Panasonic And Samsung Were Acused Of Exploiting And Underpaying Workers In Malaysia

By Luis Fran , Nov 21, 2016 07:05 PM EST

Electronic brands giants Samsung and Panasonic have been accused of exploiting and underpaying their Nepalese workers in the supply chains located in Malaysia, who was also told that they must pay large fines if they wish to return to their country before the contract´s end, and had their passports confiscated.

The Workers Were Treated As Slaves

According to The Guardian, the workers claimed that they were even forced to work up to 14 hours on their feet without resting and with restricted toilet breaks. Also, they told that they felt cheated and trapped in the factory jobs, creating or assembling the components for household electrical products that are sold on the global market. Although some of those who work for Samsung were employed directly by the company, the majority were hired through a labor supply company, while those who work for Panasonic were employed by subcontracting firms.

While both companies has forbidden their suppliers from confiscating the passports of the workers or charging the migrants some recruitment fees, most of them had to pay up to $1,247 to recruitment agents in Nepal in order to secure their jobs with the electronic brands giants Panasonic and Samsung.

Panasonic And Samsung´s Response To The Allegations

According to the International Business Times, the South Korean company said through its spokesperson in a response to the allegations that Samsung comply fully with the Electronics Industry Citizenship Coalition´s Code of Conduct, and haven´t found any evidence of violations in the hiring process of migrant workers who were hired directly by the manufacturing facility in Malaysia. Also, the spokesperson told that if any violations have been uncovered, Samsung will make immediately suspend its business with the companies that are found to be in violation.

By its part, Panasonic said through a statement that the company will conduct a full investigation of this issue since it takes very seriously these allegations. Also, it said that if it was discovered that one of its suppliers violated such laws or regulations, Panasonic will take any kind corrective action immediately.

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