of monies wrongly deducted from their wages for levy the employer had to pay to the Malaysian government for employing migrant workers, other unlawful deductions like transfer fees, saving funds, etc amounting to about RM3,500-00, and for the return of the Passports which are still wrongly being held by  the employer . They were also claiming for the balance of the wages that they were entitled. According to the workers, the employer was to pay them much more about RM50 per day but they were only paid the sum of RM23.

On 6/8/2010, after night shift when the women workers were being transported back to their homes, their bus took a different route, and suddenly stopped where the agent was waiting. The agent then called one of the Burmese women migrant workers who had complaint to the Labour Department and asked her to leave the bus and follow him. The workers suspected that the agent was trying to get the worker sent back to Burma, and they stood together and prevented the agent from taking the worker. The workers then lodged a police report about this incident. There have also been other cases of harassment, whereby in one incident 3 men entered the women’s hostel and threatened them.

The workers, through their representatives, which included an officer from the Malaysian Trade Union Congress (MTUC) also complained about this incident to JVC, and JVC gave the assurance that this will not happen again and they guaranteed that all workers could continue to work in JVC.

On 12/8/2010, the agent tried to force the workers to sign a new contract, but all workers refused to sign it. The pressure on the workers to sign the new contract took place at the factory compound. Later on the same day the JVC’s Human Resource Manager, one Mr. Mazlan, and the HR Assistant Manager, one Ms. Ida, also tried to pressure the workers to sign the new contracts. The new contract was written in English only (just like their old contract). The workers to date do not have a copy of their old contract, as they were never given a copy. The new contract allegedly stated that their daily salary will be reduced to RM21, which is RM2 less than what the workers have been getting until now.

On 25/8/2010, the Burmese workers informed us that JVC had summarily dismissed 30 Sri Lanka women migrant workers in retaliation for their demand that JVC pay them their promised monthly salary of RM750. After the dismissal JVC and the agent, Fast Link Trans, began forceful repatriation of the workers. On 28/8/2010, 8 Sri Lankan workers were allegedly sent home. These workers apparently never received the amount owing them and/or any compensation for premature termination of their contract.

On 8/9/2010, JVC’s Human Resources Officer, in the presence of the Labour Officer and the agent’s representative from a company known as Fast Link Trans, tried to return to the Burmese workers the amount they said was the levy that had been wrongfully deducted from the wages and asked the workers to sign a document which was in English. The workers refused as the amount offered was far less than the sum deducted, and  they did not want to sign any document which was in a language they did not know.

The company also refused to give a copy of the document to enable them to get an independent person who spoke Burmese to translate its contents to them.

On 28/9/2010, the agent informed the workers that when their current annual contract expires, their contracts will not be renewed and they will all be sent back to Burma. The contracts of 15 of these workers’ contract will expire in October, and the rest by the end of the year. Pa Pa Aye’s own contract expires in early November. The contracts of 7 others which expired in August have already been renewed. Later, on about 7/10/2010, the agent informed the workers that all 23 of them will be terminated and sent back to Burma. The process of forced repatriation of the Burmese workers has already begun with one worker being sent back to Burma on 9/10/2010.

It must be stated that according to the workers, when they came to Malaysia to work with JVC the agreement was that they will be employed for a period of at least 3 years, but when they arrived and started working, they were made to sign 1-year contracts with the verbal assurance that it will be renewed every year for at least a total of 3 years. The threat of early termination and deportation is also wrong and discriminatory as JVC has continued to renew contracts of others who had started work around the same time as these Burmese migrant workers.

Any early termination, and/or non renewal of the 1-year employment contracts by JVC can reasonably be seen as a retaliation of the company against workers who have elected to claim their rights as workers. Their case at the Labour Department is pending, and a termination and repatriation back to Burma will mean that the workers will not be able to continue to pursue their claim in the Labour Department/Court as the presence of the worker in the hearing of their claims against the employer is compulsory, and their absence will mean that their case will just be struck off,

We, the undersigned groups, call upon JVC to respect worker rights and their right to access to justice and not cause these 23 Burmese workers to be terminated and deported.

We  urge that JVC to respect the law and the legal process initiated by the lodging of the complaint by the workers at the Labour Department, and to respect and abide with the outcome of the hearing at the Labour Court. Workers should not be terminated and/or discriminated against by reason of the fact that they choose to demand for their rights or better rights as workers. For those who have already been repatriated back to their country of origin, including those workers from Sri Lanka, JVC must compensate them for their expenses in coming to Malaysia to work, and for the early termination of their employment.

We call on JVC to act justly and not to terminate these workers, and to renew their contract so that they can pursue their claims until completion. JVC should also adhere to their earlier promise that these workers will be employed for a period of at least 3 years, for migrant workers do expend a lot of money (850-1,000 USD) when they do come to Malaysia to work and any early termination and breach of rights will only leave these workers in a worse situation as they may not be even to settle the debts they incurred in coming here to Malaysia to work.

We call on Human Rights Commission of Malaysia (SUHAKAM) to inquire into this complaint concerning the violation of worker rights by JVC.

We also call on the Malaysian government and the Human Resource Minister to ensure that no workers are terminated and/or discriminated against by reason of the fact that they have stood up to claim their rights as workers.

The Malaysian government should also ensure that no migrant worker is terminated and/or repatriated back to their country of origins until the employer has fully settled all outstanding worker claims and/or payments. If migrant workers are terminated, the Malaysian government must ensure that these workers are allowed to stay and work legally in Malaysia until all outstanding claims and legal processes are settled. If special passes and visas are required to ensure workers ability to stay and work legally, it must be given gratis without requiring the workers to pay anything. Worker cases must be expedited, and independent translators should be available at all Labour Departments and courts.

Labour rights must take precedent over immigration law. Do not deport until worker claims are determined and settled by Labour Department and/or courts.

Charles Hector

Pranom Somwong

For and on behalf of the following 90 organizations

ALIRAN,  

Asia  Pacific Forum on Women ,Law and Development ( APWLD)

Asia Pacific Mission for Migrants (APMM)

Asian Migrants Center (AMC)

Assistance Association for Political Prisoners (Burma)

Bahrain Center for Human Rights

Bahrain Youth Society for Human Rights

Bangladesh Burma Border

BAYAN USA

BUGKOS

Building and Wood Workers International Asia Pacific Regional Office

Burma Campaign, Malaysia

Burmese Women's Union (BWU)

Coalition To Abolish Modern-Day Slavery In Asia

Committee for Asian Women (CAW)

Communication Workers Union P&T Branch Victoria

Community Development Services (CDS), Sri Lanka

Coordination of Action Research on AIDS & Mobility (CARAM-ASIA)

Cordillera Alliance Hong Kong 

Democratic Party for a New Society (DPNS), Burma

FICAP – Aichi

Filipino Migrants Center – FMC

Filipino Migrant Workers Union Chapter Rd Chapter 

Forum for Democracy in Burma

GABRIELA – Japan

Gabriela-Taiwan

Grassroots Human Rights Education & Development (GHRE-FED), Thailand

HOME, Singapore

Human Rights Education Institute of Burma

IHI Action Group (Iwi Have Influence), New Zealand

IMA Research Foundation, Bangladesh

Institute for National and Democracy Studies (INDIES)

Kachin Women's Association, Thailand

KAFIN – Nagoya

KL & Selangor Chinese Assembly Hall Youth Section

Lawyers for Human Rights & Legal Aid (LHRLA), Pakistan

League of Filipino Seniors (LFS)

Legal Support for Children and Women (LSCW), Cambodia

MADPET - Malaysians against Death Penalty and Torture

Malaysia Youth and Students Democratic Movement (DEMA)

MAP Foundation, Thailand

May 1st Coalition, Co-Coordinator, USA

Mekong Migration Network ( MMN)

Migrante Aotearoa New Zealand

Migrant Forum in Asia (MFA) 

Migramte Australia

Migrante-Denmark chapter

MIGRANTE Europe (Amsterdam, the Netherlands)

Migranteng Ilonggo sa Taiwan

Migrante International

Migrante international - Hsinchuang chapter

Migrante International - Taiwan chapter

Migrante Melbourne

Migrante-Middle East and Migrante-Saudi Arabia chapter

MIGRANTE – Nagoya

Migrants  Trade Union (MTU), Korea

Migrant Workers Network – New Zealand

National League for Democracy [NLD (LA)], Malaysia

Nepal Institute of Development Studies( NIDS) ,NEPAL

Network for Empowerment of Women in Vietnam

Network of Action for Migrants in Malaysia (NAMM)

Parti Rakyat Malaysia (PRM)

Penggerak Belia Zon 23 MPSJ, Malaysia

Persatuan Masyarakat Selangor & Wilayah Persekutuan, Malaysia

Persatuan Penduduk Taman Muhibbah, Malaysia

Persatuan Prihatin Komuniti KL & Selangor

Philippine Society in Japan – Nagoya

PINATUD A SALENG TI UMILI

PINAY (Montreal)

POURAKHI, Nepal

Pusat Komas, Malaysia

Persatuan Sahabat Wanita Selangor, Malaysia

Rights Jessore, India

Shan Refugee Organization (Malaysia)

Shan Women Action Network (SWAN), Thailand

St. John's Cathedral HIV Education Centre, Hong Kong

Suara Rakyat Malaysia (SUARAM)

Tenaganita, Malaysia

The Communications Union (CEPU), Victoria Branch

The Development Action for Women Network (DAWN), Philippines

The Federation of Trade Unions Burma (FTUB)

The Filipino Women's Organization in Quebec

The National Human Rights Society (Persatuan Kebangsaan Hak Asasi  Manusia, HAKAM), Malaysia

The Shwe Gas Movement

Unite Union New Zealand

Women Empowerment Association

Women Petition Committee

Workers Hub for Change (WH4C)

Yaung  Chi Oo Workers Association  ( YCOWA)

Yayasan Annisa Swasti (YASANTI), Indonesia