KUALA LUMPUR – British household appliances giant Dyson has discontinued its relationship with local supplier ATA IMS Bhd after findings involving the company labour practices and allegations emerged following an audit.
According to Reuters, in its exclusive report, ATA is currently being investigated by the United States authorities over forced labour allegations, and has yet to comment on the latest update, and has denied the allegations in the past.
ATA, an electronics manufacturing service provider, has seen its shares slide 30% to their lowest since April last year, after the report was published.
The termination of the relationship with Dyson could affect the company further as the British firm makes up almost 80% of ATA’s revenue.
In a statement to the international wire service, Singapore-based Dyson stated that “despite intense engagement over the past six weeks, we have not seen sufficient progress and have already removed some production lines”.
“We have now terminated our relationship with six months’ of contractual notice. We hope this gives ATA the impetus to improve and enables an orderly withdrawal in the interests of the workers that they employ.”
The latest development marks yet another blow towards Malaysian companies as allegations of forced labour have resulted in at least six firms, especially rubber glove manufacturers being sanctioned by the United States authorities after evidence of forced labour practices were discovered.
Last week, Bloomberg reported that national glove maker Supermax had been barred from exporting its products to both Canada and the United States following findings involving forced labour practices. – The Vibes, November 25, 2021
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