ATAIMS (8176): ATA IMS BHD: Addressing challenges faced during the pandemic and Dyson ties

ATAIMS (8176): ATA IMS BHD: Addressing challenges faced during the pandemic and Dyson ties

WE would like to respond to FocusM with regard a report titled “Activist Andy Hall questions HR Minister’s U-turn statement on ATA IMS” which was published on Dec 10, 2021.  

This response aims at providing further clarification to the statement issued by Malaysia’s Human Resources Minister, Datuk Seri M Saravanan that was published on the site on Dec 11, 2021.  

ATA wishes to provide clarifications to various points raised in the reports, which will help readers to have a better perspective on ATA’s continuous and concerted efforts in addressing and improving its labour and social compliance standard and practices, and ensuring a positive business continuity.  

1. Penalties by Human Resources Ministry (MOHR)

    The penalties or summons (“summons”) issued by Jabatan Tenaga Kerja, Johor Bahru, (“JTK” Johor Bahru), an agency under the MOHR , to ATA during the movement control order (MCO) and Enhanced MCO (EMCO) when there were stringent restrictions to movement.

    The JTK summons were issued to ATA under Section 24D (1) and (3) of the Employees’ Minimum Standards of Housing, Accommodation and Amenities Act 1990.

    These summonses were issued by JTK Johor Bahru to ATA because the Company accommodated foreign workers with expired permits at residential homes as the Company was not allowed to place these workers in hostels as per the relevant Certification Of Approval (COA).

    These workers had special arrangements with Malaysia’s Immigration Department to be sent to their home countries; which was delayed due to the closure of Malaysia’s and international borders, with no flights available to send them back to their home countries; resulting from the pandemic.

    The Company has written to the Attorney General Chambers (AGC) regarding this matter, and is waiting for their response.

    The Company strongly reiterates that these penalties or summons by JTK Johor Bahru is not part of the current claims made with regard to the contract between ATA and Dyson.

2. Scarcity of labour

    In regard to labour shortage, this issue is neither limited to ATA nor the manufacturing industry.

    Saravanan has clearly stated in his response to FocusM yesterday that labour shortage has been a perennial problem in Malaysia, which is made worse by the pandemic as many foreign workers had left the country and could not return to work in Malaysia.

    Furthermore, ATA’s workforce are mainly local (Malaysian) workers. As a result, when businesses were ordered to limit or stop operations altogether during the MCO and EMCO, most of ATA’s local workers had chosen to leave the Company in favour of pursuing work in the gig economy.

    After restrictions to movements were lifted, these workers chose to continue working in various gig economy jobs, and others such as at the malls, theatres, restaurants and even delivery and logistics.

    ATA has clearly shared this information with most independent audit firms and relevant Government authorities.

    To mitigate this challenge, the Company has been participating in the National Recalibration Programme since it was initiated in November last year until today. This programme is aimed at regularising undocumented foreigners either by enabling them to return to their home countries or to be employed by eligible employers.

    ATA invites FocusM and all interested stakeholders to view a video on the National Recalibration Programme at this link to get a better understanding of the programme. Please note that the programme has been extended to Dec 31.

3. Contract termination with Dyson  

    Please note that the contract termination between ATA and Dyson was without cause and with notice.

    As per the regulation of Bursa Malaysia (the stock exchange of Malaysia), the Company issued a statement on the matter to the stock exchange; seeking legal counsel on available recourse.

    The Company had not and is not contesting the termination.

    As part of the growth of its business, ATA continues to engage with its potential partners and customers, locally and abroad.

    The Company is diligent in its duty to share updates with Bursa Malaysia and shareholders on matters pertinent to its operations.

As such, we wish to reiterate that the Company remains committed to achieving the industry benchmarks for Environment, Social, and Governance improvement and in compliance with ATA’s Occupational Safety and Health policy.  

ATA is firmly and quickly moving forward towards establishing stringent and added remedial measures to continue promoting the wellbeing of its employees and making sure its employees are kept safe from harm and injury.  

Towards this, ATA requests FocusM to publish our response, enabling its readers and all interested stakeholders to have a balanced view of the issues highlighted in its reporting. – Dec 12, 2021.  

The statement above was issued by ATA IMS Bhd.

https://focusmalaysia.my/ata-ims-addressing-challenges-faced-during-the-pandemic-and-dyson-ties/