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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Originally Posted by devilplate
at that time if u dare to buy A HDN for rental ....I salute you...
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.
Must humptom the developers for making him wait so long. 
