A Dyson logo is seen on 5th Ave in New York, New York, U.S., March 19, 2019. REUTERS/Carlo Allegri
KUALA LUMPUR, Nov 29 (Reuters) - Malaysia's ATA IMS Bhd (ATAI.KL) said on Monday that findings of forced labour allegations in a recent labour audit by its biggest customer Dyson were not conclusive, and that the impact of Dyson's contract termination would be significant.
High-tech home appliance maker Dyson told Reuters last week it was ending its contract with ATA, which derives 80% of its revenue from the firm, after an audit of the company's labour practices and allegations by a whistleblower. read more
Dyson did not disclose the audit findings but ATA, which makes parts for Dyson vacuum cleaners and air purifiers, had said the audits found forced labour allegations, which it viewed seriously. read more
On Monday, ATA said in a statement it only received a summary of the audit and that auditors said they were unable to "conclusively determine whether all allegations are true or false".
The audit summary alleged poor living conditions, issues regarding zero-recruitment fees for foreign migrant workers, unethical recruitment practices by agents, use of irregular workers, concerns of retaliation, unpaid allowances and bonus during COVID-19 in 2020 and unlawful deductions for meals, ATA said.
"The company reiterates that it takes the forced labour allegations seriously and had engaged professional advisers to assist the company to review, verify and validate the audit...
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