Dyson dumps Malaysian supplier ATA over labor concerns

dyson dumps malaysian supplier ata over labor concerns

Sumary of Dyson dumps Malaysian supplier ATA over labor concerns:

  • Article content KUALA LUMPUR — Dyson has terminated its relationship with supplier ATA IMS Bhd following an audit of the Malaysian company’s labor practices and allegations by a whistleblower, the firm famed for its high-tech vacuum cleaners told Reuters.
  • Shares in ATA, which makes parts for Dyson’s vacuum cleaners and air purifiers, tumbled 30% to their lowest since April 2020 after the Reuters report.
  • According to ATA, Dyson accounts for almost 80% of its revenue.
  • Article content The termination is also a significant blow for Malaysia, a key electronics manufacturing hub that has faced scrutiny this year over exploitation of foreigners who make up a large share of its factory workforce.
  • Dyson, privately owned by British billionaire James Dyson, said it received the results of an audit of working conditions at ATA in early October.
  • “Despite intense engagement over the past six weeks, we have not seen sufficient progress and have already removed some production lines,” Singapore-headquartered Dyson said in a statement to Reuters.
  • ” Article content ATA had in May denied allegations of forced labor at its factories after a prominent rights activist said U.S. authorities were going to scrutinize the company’s work practices.

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