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Dyson ditches Malaysian supplier over labour practices

By Rajiv MenonMalaysia
1 min read
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Dyson has terminated its relationship with supplier ATA IMS Bhd following an audit of the Malaysian company’s labor 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 whistle-blower 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 a request for comment.

According to ATA, Dyson accounts for almost 80 percent of its revenue.

ATA had in May denied allegations of forced labor at its factories after a prominent rights activist said US authorities were going to scrutinize the company’s work practices.

Questions & Answers

Q.

What prompted Dyson to commission an audit of ATA IMS Bhd's labour practices?

A.

Dyson commissioned an audit earlier this year after allegations were made by a whistleblower regarding unacceptable actions by ATA staff. The results of this audit were received on October 4th, further informing Dyson's decision.

Q.

When did Dyson become aware of the specific allegations against ATA IMS Bhd?

A.

Dyson was informed in September of a whistleblower making allegations about unacceptable actions by ATA staff. Following this, an international law firm was immediately commissioned to undertake a further investigation into the claims.

Q.

What percentage of ATA IMS Bhd's revenue did Dyson account for?

A.

Dyson accounted for almost 80 percent of ATA IMS Bhd's revenue. This significant reliance suggests the termination of the relationship will have a substantial financial impact on the Malaysian supplier.

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