Body armour maker DHB Industries Inc on Monday dismissed allegations that bullet-proof vests worn by New York City police officers were faulty and did not adequately protect them from armed criminals.

The company issued a statement in response to claims made by New York City Councilman Eric Gioia during a press conference on Sunday in which he called on the police department to cancel its contract with the firm.

But DHB said the claims were fuelled by union propaganda and false information from an employee who has created "unfounded and unfavourable stories that co-workers indicated are intellectually dishonest and purposely harmful to the harmony of Plant Operations and Point Blank employees".

It added: "He (the employee) continues to defame the manufacturing, testing and inspection criteria of Point Blank Body Armour. Only recently have we discovered that this striking employee concealed a long and lengthy criminal record. He has been placed on administrative leave pending further investigation."