ATA IMS denies allegation of forced labour as share price tumbles
Summary
Date Reported: 21 May 2021
Location: Malaysia
Companies
Dyson - Buyer , ATA IMS - SupplierOther
Government ( Public Entities )Affected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Bangladesh , Technology, telecom & electronics , Gender not reported ) , Migrant & immigrant workers: ( Number unknown - Nepal , Technology, telecom & electronics , Gender not reported )Issues
Mandatory overtime , Wage Theft , Occupational Health & Safety , Forced Labour & Modern Slavery , Intimidation , Violence , Recruitment Fees , Precarious/Unsuitable Living Conditions , Reasonable Working Hours & Leisure Time , Freedom of Expression , Access to Non-Judicial RemedyResponse
Response sought: Yes, by Media; Resource Centre
Story containing response: (Find out more)
Action taken: Dyson and ATA were invited to provide further information on the allegations in media reports. Dyson provided a response. ATA later committed to work with Sukaham - the Human Rights Commission of Malaysia - to improve its ESG practices. Towards the end of 2021, Dyson decided to cut ties with ATA over the labour concerns.
Source type: News outlet
21 May 2021
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ATA IMS' executive chairman Datuk Seri James Foo told The Edge that the company has not received any communication from CBP regarding the issue.
He also refuted claims that the company is using forced labour in its manufacturing process.
"None of our employees are subject to forced labour. As a contract manufacturer, we are bound to apply the international labour standards adopted by our main customer. We are audited by our main customer and the global retailers of our main customers' products regularly to ensure strict compliance," said ATA IMS when contacted by The Edge.
"Our recruitment practice is fully compliant with international best practices. In particular, we pay for all recruitment costs so that our workers do not pay any recruitment fees on their part. Also, our workers keep their own passports," it added.
The company believes that it provides good living conditions for its workers. "We believe our dormitories are the best in class with a gym, safe deposit boxes, Wi-Fi, cafeteria and other amenities within our compound," it said.
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