More than 250 Bangladesh workers who reportedly were not paid for seven months last year are to receive a significant amount in settlement of their dispute with their former employer.
The settlement was reached by the Japanese multinational Panasonic and the watchdog group International Rights Advocates (IRAdvocates) which took up the workers case.
The foreign workers were formerly employed by Kawaguchi Manufacturing Sdn Bhd, a supplier of components to Panasonic.
The amount of the settlement was not disclosed, but FMT was made to understand that it was a significant sum.
Migrant labour rights activist Andy Hall, who referred the Kawaguchi case to IRAdvocates late last year, said he was pleased that there had been some level of accountability in the matter.
“I am relieved that the workers debt has finally been fully removed, they have been compensated for the salaries that Kawaguchi didn’t pay and they have been provided a substantial amount of additional compensation for their suffering,” he said.
Terrence Collingsworth, founder and executive director of IRAdvocates, said Panasonic provided the workers with “much-needed financial assistance” through reimbursement of recruitment fees which the workers said they had paid.
Collingsworth said Panasonic was also monitoring whether Kawaguchi is fulfilling the payment of unpaid salaries promised to the workers. He commended Panasonic for conducting audits and taking corrective measures after allegations of wrongful labour practices at Kawaguchi.
Three months ago, Collingsworth had also praised Sony, another Japanese firm, for providing monetary aid to Bangladeshi workers.
Kawaguchi had reportedly agreed in December to pay over RM3 million in overdue salaries to their foreign workers, with the labour office in Putrajaya agreeing to arrange for the workers to be employed by other companies.
The company reached the decision five days after the workers held a peaceful protest outside the factory in Port Klang to demand the salaries owed to them.
However, the workers alleged that the company paid only the first instalment of RM250,000 and then defaulted on the remaining amount.
In December, air-conditioner manufacturer Daikin was reported to have contributed US$12,000 in emergency food and medical aid and an additional amount of financial aid to each worker.
Daikin, Panasonic and Sony jointly through the Responsible Business Alliance were also reported to have provided RM20,000 as reimbursement of recruitment fee for each worker.
