Business

ATA IMS denies forced labour allegations, will undergo external audits soon

Any overtime done voluntarily by staff, says Malaysian electronics manufacturing service provider

Updated 4 years ago · Published on 14 Dec 2021 3:40PM

ATA IMS denies forced labour allegations, will undergo external audits soon
Authorities that inspected ATA IMS Sdn Bhd’s premises in February, May and July said that the charges slapped against the company were for failing to provide minimum standards of accommodation for workers. – ATA IMS pic, December 14, 2021

KUALA LUMPUR – In the wake of criticisms against its labour practices, electronics manufacturing service provider ATA IMS Sdn Bhd (ATA) has assured that the safety and wellbeing of its workforce would remain the company’s utmost priority.

In a statement today, ATA said it will continually improve its environmental, social and governance practices.

“The company is confident that with the range of improvement actions taken, it is compliant with all regulations and standards.

“(ATA) looks forward to getting this confirmed by external audits that are expected to be conducted soon, as well as a compliance audit with the Responsible Business Alliance early next year to assess ATA’s application for full membership to the coalition,” ATA said in a statement.

The company additionally asserts that it adheres to Malaysian labour laws, permitting up to 104 hours on normal working days a month.

Any overtime, said ATA, is done voluntarily, adding that it pays their staff double for working Sundays and triple for public holidays.

As for managers who allegedly disregard these rules, ATA assures that it has taken swift disciplinary action against them.

“These measures include the implementation of a Zero Sunday Overtime policy, effective November 1,” ATA says.

Regarding migrant workers, ATA took part in the National Recalibration Programme (NRP) initiated in November last year.

This allows ATA to regularise undocumented non-citizens either by either enabling them to return to their home countries or be employed by eligible employers.

“However, due to challenges faced by the company in obtaining timely approvals through the NRP, it has ceased participating in the programme.”

Further, ATA strongly claims that the four summonses issued against the company by the Johor Labour department are not part of the allegations hurled against the company in a Reuters report.

Instead, the summonses were issued under the Employees’ Minimum Standards of Housing, Accommodation and Amenities Act 1990.

“The department issued these summonses as the company had accommodated workers in a way that was not in compliance with the legislation.

“These workers, who had decided to return to their home countries, and thus whose permits had expired, were not allowed to be placed at the company’s hostels.

“With the welfare of these workers in mind, ATA went above and beyond usual practices to provide accommodation for these workers, which unfortunately conflicted with the normal regulations,” ATA added.

However, ATA rubbished allegations by a former worker regarding the company’s unsavoury labour practices as reported by Reuters.

Following an audit by a law firm, it was concluded that the allegations made by the worker were “unjustified, unsubstantiated, and unlikely to have taken place”. 

ATA’s response came after the authorities decided to take action against the company over four employment law violations concerning workers’ accommodation and complaints of forced labour.

This followed Dyson’s move to sever its relationship with ATA following an independent audit of the company’s labour practices and a whistleblower’s accusations.

According to the Reuters report, the complaints centred around claims of poor working and living conditions for the company’s migrant workers, who were also said to have been forced to work excessive overtime hours.

Authorities that inspected company premises in February, May and July said that the charges slapped against ATA were for failing to provide minimum standards of accommodation for its workers. – The Vibes, December 14, 2021

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