HOUSEHOLD appliance manufacturer Dyson has ended relationship with supplier ATA IMS Bhd, after allegations of forced labour and a subsequent audit, according to Reuters.

The news wire said ATA was already in the spotlight in the US, while shares in the company plummeted 30%. While ATA did not comment on Dyson’s move, it has previously stated that Dyson accounted for 80% of its business.

According to Dyson, it was tipped off about forced labour by a whistle-blower, prompting it to launch an investigation.

“Despite intense engagement over the past six weeks, we have not seen sufficient progress and have already removed some production lines,” Dyson said to Reuters.

“We have now terminated our relationship with six months’ of contractual notice. We hope this gives ATA the impetus to improve, and enables an orderly withdrawal in the interests of the workers that they employ.”

ATA had previously denied accusations of forced labour, but it is understood US authorities were preparing their own investigation following accusations from labour rights activists. – November 25, 2021.