KUALA LUMPUR (May 21): ATA IMS Bhd today reiterated its claim that it does not practise any form of forced labour in its operations, after a prominent migrant worker rights specialist said the US authorities would investigate the company regarding the matter.
The electronic manufacturing services provider said that as of today, it has not received any communication from the US Customs and Border Protection (CBP), or any other similar government authority, on the forced labour allegation.
In a bourse filing, the group pledged to cooperate with CBP or other government agencies promptly if any such communication is received.
In relation to foreign workers’ recruitment, the group said it fully adopts international best practices, a key aspect of which is a zero-recruitment cost policy. Its foreign workers are thus not required to pay recruitment and agent fees to any third party during the recruitment process.
The recruitment agents that the group engages are also required to undergo a due diligence evaluation process to ensure their compliance with such practices, said ATA IMS.
The group added that it complies strictly with Malaysian labour laws and regulations relating to recruitment, minimum wages and maximum working and overtime hours, and no child labour policy.
“Compulsory rest days are also adhered to so that employees have sufficient rest and recreation for their overall health and well-being. Training and workshops are also given to employees at regular intervals, and those who have displayed high performance and good discipline have been afforded career advancement opportunities,” it said.
The group also said it provides hostel accommodation for all foreign workers that meet international labour standards adopted and audited regularly by its main multinational customers and global retailers.
“These accommodations surpass the Malaysian government’s guidelines for minimum standards for foreign workers’ accommodation (Guidelines for Minimum Standards for Foreign Workers’ Accommodation 2018), and are complete with well-equipped cafeterias or kitchens, gyms, Wi-Fi access, recreation facilities and sick bays.
“The foreign workers also have unrestricted access to individual lockers for safekeeping of their passports and personal documents, and assistance from human resource personnel or representatives to discuss grievances and/or provide suggestions related to work or hostel matters,” it added.
On top of that, it also successfully gained SEDEX membership and OHSAS 18000 certification which ensure that its social compliance and occupational health and safety practices are in adherence with internationally recognised standards,” the group further said.
Andy Hall, a migrant worker rights specialist, said the CBP had written to him to say that the US authorities would open an investigation to review if there was any forced labour involved in ATA ImS unit’s activities.
The letter, which was responding to a petition from Hall, said: “CBP reviewed the petition and determined the information is sufficient to investigate the merits of this allegation.”
“The length of time needed to review an allegation depends on a variety of factors, some of which are beyond CBP’s control. If CBP finds the information meets the threshold, CBP will issue a Withhold Release Order,” said CBP.
Hall in his petition urged the CBP to investigate ATA IMS, and provided what he claimed was information on alleged forced labour conditions, including unethical recruitment practices and inadequate working and living conditions at ATA Industrial (M) Sdn Bhd, a unit of ATA IMS in Johor.
ATA IMS’ share price recouped some of yesterday’s losses, with a 7.73% or 18 sen increase to RM2.51. Yesterday, the counter fell to a three-month low of RM2.33, plunging 18% or 51 sen on news of the alleged forced labour inspection claim.
