SINGAPORE, Sept 24 — Electronics giant Panasonic is retrenching 700 workers at its Singapore operations because it is stopping the manufacturing of refrigeration compressors here by the end of September 2022.
In a press release yesterday (September 23), Panasonic said that the firm is working closely with the relevant authorities, government agencies and United Workers of Electronics and Electrical Industries (UWEEI) to ensure that all affected employees are “well-supported”.
The firm is also assisting them with job placements.
After the retrenchment exercise, Panasonic will still employ more than 1,400 staff members in Singapore, which is its Asia-Pacific headquarters.
The company said that the decision was made “given the challenging global business outlook and following Panasonic’s long-term business strategic review of the refrigeration compressor business portfolio”.
Panasonic will consolidate the compressor manufacturing operations at its existing facilities in Malacca in Malaysia and Wuxi in China. The firm’s casting operation will be based at its Malacca factory.
“Panasonic Appliances Refrigeration Devices Singapore has established its reputation as one of the major refrigeration compressor manufacturers globally for over the past 49 years of operation in Singapore, manufacturing energy-efficient inverter compressors for fridges, water coolers and vending machines,” its media statement said.
It added that its research and development will remain operating in Singapore, and the country will continue to serve as the global headquarters of the refrigeration compressor business.
Following Panasonic’s announcement, UWEEI said in a statement that it understands “that the decision did not come lightly” for Panasonic Appliances Refrigeration Devices Singapore and that “it is a difficult time for affected employees”.
It added that its immediate priority is to continue working closely with the firm to ensure that affected employees receive the necessary assistance and support so that they receive fair treatment.
“The company is committed to paying employees the retrenchment benefits stipulated in the Collective Agreement, which is higher than industry norms,” the union said.
It added that it has been working closely with NTUC’s Employment and Employability Institute (e2i) as well as the Economic Development Board to provide job placement assistance to affected employees.
The union is also working with other unionised companies that may have vacancies in the same or adjacent sectors.
“Together with e2i, UWEEI is arranging for affected staff to attend virtual or physical job fairs and employability workshops. For employees who need to undergo training to upskill or reskill, e2i will be facilitating the training and match them to suitable companies,” the union said. ― TODAY
