ATA, one of Malaysia’s top electronic manufacturing service providers, rode Dyson’s success in high-end vacuum cleaners and air purifiers, supplying parts for a company that came to account for 80% of its revenue.

Ten current and former employees, and a former ATA executive, say the growth came at an unseen cost — its mostly migrant workforce worked up to 15 hours a day, were often asked to skip rest days to keep up with demand, and were coached to hide true working and living conditions from labour inspectors and Dyson.

In interviews over the last two months, the employees also say ATA, which analysts say is Dyson’s biggest global contract manufacturer, hired thousands of foreigners without work permits.

After questions from Reuters on Nov 18, Dyson last month said it would pull its business from ATA in six months, citing a recent independent audit on conditions for workers and allegations by an unidentified whistleblower.

Malaysia on Wednesday said it would charge ATA over complaints it had received through the labour department.

With Dyson’s departure, six workers and shopkeepers interviewed in the Johor Bahru industrial area said they feared they might lose their livelihoods.

“There is no guarantee of a job here any more,” said one off-duty ATA worker, wearing his royal-blue factory work shirt on a recent Sunday.

Like others, he asked not to be identified for fear of reprisal.

ATA officially employs around 8,000 workers, although four ATA workers and the former executive estimated its workforce had been as high as 17,000 until recently, including those without permits.

Most of 17,000 were from Bangladesh and Nepal, according to the workers and executive.

ATA posted record revenue of US$991.74 million (RM4.2 billion) for the fiscal year that ended in March.

Dyson, owned by British billionaire James Dyson, accounted for nearly US$800 million (RM3.4 billion) of that.

Analysts say the increased scrutiny of Malaysia could increase production costs and deter investors.

The US has banned six Malaysian firms in the last two years over accusations of forced labour.

Malaysia, which makes everything from iPhone components to semiconductors, is reliant on electrical and electronics manufacturing in particular for exports and economic growth.

Between January and October 2021, such products accounted for 36% of total exports.

Foreigners make up about 10% — 1.48 million — of Malaysia’s work force, according to government data, though that percentage is higher in the manufacturing sector.

The government and labour groups estimate millions more undocumented migrants.

ATA employees told Reuters that supervisors coached factory staff on what to tell auditors.

In July, an ATA supervisor instructed workers in a WhatsApp group to tell auditors they did not work on Sundays and worked no more than three hours of overtime per day.

According to workers and payslips seen by Reuters, workers regularly worked Sundays and up to six hours of overtime.

“We need your cooperation… Please brief all the employees … to avoid issues during the audit,” read the message, dated July 2 and seen by Reuters.

Employees also said the plant had been cleaned and safety equipment distributed ahead of audits, and that workers without permits were asked to stay away.

Nepalese national Dhan Kumar Limbu, 32, said people working with independent labour rights activist Andy Hall contacted him in April as part of Hall’s investigation into ATA.

Limbu said he shared details about working and living conditions with them. Hall confirmed Limbu’s account.

Limbu said that in June, ATA officials took him to a police station, where he was questioned about sharing information with activists, then beaten by police.

He fled Malaysia and is now back in Nepal.

Limbu told Reuters he told Dyson’s lawyers about the ATA working conditions in an interview on Oct 1.

Dyson did not identify the whistleblower by name but said in a statement to Reuters last month that it commissioned an international law firm to undertake a full investigation and provided the whistle-blower with support.

ATA also hired a law firm to review Limbu’s claims and said in a statement last week that preliminary findings indicate “the allegations may be unjustified”.

Police have said they are investigating whether officers beat Limbu.

Employees said ATA started to make some changes after the accusations came to light in May, when it first publicly denied the allegations.

Limbu and other employees Reuters interviewed said Dyson’s should have stayed to ensure working and living conditions improved for migrant workers.

“My intention to share information was to improve conditions for the workers and get rest days.

“But now with Dyson’s decision, people will lose jobs,” Limbu said.