Monday, March 11, 2019


MTUC Penang has taken sight of notices from a couple of MNCs involved in the electronic manufacturing sector announcing manpower downsizing, lower wage increases, lower bonuses and periodic plant shut-downs. Besides the said written annoucements that we have seen we have also received reports that other companies are also planning to implement such measures.

The said notices, that we have read, attributes a weak global demand, weaker growth and an uncertain global outlook as the underlying causes for the course of actions that are undertaken by the said employers. The notices that we have seen, and the informations that we are receving, seems to indicate that the electronic sector employers are initiating down sizing and shut downs from end March 2019 onwards. It is our beleive that we have only received a tiny bit of information and are of the view that the uncertainity of the global market would, in all probabality, impact upon most of the major players in the sector. It is, therefore, our view that the Penang state government ought to call for a meeting with the electronic manufacters in Penang so that the depth of the problem can be appreciated. Such a meeting would also give the state an insight as to the manufacturers plan of actions in the face of challenges facing the sector. We would also take the liberty to propose that the said meeting be inclusive of all stake-holders, including the unions.

On the issue of plant shut-downs MTUC Penang demands that full wages be paid during such periods as any loss of wages would, inevitably, put tremendous pressure on the economical needs of the workers especially so with the prevailling escalating cost of living factors.

Secretary MTUC Penang Division
016 4184520

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