Dyson faces claims from former workers at Malaysian supplier

KUALA LUMPUR • Ten former workers from Dyson's biggest parts supplier, Malaysian company ATA IMS, are claiming compensation from the home appliance maker over poor working and living conditions at ATA factories, says a law firm representing them.

The former 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 on Friday.

A Dyson spokesman 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 last November that 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 whistle blower. Dyson has not disclosed the findings of its audit.

Leigh Day said it 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. 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," the law firm said.

The letter was sent to Dyson on Dec 10, Mr Oliver Holland, a partner at Leigh Day, told Reuters. He 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 and Dec 5 that ATA's mostly migrant workforce put in overtime exceeding Malaysia's legal limit of 104 hours per month, and also worked on Sundays.

Citing 11 employees, Reuters also reported on Dec 5 that ATA had coached staff ahead of labour inspections to hide their true working and living conditions. The company also employed foreigners without permits.

ATA acknowledged publicly on Dec 7 some violations, made some improvements, and said it now complied 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 ended its contract with ATA after the supplier failed to act swiftly on a recent audit. ATA was audited six times between 2019 and 2021, it said.

REUTERS