Dyson splits with M’sia supplier ATA — Company clarifies migrant worker treatment concerns, says workers do overtime voluntarily

Malaysia – In response to a report regarding the treatment of its migrant workers, Malaysian electronics manufacturing service providers ATA IMS Bhd clarified that it was committed to ensuring the wellbeing of its local and foreign workers.

Last month, British technology company Dyson announced that it would be cutting ties with ATA, following a recent independent audit on worker treatment and allegations by an unidentified whistleblower.

ATA supplied Dyson with parts for its high-end vacuum cleaners and air purifiers, reporting the partnership accounted for 80 per cent of the company’s revenue.

On Dec 5, Reuters reported that ten current and former ATA employees and a former executive had disclosed information on the work conditions imposed by ATA.

They said the company’s primarily migrant workforce had 15-hour shifts a day and often had to skip rest days to meet the demand.

ATA employees also claimed that the firm hired thousands of foreigners without work permits.

Workers were then told to keep their working and living conditions hidden from Dyson and labour inspectors.

On Dec 7, ATA released a media statement, which was shared with The Independent Singapore, highlighting it was firmly committed to the wellbeing of employees and ethical practices.

“ATA wishes to provide clarifications to the report, which it hopes will help readers to have a better perspective on ATA’s continuous and concerted efforts in addressing and improving its labour and social compliance standard and practices,” said ATA.

Regarding worker overtime, the company said it strictly adheres to Malaysian labour laws, which permit up to 104 hours of normal working days in a month.

“If workers perform overtime, it is solely on a voluntary basis,” said ATA.

It noted that workers are paid double for working on Sundays and triple on public holidays.

ATA admitted that a few managers have allowed their workers to work beyond the number of hours permitted in certain months.

ATA views this seriously and has taken remedial measures effective immediately to ensure this does not happen again.

“The company has started implementing a zero overtime on Sunday policy that resulted in the resignation of close to 300 local and foreign workers in the first week of December,” said ATA.

The firm clarified that, to date, all workers on the premises have valid work permits.

ATA noted that challenges regarding work permits occurred during the movement control order when relevant government offices were running at limited capacity.

Remedial action has also been taken against the supervisor that disclosed a “highly uncommon incident” of coaching employees on what to say to auditors.

Furthermore, ATA highlighted that it had whistleblowing policies and channels available in multiple languages yet did not receive such complaints through these methods.

Committed to ensuring the wellbeing of its local and foreign workforce, ATA expressed confidence in passing the upcoming audit for its Corporate Social Responsibility and Environmental, Social and Governance compliance.

Recent visit from human resources minister

ATA also shared a media statement highlighting a visit from Malaysia’s human resources minister Datuk Seri M Saravanan on Wednesday (Dec 8).

The minister, who was accompanied by other government officials, “was pleased with the conducive working environment at the company’s factories and found ATA’s employees’ accommodations at a satisfactory level,” said ATA.

“The Malaysian Government has stringent measures to comply with International Labour Organization’s standards, and that ATA’s positive compliance with Malaysia’s rules and regulations shows that the organisation is moving towards achieving the industry benchmarks for ESG improvement. Speaking to some of the employees, I am assured that their welfare is being taken care of,” said Mr Saravanan. /TISG

Read related: 15-hour shifts, no rest days, hiring without work permits: Migrant worker treatment highlighted in Dyson’s split with M’sia supplier

15-hour shifts, no rest days, hiring without work permits: Migrant worker treatment highlighted in Dyson’s split with M’sia supplier