KUALA LUMPUR, Aug 16 — A leading United States-based solar panel manufacturer has reportedly revealed that an audit of its manufacturing operations had uncovered unethical and forced labour practices of migrant workers at its Malaysian factory.
The New York Times (NYT) reported that an independent audit by First Solar Inc found that four subcontractors in Malaysia had charged migrant workers recruitment fees in their home countries and withheld their pay and passports.
“We highlight this information openly, not only because of our commitment to transparency and Responsible Solar, but also to raise awareness of modern slavery risks that hide in plain sight.
“Our industry’s work to power the energy transition and enable the fight against climate change does not serve as credits to offset its social and human rights obligations,” First Solar chief executive Mark R. Widmar said in a statement published by the American newspaper.
Checks by Malay Mail found that First Solar, listed here as First Solar Malaysia Sdn Bhd, is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions.
The US company, which started its operations here in 2008, has a large manufacturing factory at the Kulim Hi-Tech Park in Kulim, Kedah. It also has a listed office in Georgetown, Penang.
In addition to Malaysia, First Solar also produces panels in the US and Vietnam, and is planning to open a factory in India.
Investigations in recent years of other factories in Malaysia that produce products like high-end clothing have found evidence of forced labour with migrants hired from countries like Vietnam, Myanmar, Nepal and Bangladesh.
Following the company’s revelations, First Solar was reported saying that it had taken immediate measures such as returning the passports, wages and recruitment fees to the affected migrant workers.
The company added it will also require that the four subcontractors change the methods of how they treat migrant workers and agree to periodic reviews to ensure that they are no longer using forced labour.
“First Solar would continue to use a third party firm to ensure that its partners do not engage in forced labour practices.”
The NYT report also pointed out that the growing demand for renewable energy resources, such as solar panels for the clean energy transition, has increased concern that companies have become more exposed to equipment produced from forced labour.
It said US officials and human rights activists have become increasingly concerned about the use of forced labour in manufacturing solar panels, most of which takes place in Asia.
Founded in 1999, First Solar describes itself on its website as “unique among the world’s ten largest solar manufacturers for being the only US-headquartered company and not manufacturing in China”.
