When your employer does not pay salary and other allowances in time, WARNING BELLS should go off, and workers must ACT immediately to protect their RIGHTS. When a employer delays payment of wage - it is also indicative that the employer may abscond without payment later.
Sony, Panasonic and Daikin are looking into delayed salary payments and alleged human rights violations at its Klang-based supplier Kawaguchi Manufacturing Sdn Bhd....In a Malaysia Gazette report on Sept 9, Kawaguchi president George Wang assured 200 foreign workers and 40 local workers that their salary delays would be resolved by the end of the year.
Trusting employer's promises or assurance only is FOOLISH - go get a Court ORDER to secure your RIGHTS now. Does the Kawaguchi president speak on behalf of the owners/shareholders? Later the company may be wound-up or be in a situation of having no money to pay the workers... GO TO COURT now ... Do you even have a written agreement that what is owed will be paid with INTEREST, with the Directors or Shareholders giving a GUARANTEE that if the company does not pay, they will pay the workers...???
It is FOOLISH to simply foolishly accept and/or rely on promises that payment will be made later - the SMART MOVE is to secure your rights and/or entitlement...
1) File an action at the Magistrate Court under Employment Act section 78 - Employee's remedy when employer about to abscond
- see Employee's remedy when employer about to abscond - it is in the Magistrate COURT - s.78 Employment Act, s.7N Sabah Labour Ordinance, s.8N Sarawak Labour Ordinance - FILE NOW
The Court will/can '...order such employer to give security by bond in such sum as to the Magistrate seems reasonable, that he will not leave Malaysia until the Magistrate is satisfied that all the just claims of such employee against him for wages have been paid or settled...'
(3) The bond to be given by an employer shall be a personal bond with one or more sureties, and the penalty for breach of the bond shall be fixed with due regard to the circumstances of the case and the means of the employer.
Commence the action - and name the employer, not just the employer Company, but also the main shareholders, and maybe Directors. WHY? A Company can end up being wound-up, and may not eventually have the needed monies to settle the claims. However, the human shareholders -the OWNERS of the Company will have the needed monies, including Directors...
If the the bond is obtained - ensure that the sureties are human owners and/or Directors, not just some poor employee of the company.
2 - File a CLAIM/TUNTUTAN at the Human Resource Department(Labour Office) - now, if the employer is really going to pay later - he will not contest the claim, and agree to a CONSENT ORDER being recorded, which will be useful in proving the debt if in the event the company later ends up being wound-up, etc
Now, you should also try to GET interest for the late payment - If the employer owes you RM1,500 in wages today - it is grossly unjust to receive RM1,500 6 months or several years later. Try to get interest of 10% or more(or at least 8% which is normal judgment sum interest) - you can also ask for more, say double the sum owed. By not receiving wages NOW, it puts the worker in much difficulty - how does he/she pay for daily needs, pay of his debts(risk of losing house/car/appliances/etc if you do not pay of your monthly debt obligations...).
But sadly, Malaysian labour laws still provides for JUST paying the workers what the employer was supposed to pay then but did not - HOW UNJUST? Amend the laws, when employer fails to pay wages, OT, etc - when the claim is proven, EMPLOYERS must be ordered to pay 3 or 5 times the amount the worker should have been paid then. This would DETER employers from delaying payments due to workers at the time payment is due. {If they only have to pay the SAME amount later - then delay in payment to workers becomes an attractive 'interest free LOAN' which sometimes re-payment can be avoided because many victimized workers do not go to the Labour Department(Court) to lodge and pursue claims. Or, worse in the case of MIGRANT WORKERS who simply would not be able to claim for monies owed, as they will be sent back to their home country - and also these mechanisms to ensure workers are not cheated by employers require the PHYSICAL presence of the worker at the Labour Department(Courts)...Malaysian law still facilitates EXPLOITATION of workers, especially migrant workers - and worker exploitation is also 'Human Trafficking"
(3) Any
employer who fails to pay to any of his employees wages as provided
under section 60D, commits an offence, and shall also, on conviction, be
ordered by the court before which he is convicted to pay to the
employee concerned the wages due for any work done on any such holiday
at the rate provided under section 60D, and the amount of wages so
ordered by the court to be paid shall be recoverable as if it were a
fine imposed by such court. - sec. 100, Employment Act 1955.
c) FILE a CLAIM(Tuntutan) if you want to get your employer what the OWE you. If you just file a COMPLAINT(ADUAN) - the government may investigate, take action against the employer, and impose a FINE for the offence if the employer is convicted - and worker victims get NOTHING.
See report below entitled, 'In KL, four employers fined RM46,500 for paying workers' salaries late'.
4 different companies were FINED, but what happened to the worker victims - there was no order for the employer to pay any compensations(OR even wages due) for the sufferings they faced because their employers - WHY? FINES go to the government, not to the worker victims - and the FINES are so small - unjust and laughable. How many workers were victimized, and for how long? Good for government image showing they act against law-breaking employers - BUT NO JUSTICE FOR THE WORKERS..
- fined RM12,000 for violating Section 19(1) of the
Employment Act 1955 involving the offence of late payment of wages to
employees
-fined RM12,000 for violating Section 43 of the National Wages
Consultative Council Act 2011 (Act 732), namely, failing to comply with
the minimum wage payment of RM1,500.
- fined
RM2,500 for offences under Section 43 of Act 732
- fined RM20,000 in the
Petaling Jaya Sessions Court for violating Section 24D(1) of the
Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446)
Malaysian government MUST act to ensure workers are all paid the moneys owed to them by employers, PLUS compensation/damages. Government should help workers in filing claims too - to expect the poor worker to do it on his/her own, get own lawyers, etc is UNJUST. CARE FOR WORKERS MORE THAT YOU CARE FOR EMPLOYERS...
Japanese electronics giants probe M’sian supplier after delayed salary payments
However, Klang-based Kawaguchi Manufacturing Sdn Bhd has assured its workers that the delay will be resolved by the end of the year.
Earlier this month, it was reported that hundreds of Bangladeshi workers employed by the plastics manufacturing company were allegedly not paid for up to six months, were forced to work seven days a week, subjected to exorbitant recruitment fees, and were housed in overcrowded and unhygienic accommodation.
International non-profit organisation Business & Human Rights Resource Centre (BHRRC) then invited Sony, Panasonic and Daikin to confirm whether they still sourced components from Kawaguchi.
It also urged the companies to disclose any human rights due diligence that they had undertaken prior to entering into contracts with suppliers, and disclose the steps they had taken to investigate and remedy the violations reported.
In response, the three Japanese electronics firms all confirmed they sourced from Kawaguchi, adding that they were looking to find appropriate solutions to the issues raised by the workers. The responses were posted on BHRRC’s website today.
Regarding the supplier, we will work with the relevant government authorities and organisations to conduct a thorough fact-checking investigation, said the senior general manager of Sony Group Corporation’s sustainability department, Mitsu Shippee.Shippee said it would then take
appropriate measures in accordance with Sony’s supply chain code of
conduct – which explicitly prohibits the use of forced labour or
collection of recruitment fees in its facilities and supply chain.
In the event that a supplier is confirmed to have committed a major violation of the code, Sony will take appropriate countermeasures, including requesting for the implementation of corrective actions and terminating business with the supplier.
Tamotsu Namiki from Daikin Industries Ltd’s human rights promotion office said Daikin Malaysia is still purchasing from Kawaguchi and has not decided whether to terminate its contract with the company.
Namiki said Daikin Malaysia visited
Kawaguchi’s premises twice this month to discuss the allegations with
Kawaguchi, after which it received a written commitment from the company
that it would pay its workers’ salaries based on a schedule.
Daikin Industries Ltd and Daikin Malaysia have been continuously monitoring whether such commitments are being kept, said Namiki.
We will make serious efforts to improve the process of human rights due diligence… to ensure that human rights will be respected.
In its response, Panasonic Holdings Corporation said it is investigating the issue and will consider taking necessary measures in cooperation with relevant Malaysian authorities and other stakeholders.
Panasonic said this includes requesting Kawaguchi to take corrective action to safeguard the interests of the impacted workers.
In a Malaysia Gazette report on Sept 9, Kawaguchi president George Wang assured 200 foreign workers and 40 local workers that their salary delays would be resolved by the end of the year.
Wang explained that the delay in salary payments was unavoidable due to a surge in orders from its two main clients, Panasonic and Daikin.
We had to make advance payments to accommodate the unexpected surge in orders from major electronics players like Panasonic and Daikin. We had to inject significant funds to purchase raw materials to meet our customers’ orders, he said.
Wang also said he had contacted the company’s customers to explain the rationale behind the temporary delay in paying the workers their salaries.
They have accepted our explanation, and no immediate action is required from their side. Our business operations continue as usual, Wang had said. - FMT, 17/9/2024
HR Ministry opens probe into slave labour claims against contractor for Sony, Panasonic and Daikin
KUALA LUMPUR, Sept 6 — The Manpower Department has opened investigation papers into allegations of slave labour practices by Kawaguchi Manufacturing Sdn Bhd, the contractor that supplies components to Japanese electronics giants Sony, Panasonic, and Daikin.
Malay Mail understands that the company’s office was raided by the Port Klang Manpower Office (PTK) on September 3 following a complaint by a migrant worker rights activist, Andy Hall, who has worked on multiple cases of foreign worker abuses in the country.
Following the raid, the department said it found evidence that Kawaguchi has not been paying over 200 of their Bangladeshi workforce since April this year. The department also found that the company had withheld the workers’ passports, which is a violation of labour laws and an indicator of forced labour practices.
“PTK Port Klang had carried out an investigation on the premises on 3.9.2024 and found that (Andy Hall’s) complaints had basis.
The employer had failed to pay their workers’ salaries from April to August 2024 as well as discovering that passports of their foreign workers had been withheld,” the office said in an internal memo sighted by Malay Mail.
The investigations into Kawaguchi Manufacturing is the latest in the series of foreign worker-exploitation cases involving Malaysian contractors and companies, several of which have been flagged for abuses that activists alleged to amount to “modern day slavery”.
Some of these companies have been slapped with export bans while Malaysia has had its rating downgraded to the lowest tiers by the US Department’s anti-human trafficking report.
The plight of Kawaguchi’s foreign workforce was first brought to attention in late July by the Bangladeshi press. Some of the workers who were interviewed said they were forced to work for 12 hours despite not being paid.
Many were afraid to speak up because their passports were withheld.
Malay Mail understands that the company’s top management has been served the F Form and was summoned to appear before PTK officers on September 5, alongside all the relevant documents. It is unclear what the outcome was.
Meanwhile, Kawaguchi’s clients have been notified, according to Human Resources Ministry sources, and Hall told Malay Mail that the three companies responded saying they were not aware about what’s happening at Kawaguchi.
Sony EMCS (Malaysia) subsequently responded to Malay Mail to say it was “currently looking into the matter”.
PTK Port Klang has asked representatives from the companies to meet on September 12, a source familiar with the matter said.
Kawaguchi is an international plastic injection molding company and supplies among others plastic components for electronic products such as LCD televisions and microwaves.
Hall alleged working conditions in the Malaysian plastic production industry are rife with practices amounting to migrant forced labour.
“The Malaysian based plastics industry, which is indeed an essential part of many international companies and brands globally supply chains and finished products, currently consists of conditions prevalent for systemic migrant forced labour,” the activist said.
“The industry is surely a primary target for the US CBP and its forced labour related trade enforcement sanctions in the future if things don’t improve.”
Malay Mail could not independently verify Hall’s allegations. - Malay Mail, 6/9/2024
In KL, four employers fined RM46,500 for paying workers' salaries late
KUALA LUMPUR, Feb 24 ― Four employers were fined a total of RM46,500 after they were found to have violated the country's labour laws.
The Department of Labour Peninsular Malaysia (JTKSM) said a company in the hospitality sector was fined RM12,000 for violating Section 19(1) of the Employment Act 1955 involving the offence of late payment of wages to employees at the Shah Alam Magistrate's Court, Selangor on February 8.
In the same court, a company in the security or security services sector was also fined RM12,000 for violating Section 43 of the National Wages Consultative Council Act 2011 (Act 732), namely, failing to comply with the minimum wage payment of RM1,500.
On February 19, a company in the cleaning services sector was fined RM2,500 for offences under Section 43 of Act 732 by the Kuala Terengganu Magistrate's Court.
A company in the mining and quarrying sector was
on Feb 22.
“JTKSM will continue to intensify enforcement and will
take stern action against any employers or companies found to be in
violation of the provisions of the country's labour legislation,”
according to the statement. ― Bernama, Malay Mail, 24/2/2024
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