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InvestmentsExclusive-Dyson terminates relationship with Malaysian supplier ATA over labour practices By Reuters

Exclusive-Dyson terminates relationship with Malaysian supplier ATA over labour practices By Reuters


© Reuters. FILE PHOTO: A Dyson emblem is seen on fifth Ave in New York, New York, U.S., March 19, 2019. REUTERS/Carlo Allegri/File Photo

KUALA LUMPUR (Reuters) – Dyson has terminated its relationship with supplier ATA IMS Bhd following an audit of the Malaysian firm’s labour practices and allegations by a whistleblower, the British agency famed for its high-tech vacuum cleaners instructed Reuters.

Dyson stated it had commissioned an audit of working circumstances at ATA earlier this 12 months, the outcomes of which have been obtained on Oct 4.

In addition, it was knowledgeable in September of a whistle-blower making allegations about unacceptable actions by ATA workers and instantly commissioned a global regulation agency to undertake an additional investigation, Dyson stated.

“Despite intense engagement over the past six weeks, we have not seen sufficient progress and have already removed some production lines,” Dyson stated in an announcement to Reuters. “We have now terminated our relationship with six months’ of contractual notice.”

ATA, which makes elements for Dyson’s vacuum cleaners and air purifiers, didn’t instantly reply to a Reuters’ request for remark.

According to ATA, Dyson accounts for nearly 80% of its income.

ATA had in May denied allegations of pressured labour at its factories after a outstanding rights activist stated U.S. authorities have been going to scrutinise the corporate’s work practices.

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