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KUALA LUMPUR (Reuters) - Dyson has terminated its relationship with supplier ATA IMS Bhd following an audit of the Malaysian company’s labour practices and allegations by a whistleblower, the British firm famed for its high-tech vacuum cleaners told Reuters.
Dyson said it had commissioned an audit of working conditions at ATA earlier this year, the results of which were received on Oct 4.
In addition, it was informed in September of a whistle-blower making allegations about unacceptable actions by ATA staff and immediately commissioned an international law firm to undertake a further investigation, Dyson said.
“Despite intense engagement over the past six weeks, we have not seen sufficient progress and have already removed some production lines,” Dyson said in a statement to Reuters. “We have now terminated our relationship with six months’ of contractual notice.”
ATA, which makes parts for Dyson’s vacuum cleaners and air purifiers, did not immediately respond to a Reuters’ request for comment.
According to ATA, Dyson accounts for almost 80% of its revenue.
ATA had in May denied allegations of forced labour at its factories after a prominent rights activist said U.S. authorities were going to scrutinise the company’s work practices.
Reporting by A. Ananthalakshmi; Editing by Lincoln Feast.