The reality of the global financial crisis is starting to be felt in Malaysia. It is no longer a distant problem. It is no longer something that only Americans have to worry about. The coming financial tsunami is no longer just another boring news item suitable only for the business section as we spend our time talking about politics.
Computer maker Dell is offering voluntary separation scheme (VSS) to its 5,000 Malaysian staff in Penang and Cyberjaya as part of its global restructuring exercise. VSS simply means the company will pay off workers to leave the company, preferably the less productive ones. It is less painful than retrenchments. Penang will be hit the hardest where there is a large concentration of multi national companies, particularly the electronics sector.
The reality is that demand has gone down and that means production must also go down. When that happens, companies do not need so many workers. Companies can reduce production hours or impose pay cuts but that would simply means buying time. Eventually, staff would have to be let go to reduce operating cost. Employers all over are looking at ways to cut expenses to keep their companies to stay afloat and save jobs, which is difficult to explain to staff.
Staff, especially unions, which demand pay increases as companies struggle to meet sales targets are simply ignoring the realities of the day. More bad news will come. It's time our politicians wake up and focus their attention on economics.
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9 comments:
Friend in Dell told me it was a good VSS with generaous compensation package for redundant staff. So it is not all that bad at least the employees got paid.
At least they are giving VSS and not packing their bags overnight. A pity though, they just started operation at their new building in Cyberjaya
And they won't be the last. Good breaking news.
better than nothing
SECURITY IN OWN ABILITY
The latest trend in financial security
Depends largely now on one's own ability
Not to hang on too dearly to one's paid job
But to make the necessary shift to be a nob
(C) Samuel Goh Kim Eng - 190309
http://MotivationInMotion.blogspot.com
Thur. 19th Mar. 2009.
So the global crunch has finally hit our shores, a far cry from the initial optimistic views painted by our present Govt about the country's resilience.
I have doubts the so called stimulus or rescue package will really be felt by the rakyat. It is my personal opinion that the stimulus package is another sweetener with no substance because our politicians are busy fighting for survival rather than ensuring the stimulus plans are properly executed.
We, the rakyats, are no dumbos. We know what's happening around us far better than the politicians. So with the crunch on, let's see some positive and effective moves MR POLITICIANS! Otherwise you should pack your bags and leave. We rather place our destiny and future on the hands of PKR. Give them the opportunity to make positive changes. BN has been tried and tested for far too long. If they are still not efficient after holding powers for so long, they really don't deserve to serve us what more manage the economy.
LGE now your turn let see your CAT...
Good news indeed. I think the corporate malaysian could take this opportunity to attract the good talents out there.
And our country will have a very fundamental issue to solve if we keep on relying on MNC for employment.
Tun.M has his point.
With the fall in global demand, more factories will be shut. Most of the jobs lost will be in manufacturing.
These jobs will not be coming back anytime soon, even when the demand comes back. The whole industrial scene will be changed.
What is the govt strategy in re-structuring the economic development of the country. The manufacturing for export will be severely weakened and will not be able to support the number of jobs lke before. How will new good paying jobs be created. Or should we go back to village life and plant vegetables.
I think these are questions to look at. What can we hope for use and our children?
Answers need to be forthcoming.
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