Unpaid Wages to Migrant Workers: A Threat to Malaysia’s Economy and Reputation
Migrant Workers Face Unpaid Wages and Debt
Kawaguchi Manufacturing Sdn Bhd, a plastics supplier for companies like Sony, Panasonic, and Daikin, has agreed to pay RM3 million in back wages to 251 Bangladeshi workers. The company has been accused of forced labour, and the settlement, reached after months of negotiations, will see arrears payments commence in January next year.
Government Response Criticized
Former MP Charles Santiago has warned that the country risks drawing unnecessary global attention and jeopardizing its exports if it fails to address issues involving unpaid wages to migrant workers. Santiago, an outspoken advocate for migrant worker rights, welcomed Kawaguchi’s settlement but criticized the government for its delayed response.
"The government waits too long to act. This hurts the country’s reputation and makes us look bad globally. The human resources ministry should be more proactive," he said.
EU’s Corporate Sustainability Due Diligence Directive
Santiago highlighted the importance of addressing these labour violations, citing the European Union’s Corporate Sustainability Due Diligence Directive, set to take effect next year. The directive will require businesses to ensure their supply chains are free from forced labour and modern slavery.
"A failure to address these labour violations could see Malaysian products banned from the EU market and may spook investors, which would in turn impact the economy," he said.
Workers Face Debt and Financial Strains
Santiago said migrant workers enter the country having borrowed large sums of money at high interest rates to pay recruitment fees. Salary delays would trap them in debt, he said.
Activist Calls for Fairer Settlement
Separately, independent migrant worker rights specialist Andy Hall described the government-mediated settlement as "offensive and inadequate." Hall said workers would have to wait one month to receive the first instalment payment and an entire year for full payment.
"These conglomerates must step in to remediate the workers in line with international business and human rights standards," he said.
Conclusion
The unpaid wages to migrant workers in Malaysia highlight the need for the government to take proactive measures to address labour violations and ensure fair treatment of migrant workers. Failure to do so could have serious consequences for the country’s economy and reputation.
FAQs
Q: What is the settlement agreement between Kawaguchi Manufacturing Sdn Bhd and the Bangladeshi workers?
A: Kawaguchi Manufacturing Sdn Bhd has agreed to pay RM3 million in back wages to 251 Bangladeshi workers.
Q: Why is the settlement considered "offensive and inadequate" by Andy Hall?
A: Andy Hall believes that the settlement is unfair because workers will have to wait one month to receive the first instalment payment and an entire year for full payment.
Q: What are the implications of failing to address labour violations in Malaysia?
A: Failure to address labour violations could see Malaysian products banned from the EU market and may spook investors, which would in turn impact the economy.