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27 July, 2026Institutional investors are being urged to press Flex Ltd. on union suppression at its Penang, Malaysia plant, as the electronics manufacturer prepares for its annual general meeting in Austin, Texas, on 5 August.
In July 2025, workers at Flextronics Technology (Penang) Sdn Bhd, a Flex subsidiary, held a secret ballot on union recognition. Turnout fell 424 votes short of the 50 per cent threshold required under Malaysian law, but 92 per cent of those who did vote backed recognition. The Malaysia Electronics Industry Employees’ Union Northern Region (EIEUNR) says the shortfall followed blocked access to voter lists, delayed transport and supervisors discouraging attendance. Eighty workers filed police reports alleging they were prevented from voting. IndustriALL wrote to Flex chief executive Revathi Advaithi in July 2025 calling on the company to stop the practices; the union says Flex did not act on the request.
Flex had been named one of the world’s most ethical companies for a third consecutive year in March 2025, months before the disputed ballot. The company recently joined the S&P 500 Index on June 22. Flex is also a supplier of Apple Inc., according to Apple’s Supplier List for Fiscal Year 2023 (most recent available).
In March 2026, IndustriALL filed a formal complaint with the ILO committee on freedom of association, naming Flextronics Penang as one of twelve Malaysian companies in a documented pattern of union busting, in violation of ILO Convention 98, which Malaysia has ratified.
A gap between policy and practice
The Global Unions’ Committee on Workers’ Capital (CWC) connects trade unions and pension fund trustees to uphold fundamental labour rights and trade union priorities in investments. The CWC published an investor brief on Flex in May 2026 and held a pre-AGM webinar for investors in June with union representativesproviding context and updates on the situation in Malaysia. The brief and the webinar set out the gap between Flex’s public commitments on the one hand, including a human rights policy that explicitly recognizes freedom of association, and the allegations from Penang on the other. It also questions whether Flex’s Responsible Business Alliance social audits can detect this kind of risk.
IndustriALL ICT electrical and electronics sector director Alexander Ivanou says:
“We regret that FLEX ignored our call and that these unfair labour practices led to a failed ballot. We will escalate this case internationally and urge the Malaysian government to take strong action against FLEX, ensuring compliance with ILO Convention 98 on the Right to Organize and Collective Bargaining.”
The ILO complaint remains pending before the committee on freedom of association. EIEUNR continues to call for a re-run ballot free from employer interference.