KUALA LUMPUR (April 11): Electronic products manufacturer ATA IMS Bhd said an independent assessment found that its Johor Bahru facilities adhered to both local and international labour standards, four months after allegations of labour issues resulted in the withdrawal of key client Dyson.

ATA was embroiled in forced labour allegations last year, with its contract Dyson — which makes up 80% of its revenue — scheduled for termination in less than two months, from June 1 onwards.

In a statement Monday (April 11), ATA said it had appointed the independent professional services company “which is part of the Big Four” to conduct an independent assessment of its governance and risk management on human rights and labour management practices against the International Labour Organization’s 11 indicators of forced labour.

The third party independent assessment of ATA’s operations validated and confirmed that the company’s activities are governed by human rights principles, laws, and industry best practices and standards, to manage impacts in its areas of operation, ATA said.

The assessment used the Sustainability Assurance Methodology and relevant ethical requirements of the International Ethics Standards Board for Code of Ethics for Professional Accountants (including International Independence Standards), ATA IMS added.

The assessment was conducted for a little over two weeks from March 9 to March 25, 2022.

“With increased awareness globally on the importance of protecting and promoting the rights of local and foreign workers, ATA’s leadership is pleased and certain that the Company will continue making progress in business and human rights with the results of the independent assessment conducted by the Auditor,” the company said.

Dyson sees Malaysia as its second biggest global hub. ATA made parts for Dyson’s vacuum cleaners and air purifiers, according to reports.

Currently, Dyson is preparing to invest US$1.1 billion in neighbouring Singapore as part of its global investment plan announced in 2020.

In February this year, ten former workers of ATA claimed compensation from the home appliance maker over poor working and living conditions at ATA factories.

In response, Dyson told Reuters that the allegations relate to employees of ATA, not Dyson. “If proceedings were to be issued, we would robustly defend them,” the Dyson spokesperson was quoted by Reuters as saying.

Shares of ATA rose half a sen or 1.16% to 43.5 sen on Monday, giving it a market capitalisation of RM523.9 million. The counter has fallen by RM2.135 or 83.4% since the forced labour allegations first came to light.