Dyson faces claims from former workers at Malaysian supplier (updated)

ATA Creativity Global

12/02/2022 03:06

(Adds comments from Dyson, Leigh Day)
    By A. Ananthalakshmi
    KUALA LUMPUR, Feb 11 (Reuters) - Ten former workers from
Dyson's biggest parts supplier, Malaysian firm ATA IMS
 ATAI.KL , are claiming compensation from the home appliance
maker over poor working and living conditions at ATA factories,
a law firm representing them said on Friday. 
    The ex-employees allege that "Dyson was unjustly enriched as
a result of the unlawful, exploitative and dangerous conditions
at the factory", British law firm Leigh Day said in a statement.
    A Dyson spokesperson told Reuters: "These allegations relate
to employees of ATA, not Dyson. If proceedings were to be issued
we would robustly defend them."
    The company said it takes its responsibilities towards
workers employed by its third-party suppliers "extremely
seriously".
    ATA, which makes parts for Dyson's vacuum cleaners and air
purifiers, did not have an immediate comment on the claim.
    Dyson said in November https://www.reuters.com/business/exclusive-dyson-terminates-relationship-with-malaysian-supplier-ata-over-labour-2021-11-25
 it was severing relations with ATA, and ending its contract
within six months, after an independent audit of the company's
labour practices and accusations by a whistleblower. Dyson has
not disclosed the findings of its audit.
    Leigh Day has sent a "letter before action" to
Singapore-headquartered Dyson on behalf of the workers and named
four company units as the defendants in the claim, it said. The
letter is a notice that legal proceedings could be initiated. 
    "In the letter before action, sent by law firm Leigh Day on
behalf of the workers, Dyson is asked to pay compensation to the
workers. If a settlement cannot be reached the case will
progress to the High Court," Leigh Day said in the statement. 
    The letter was sent to Dyson on Dec. 10, Oliver Holland, a
partner at Leigh Day, told Reuters.
    Holland said Leigh Day may initiate judicial proceedings in
the High Court of Justice of England and Wales in March if Dyson
does not engage in settlement talks. 
    He said Leigh Day is representing the workers on a "no win,
no fee" basis. 
    Reuters reported on Nov. 25 https://www.reuters.com/business/exclusive-dyson-terminates-relationship-with-malaysian-supplier-ata-over-labour-2021-11-25
 and Dec. 5 https://www.reuters.com/business/dyson-splits-with-malaysia-supplier-stoking-concern-over-migrant-worker-2021-12-05
 that ATA's mostly migrant workforce did overtime hours
exceeding Malaysia's legal limit of 104 per month, and worked on
Sundays. Citing 11 employees, Reuters also reported on Dec 5 https://www.reuters.com/business/dyson-splits-with-malaysia-supplier-stoking-concern-over-migrant-worker-2021-12-05
 that ATA had coached staff ahead of labour inspections to hide
true working and living conditions, and employed foreigners
without permits.
    ATA acknowledged publicly on Dec. 7 some violations https://www.reuters.com/article/malaysia-labour-dyson-ata-ims-idUSL4N2SS2PM,
 made some improvements, and said it now complies with all
regulations and standards. 
    In a statement to Reuters on Friday, Dyson said it conducts
frequent audits to monitor its supply chain and make
improvements, and that it terminated its contract with ATA after
the supplier failed to take swift action on a recent audit.
    ATA was audited six times between 2019 and 2021, it said.
    "During this period we demanded, and achieved, numerous
improvements for ATA employees, including ensuring that more
than 1,250 ATA workers had recruitment fees reimbursed to them
on a point of principle," it said. 
    "We received the results of the final inspection in October
2021, at which time it became clear to us that ATA management
was not acting swiftly or vigorously enough to respond to
Dyson's demands for further improvements. We therefore moved
quickly to terminate our relationship, with six months' notice,
enabling an orderly withdrawal."

 (Reporting by A. Ananthalakshmi; Editing by Carmel Crimmins and
William Mallard)
 ((ananthalakshmi.as@thomsonreuters.com; Twitter:
@AnanthalakshmiA;))