December 28, 2008

Slowdown hits workers

Some 1,429 workers from 17 factories in Kedah will be temporarily laid off in the wake of the economic slowdown.
Their employers had notified the state labour department of the move, which will take place within the next two months.
Human Resources Minister Datuk Dr S. Subramaniam said the factories would also reduce the number of working days.
He said five other factories had also given notice of the impending retrenchment of 102 workers in the same period.
“Although the numbers are not serious now, we are unable to predict the demand for the workforce after this period.
“We hope the workers who will be temporarily laid off will not be subsequently retrenched,” he said after opening a “Work Ethics for Indian Youths” seminar here.
The event was organised by his ministry and various Indian associations in Kedah.
Dr Subramaniam said the labour department had opened operations centres nationwide to register retrenched workers to assist them in finding alternative employment.
At a later function in Butterworth, Dr Subramaniam said employers should tap the seven million unemployed Malaysians to reduce their dependency on foreign labour.
He said most of them were housewives, single mothers and fresh graduates.
“Many employers are now reluctant to hire them as they are unsure of the benefits they should pay in case their services are no longer required,” he said at the launch of a tele-working workshop at Dewan Haji Ahmad Badawi.
The ministry, he said, was studying whether part-time workers should be paid Socso, EPF and retrenchment benefits and be given annual leave.
He said the Cabinet had approved RM100mil to help re-train retrenched workers and RM70mil to provide skills training for single mothers and unemployed graduates to enable them to find jobs.
He said some 10,000 unemployed graduates and 20,000 retrenched workers were expected to benefit from the funds.
Dr Subramaniam said up to Dec 25, some 29,000 workers had been retrenched, mostly from the electrical and electronics sector.

TS

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