Dyson dumps Malaysian supplier ATA over labor concerns

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Dyson's termination of its contract with ATA is a significant blow for Malaysia, which has faced scrutiny over claims migrant workers are being subjected to abusive conditions.

told Reuters it had cut ties with supplier ATA IMS Bhd following an audit of the Malaysian company's labor practices and allegations by a whistleblower, sending ATA shares plunging.

Dyson, privately owned by British billionaire James Dyson, said it received the results of an audit of working conditions at ATA in early October. It said it had also learned in September about allegations from a whistleblower about"unacceptable actions" by ATA staff and had commissioned a law firm to investigate those claims.

In interviews with Reuters, seven current and former ATA employees said they had worked overtime hours in excess of limits under Malaysian law and paid recruitment fees in their home countries to labor brokers, a practice activists have criticized as a form of debt bondage. Limbu, a Nepali citizen, fled Malaysia after the incident, fearing further reprisals, he said. He told Reuters he had recounted his experience about being taken to the police station in an interview with Dyson's lawyers.

 

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