More bad news in the electronics industry in Malaysia.
German firm Qimonda, which has a plant in Malacca, has filed for bankruptcy in Munich – thanks to a global glut in memory chips.
From the Qimonda website:
Region: Malacca / Senai
No. of employees: approx. 1,100
Areas of activity: Research and Development, Design and Testing, Production, Purchasing, Logistics, Planning and Controlling, Information Technology and Service, Support and Staff Functions
Meanwhile workers at Intel are worried they might end up with no proper compensation following the closure of the firm’s two plants in Penang, as the excerpt from this NST report suggests. No severance package?
While Intel has assured that it intends to offer some 1,000 affected Malaysian employees comparable jobs within its existing facilities in Penang and Kulim, a veil of insecurity and uncertainty is now shrouding those affected.
They are mindful of the fact that Intel’s existing facilities are running at a far lower production capacity, and wonder if enough work can be made available for everyone.
The prospects of not being able to find an internal position to match their skill sets once their original jobs go, is also nail-biting.
Compounding all these worries is the fact that those who choose to part ways with Intel will likely end up with no severance package.
I hope Intel will pay properly compensate any workers who do not want – or are unable due to family and housing commitments – to be deployed further away to Kulim.
The Penang state government must take a strong stand with firms retrenching workers. I am not saying this is the case with Intel, but often firms use the offer of “re-depl0yment” to a location farther – knowing that many workers will be unable or unwilling to take up their “generous offer” – away as a ploy to avoid paying proper retrenchment compensation to workers.