View Full Version : Retrenchment has started!
Microchip firm UTAC Holdings lays off 220 workers
Shift to higher-end manufacturing is UTAC's reason for cuts
Published on Oct 7, 2011
By Kor Kian Beng
A total of 220 factory workers and engineers were retrenched on Thursday from microchip tester UTAC Holdings, which is moving up the technology ladder to produce higher-value products.
These employees of its subsidiary, United Test and Assembly Center (UTAC), a provider of semi-conductor assembly and testing services that had employed 2,486 workers, were given the news in the morning.
Each was given one month's pay for every year of service and $300 for skills training courses, a severance package that their union said was 'fair'.
The workers' average age is 30.
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Fewer than 25 per cent are Singaporeans, about 30 per cent are permanent residents and the rest are foreigners on employment passes, a UTAC spokesman told The Straits Times.
Job interviews at other companies have already been set up for about 100 workers. This shows their skills are in demand among manufacturing companies, said Mr Heng Chee How, executive secretary of their United Workers of Electronic and Electrical Industries (UWEEI) union.
Mr Cyrille Tan, UWEEI's general secretary, said the union and the Employment and Employability Institute are organising a job fair to match the workers to suitable jobs quickly.
Mr Heng, who is also the National Trades Union Congress' (NTUC) deputy secretary-general, said the layoffs reflect the never-ending restructuring in the electronics sector towards higher-end manufacturing.
He also said the labour movement has seen a clear sign of a slowdown in the sector since June this year, with more companies reporting reduced orders and introducing shorter work arrangements for their employees.
'The NTUC is monitoring the situation, and so far, the slowdown has not shown up in other sectors,' he added.
But he cautioned that Singapore needed to 'remain vigilant because the economic climate is volatile and can change easily'.
He said: 'Unions are working closely with companies on possible measures to cut cost and manage excess manpower should the need arise.'
Thursday's layoffs lifted the retrenchment figures in the unionised sector to above that of last year's, said Mr Heng.
Last year, it was 1,961, of which about 80 per cent came from electronics. But this year, with the 220 from UTAC, the figure is 2,020.
UTAC said on Thursday the cut in its local workforce is part of a $140 million restructuring effort over the next five years to shift to higher value-added manufacturing.
Said Mr Lee Joon Chung, UTAC Holdings' president and chief executive officer: 'While the group's business fundamentals remain strong across the region, operating costs here have risen faster than anywhere else.
'As a result of these structural changes, our Singapore operations need to move up the value chain rapidly to optimise productivity.'
The company is moving its lower-end operations to China and Thailand.
In Singapore, it is stepping up its advanced manufacturing activities as well as expanding its research and development (R&D) headquarters.
It will be raising its R&D manpower from 143 now to about 200 in the next five years.
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devilplate
07-10-11, 10:51
er....from wat i gather....its more like restructuring.....moving from lower end maufacturing to higher end(less labour intensive)
but definitely orders r shrinking la
isnt this wat 'we' want?
less foreign workers? 'we' only want real foreign talents? no?
"Fewer than 25 per cent are Singaporeans, about 30 per cent are permanent residents and the rest are foreigners on employment passes, a UTAC spokesman told The Straits Times."
thomastansb
07-10-11, 11:10
Next to come is 50% off HDB flats. If all restrictions removed (high chance if prices drop 50%), maybe can buy one to hold for rental.
er....from wat i gather....its more like restructuring.....moving from lower end maufacturing to higher end(less labour intensive)
but definitely orders r shrinking la
isnt this wat 'we' want?
less foreign workers? 'we' only want real foreign talents? no?
"Fewer than 25 per cent are Singaporeans, about 30 per cent are permanent residents and the rest are foreigners on employment passes, a UTAC spokesman told The Straits Times."
Next to come is 50% off HDB flats. If all restrictions removed (high chance if prices drop 50%), maybe can buy one to hold for rental.
Err how is it politically palatable that all restrictions be removed? The HDB resale & BTO are still hot, and unlikely to cool in 2012.
er....from wat i gather....its more like restructuring.....moving from lower end maufacturing to higher end(less labour intensive)
but definitely orders r shrinking la
isnt this wat 'we' want?
less foreign workers? 'we' only want real foreign talents? no?
"Fewer than 25 per cent are Singaporeans, about 30 per cent are permanent residents and the rest are foreigners on employment passes, a UTAC spokesman told The Straits Times."
Re-packaging retrenchment. U want to hear right sizing? Down sizing? Or other nicer phrases? Job losses means retrenchment.
Next to come is 50% off HDB flats. If all restrictions removed (high chance if prices drop 50%), maybe can buy one to hold for rental.
if the HDB flat drops by 50%...I told you this will be worse than PAP lost 8 seats to opposition!!! This will not be only recession but also mean singapore is in Deep and serious trouble...that is how HDB can drop by 50%...:doh: at that time if u dare to buy A HDN for rental ....I salute you...:D
This is not really the type of retrenchment that indicates troubles in the property market. Semi-con is famous for this type of right-sizing ...aka Seagate...hire, than re-hire the same people.
Has to be white-collar types before cracks appear.
proud owner
07-10-11, 15:35
This is not really the type of retrenchment that indicates troubles in the property market. Semi-con is famous for this type of right-sizing ...aka Seagate...hire, than re-hire the same people.
Has to be white-collar types before cracks appear.
there have been laying off in the financial sector ... for the past few mths ..
just hush hush and not reported in the papers...
XXX globally closing their proprietary trading desk ..
etc etc ...
among bankers .. most feel next 2 yrs will be tough ...
if the 'highly paid' feels this way .... do you think it will in some way affect the property market ?
devilplate
07-10-11, 15:49
High quantum ppty most affected...:scared-3:
When economy last 2yrs r booming, ccr big ticket ppty oredi lacklustre.....
if the 'highly paid' feels this way .... do you think it will in some way affect the property market ?
MM apartments likely to be hit badly I think.
Some Miw mention retrenchment is good ...maybe planned ?:D
MM apartments likely to be hit badly I think.
Shd b larger units will get hit more. HDB n MMs should be relatively recession proof.
Majority of E-Passes holders may be renting HDB flat. This may not be good news for the rental market.
Shd b larger units will get hit more. HDB n MMs should be relatively recession proof.
HDB rentals may come off alittle but not many buy and sell HDB just for this. Some won't sell coz they can't ever buy HDB back.
I heard HSBC, Barclays were retrenching but not in a big way.
With the Euro issues, lets see if SocGen and BNP does anything. UBS?
Majority of E-Passes holders may be renting HDB flat. This may not be good news for the rental market.
thomastansb
07-10-11, 16:55
I never say 2012. When it comes, we will know..
Err how is it politically palatable that all restrictions be removed? The HDB resale & BTO are still hot, and unlikely to cool in 2012.
Condo Kaiser
07-10-11, 16:56
UBS confirm cutting... They will slowly reduce their IB and go back to the bread and butter wealth management which they are still strong in.
Majority of E-Passes holders may be renting HDB flat. This may not be good news for the rental market.
Holding costs are quite low for HDB and MMs. No issue to wait out 1 to 2 months for tenants. Larger pte condo units will make the owners bleed and panick.
thomastansb
07-10-11, 16:58
In 2009 Q1, many people salute those who bought.
Anyway, it is how far you want to see things. 50% drop is possible. Last year + this year + next year > 70,000 HDB flat. That is > 10 years of supply. The scary part is no one knows how many 2nd timers bought the flat. 10,000 (14%) and HDB is finished. There will be 10,000 firesales because those 10,000 need to clear within 6 months else, HDB will repossess. I am waiting for this day to come. Offer super low knowing they have no choice :) For private properties, the owner can just rent out and don't sell. For HDB, lan lan 6 months need to sell. If lesser foreigners + many 2nd timers selling + economic slowdown, then why 50% drop is not possible? Oh ya, Singaporeans ask for it. They want lesser foreigners and cheaper HDB. They will have their wish soon. We just move into the market to fulfill their wishes.
if the HDB flat drops by 50%...I told you this will be worse than PAP lost 8 seats to opposition!!! This will not be only recession but also mean singapore is in Deep and serious trouble...that is how HDB can drop by 50%...:doh: at that time if u dare to buy A HDN for rental ....I salute you...:D
How tech firms?
I was told Cisco and Microsoft cut some back room/ops people a few months ago. Anyone can confirm how many and their levels?
devilplate
07-10-11, 17:36
In 2009 Q1, many people salute those who bought.
Anyway, it is how far you want to see things. 50% drop is possible. Last year + this year + next year > 70,000 HDB flat. That is > 10 years of supply. The scary part is no one knows how many 2nd timers bought the flat. 10,000 (14%) and HDB is finished. There will be 10,000 firesales because those 10,000 need to clear within 6 months else, HDB will repossess. I am waiting for this day to come. Offer super low knowing they have no choice :) For private properties, the owner can just rent out and don't sell. For HDB, lan lan 6 months need to sell. If lesser foreigners + many 2nd timers selling + economic slowdown, then why 50% drop is not possible? Oh ya, Singaporeans ask for it. They want lesser foreigners and cheaper HDB. They will have their wish soon. We just move into the market to fulfill their wishes.
Hdb nvr ever drop 50% before.....i tink historically at most 30%
If hdb drop 50%, pte ppty cfm drop more....perhaps 60-70%:scared-1: :scared-1: :scared-1:
Thomastansb is a bit exaggerating , but the big drop in HDB resale price is entirely possible. 700k Bishan clementi drop back to 500k, 500k sengkang jurong west drop back to 400k. If you observe the income statistics , over the last 10 yrs the mid to low income bracket did not change at all. The majority of HDB owners did not get richer.
Thomastansb is a bit exaggerating , but the big drop in HDB resale price is entirely possible. 700k Bishan clementi drop back to 500k, 500k sengkang jurong west drop back to 400k. If you observe the income statistics , over the last 10 yrs the mid to low income bracket did not change at all. The majority of HDB owners did not get richer.
Majority of HDB owners got richer.
retrenching factory workers aint going to crash the property market...
its the highly paid bankers....
but that already happened... but most couples dual income, so all can tahan unless bad luck both retrenched same time....
Bad news for developers n investors. Sentiment has been dented. New sales, resales n subsales will drop.
Bad news for developers n investors. Sentiment has been dented. New sales, resales n subsales will drop.
Good news for investors that have been waiting on the sideline.
One of my kaki is one of them. Missed the 2008/9 boat. He promised himself cannot miss this time otherwise "long piat" :banghead: Must humptom the developers for making him wait so long.
Who knows, maybe developers come up with better strategy to beat the odds - more mini MM this time??:D
Shd b larger units will get hit more. HDB n MMs should be relatively recession proof.
larger unit can lower rental, and given a choice, nobody would like to live in MM. No replacement for displacement,
my 3 cents
There is a minimum large units can be rented out, and that should be the monthly instalment + maintenance + tax. The larger the unit, the higher the minimum rental, else the owner will be subsidising the tenants.
For a typical $500k MM, which is 40% paid up, at 1% interest, the worst case scenario/ lowest rental is around $1.4k per month. Easily affordable for a couple who still want a condo lifestyle and privacy if forced to downgrade due to pay cut.
Anyway MM is not proven in recession yet, above is just a projection.
Good news for investors that have been waiting on the sideline.
One of my kaki is one of them. Missed the 2008/9 boat. He promised himself cannot miss this time otherwise "long piat" :banghead: Must humptom the developers for making him wait so long.
Who knows, maybe developers come up with better strategy to beat the odds - more mini MM this time??:D
I'm looking at generally stagnant psf by early next year:
1. Ulu located projects could see greater discounts from developers, as investors pull back from poorly located projects. Not too sure if people want to board these boats that cruise to nowhere.
2. With heavier traffic and rising transportation cost, projects that are near MRT will still command a premium as there are real demand from self-stay buyers and investors.
I assess from my friends, a lot of them are waiting to buy rather than to sell. Friends in the govt services are all waiting to buy. This group of friends is relatively risk adverse...haha
I assess from my friends, a lot of them are waiting to buy rather than to sell. Friends in the govt services are all waiting to buy. This group of friends is relatively risk adverse...haha
All waiting for end of year bonus + performance bonus in March... This year's March-May surge in buying was most likely due to government or GLC staffs' bonuses. Next year is likely to be a muted response.
I assess from my friends, a lot of them are waiting to buy rather than to sell. Friends in the govt services are all waiting to buy. This group of friends is relatively risk adverse...haha
Just after fannie and freddie collapsed but before Lehman filed for chapter 11, I had a friend who upgraded to a condo. Husband and wife are teachers.
kingkong1984
08-10-11, 08:57
Haha, it's always there. Look at released key statistics from official sources.
I assess from my friends, a lot of them are waiting to buy rather than to sell. Friends in the govt services are all waiting to buy. This group of friends is relatively risk adverse...haha
errr. how come now waiting to buy? wouldnt they had bought in 2009?
shauntanzs
08-10-11, 17:05
There is a minimum large units can be rented out, and that should be the monthly instalment + maintenance + tax. The larger the unit, the higher the minimum rental, else the owner will be subsidising the tenants.
For a typical $500k MM, which is 40% paid up, at 1% interest, the worst case scenario/ lowest rental is around $1.4k per month. Easily affordable for a couple who still want a condo lifestyle and privacy if forced to downgrade due to pay cut.
Anyway MM is not proven in recession yet, above is just a projection.
Looks like many is waiting for MM to die. I think most important still location...
If MM in good location plus cheap, I still think there will be tenant...
devilplate
08-10-11, 17:23
Looks like many is waiting for MM to die. I think most important still location...
If MM in good location plus cheap, I still think there will be tenant...
Bcoz mm psf rising while their bigger units psf hardly move mah....
We have to be like London for MM to strive. Unfortunately, we have the successful HDB flats.
Bcoz mm psf rising while their bigger units psf hardly move mah....
errr. how come now waiting to buy? wouldnt they had bought in 2009?
mental blocked
kiase
In 2009 Q1, many people salute those who bought.
Anyway, it is how far you want to see things. 50% drop is possible. Last year + this year + next year > 70,000 HDB flat. That is > 10 years of supply. The scary part is no one knows how many 2nd timers bought the flat. 10,000 (14%) and HDB is finished. There will be 10,000 firesales because those 10,000 need to clear within 6 months else, HDB will repossess. I am waiting for this day to come. Offer super low knowing they have no choice :) For private properties, the owner can just rent out and don't sell. For HDB, lan lan 6 months need to sell. If lesser foreigners + many 2nd timers selling + economic slowdown, then why 50% drop is not possible? Oh ya, Singaporeans ask for it. They want lesser foreigners and cheaper HDB. They will have their wish soon. We just move into the market to fulfill their wishes.
IN 2009 Q1 , u mean HDB or private for those u salute those who bought?
But for now I salute u for having this view which to me is contradicting and impossible completely for HDB flat to drop 50% (imagine AMK our PM ward HDB 5 room resale flat becomes $300K :D )...Hold your money and wish for it ! Happy waiting:D
devilplate
08-10-11, 18:57
We have to be like London for MM to strive. Unfortunately, we have the successful HDB flats.
No la...its bcoz big units quantum too high and common folks cannot afford mah....hdb can only buy one....
Big units px drop by 30-50%, developer will not build mm
Bcoz mm psf rising while their bigger units psf hardly move mah....
More like most people can't fathom themselves living in one.
devilplate
08-10-11, 23:51
More like most people can't fathom themselves living in one.
Buy to let and buy to stay got big diff
Buy to let and buy to stay got big diff
Some are guided by their own benchmark on what's livable and what's not.
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