I REFER to your business report “2,000 laid off in Penang from January” (NST, Sept 29).
The Malaysian Trades Union Congress is up in arms over the waves of retrenchment, with Penang laying off 2,000 workers in the manufacturing sector. It has caused fear in the manufacturing, and oil and gas sectors.
The latest case involves TS Solartech Sdn Bhd, a subsidiary of Tek Seng Holdings Bhd, which reportedly gave 241 employees a 24-hour notice, which the national labour union sees as unfair and a breach of labour law.
Recently, oil and gas giant Petronas laid off 1,000 employees, mostly contract workers, because of the falling price of oil, which was then hovering around US$30 (RM123) per barrel. The price has climbed to nearly US$50, providing some relief to the conglomerate.
Even though Petronas has received approval for a liquefied natural gas plant in Ottawa, the Canadian government has imposed 190 conditions, which need to be studied thoroughly.
Petronas is also toying with the idea of a second wave of restructuring, with a focus on poor performers, and is reshuffling its senior management to remain sustainable in a tough economic environment.
Many companies are facing financial difficulties and embarking on cost-saving measures. They are using the excuse of staff redundancy to lay off surplus workers and offering them retrenchment benefits.
American hard disk maker Seagate Technology Plc and computer data storage firm Western Digital Corp (WD) will relocate the bulk of their operations to Thailand.
Seagate’s facility in Penang is said to have more than 3,000 staff members, while WD plans to lay off 400 local and 800 foreign workers at its Penang manufacturing site.
Job displacement entails a sequence of stressful experiences, from loss of employment notification, anticipation of dismissal, unemployment, (in most cases) job search and retraining to eventual re-employment.
Unemployment is associated with economic pressure, stemming from reduced income, loss of health and pension benefits, and interruption in asset accrual.
Job displacement can also lead to depression.
It is good to see that the Penang government has put in place an outplacement programme to assist those affected.
Retrenched employees must use their compensation money prudently or seek professional financial planners to help them invest in these challenging times.
C. SATHASIVAM SITHERAVELLU,
Seremban, Negri Sembilan