26 November 2021

Malaysia [...] will investigate British home appliance maker Dyson's decision to sever ties with ATA IMS (ATAI.KL) over the Malaysian supplier's labour practices.

[...]

Malaysia's Human Resources Minister M. Saravanan said the government wanted to hear the reasons from both parties.

"I am informed that Dyson did not want to continue the contract due to (a) worker shortage. There are two different stories," Saravanan told reporters, adding that he was waiting to hear Dyson's side of the matter.

[...]

Dyson and ATA did not immediately respond to his comments.

ATA said on Friday it was taking seriously allegations of forced labour in an audit summary it received from Dyson and claims of physical abuse raised by a former worker.

The manufacturer said as soon as it was notified of Dyson's audit it had appointed an unnamed firm of consultants to review and verify the findings and to take any necessary steps.

ATA said it had hired a law firm in Malaysia to conduct an independent review of the allegations of physical abuse by the former worker, and a detailed report will be finalised soon.

"The preliminary findings of the independent law firm indicates that the allegations may be unjustified," it said.

[...]

ATA said it is subject to regular audits and inspections of the working and living conditions of its workers.

"In none of these audits and inspections were issues of forced labour found in the company," it said, adding that some of the inspections by government departments and the national human rights institution were on ad-hoc basis.

[...]