Dyson terminates relationship with supplier ATA over labour practices
Dyson has terminated its relationship with supplier ATA IMS Bhd following an audit of the Malaysian company's labour practices and allegations by a whistleblower, the British firm famed for its high-tech vacuum cleaners told Reuters.
Dyson said it had commissioned an audit of working conditions at ATA earlier this year, the results of which were received on Oct 4.
In addition, it was informed in September of a whistleblower making allegations about unacceptable actions by ATA staff and immediately commissioned an international law firm to undertake a further investigation, Dyson said.
"Despite intense engagement over the past six weeks, we have not seen sufficient progress and have already removed some production lines," Dyson said in a statement to Reuters.
"We have now terminated our relationship with six months’ of contractual notice."
ATA, which makes parts for Dyson's vacuum cleaners and air purifiers, did not immediately respond to Reuters' request for comment.
According to ATA, Dyson accounts for almost 80 percent of its revenue.
ATA had in May denied allegations of forced labour at its factories after a prominent rights activist said US authorities were going to scrutinise the company's work practices.
- Reuters
Big loss to Malaysia.
ReplyDeleteATA IMS is a major contract manufacturer in Johore, and Dyson is their largest customer.
Thousands if jobs could be lost of they don't manage to get this resolved properly.
I am surprised to this day major employers in Malaysia still run afoul of Labour practices standards, especially related to foreign workers.
The standards are openly published, and there are good professional consultants who can help you navigate them.