Electronics giant Panasonic is shutting down its refrigeration compressor manufacturing operations in Singapore and will be moving these manufacturing operations to its existing facilities in Malaysia and China.
The shutting down of its compressor manufacturing operations in Singapore will result in the layoff of 700 staff.
The decision to shut down its manufacturing operations in Singapore comes amid the challenging global business outlook and following the firm’s strategic review of its refrigeration compressor business portfolio, Panasonic said.
Got Union Got Bo-pi
To ensure that all affected staff are well-supported during this period, Panasonic said that it is working closely with government agencies, the relevant authorities and the United Workers of Electronics and Electrical Industries (UWEEI) to assist them with job placement.
In a Facebook post, UWEEI said that they will ensure that the retrenchment exercise is carried out in a transparent, fair, and responsible manner, observing the principles outlined in the NTUC Fair Retrenchment Framework as well as the existing Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment to the fullest extent possible.
It also added that its priority is to continue working closely with Panasonic to ensure that affected staff will receive the necessary assistance and support so that they receive fair treatment.
According to UWEEI, Panasonic company is committed to paying the affected staff the retrenchment benefits stipulated in the Collective Agreement, which is higher than industry norms.
By the way hor, usually for unionised companies where the amount of retrenchment benefit is stated in the collective agreement, the norm is one month’s salary for each year of service. Whereas industry norms, the retrenchment benefit is between two weeks to one month’s salary per year of service, depending on the firm’s financial position and industry.
Really leh, got union got bo-pi!
Singapore remains a regional and important hub for the company
In the press statement, Panasonic stressed that Singapore remains a regional and important hub for the company, adding that the company will continue to invest in Singapore to support its growth strategies in the high-value supply chain and continue contributing to the communities in the Asia Pacific and beyond.
With its global headquarters for the refrigeration compressor business and research and development (R&D) activities remaining in Singapore, the company said it will also continue to have more than 1,400 employees across various business segments.
The closure of Panasonic’s refrigeration compressor manufacturing operations is a harsh reality that it is very easy for companies to pack up and go elsewhere if they cannot find the right talent here in Singapore sia.
And when they pack up and go, Singaporeans will also lose their jobs.
Now you know why it is so important for Singapore to remain attractive for investors liao not?
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