The department said it was alerted in September to complaints of salary arrears, outstanding overtime pay, and unconducive lodging for workers. A probe found that the issues raised had basis, it added.
A labour claim worth RM806,310 was filed against the company in November, involving 57 Bangladeshi workers, as the department opened eight probe papers against Kawaguchi.
“On Dec 14, negotiations were held involving the department, a Bangladeshi high commission representative, and the company, but reached a deadlock.
“The company had suggested that the salary arrears be paid to the workers in instalments until September 2025. This was rejected by the workers, who insisted that the arrears be paid in full by the end of the year,” it said in a statement.
It added that further negotiations would be held today regarding the transfer of 204 migrant workers with valid permits to new employers under a special programme.
“The labour department will ensure that this issue faced by the workers is handled in a just manner and that their welfare is preserved,” it said.
On Friday, Selangor police chief Hussein Omar Khan told FMT the authorities had dispersed a peaceful gathering of 250 Kawaguchi workers who were demanding that the management pay them their outstanding salaries.
However, a video obtained from a worker at the scene showed a group of workers still gathered outside the plant at night.
FMT understands that the workers called off the protest only after midnight, following persuasion from the police and officials from the Bangladesh high commission in Kuala Lumpur.
The protest, involving around 250 workers, came after workers complained about unpaid wages totalling over RM800,000 since May.
Kawaguchi is reported to be a supplier of components to Sony, Panasonic, and Daikin. The three firms said in September they were looking into allegations of delayed salary payments, forced labour practices, and human rights violations at Kawaguchi. - FMT
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