Singapore – Panasonic is laying off 700 employees in Singapore because it will cease producing refrigeration compressors by September 2022.
According to Panasonic’s news statement released on September 23, in order to guarantee that all impacted workers are “well-supported”, they have been collaborating with the relevant authorities, government agencies and United Workers of Electronics and Electrical Industries (UWEEI).
The company is also aiding them in finding jobs.
Panasonic will retain around 1,400 employees in Singapore, where it has its Asia-Pacific headquarters.
The firm stated that the decision was taken “in light of the difficult global economic environment and in light of Panasonic’s long-term strategic assessment of its refrigeration compressor business portfolio.”
Panasonic will concentrate its compressor production activities at its current Malacca and Wuxi plants in Malaysia and China, respectively. The firm’s casting business will be headquartered in Malacca.
The company stated in a media statement that Panasonic Appliances Refrigeration Devices Singapore has built a reputation as one of the world’s leading refrigeration compressor manufacturers over the course of 49 years in Singapore by manufacturing energy-efficient inverter compressors for refrigerators, water coolers, and vending machines.
It also stated that research and development would continue to be based in Singapore, and the nation will retain its worldwide headquarters for the refrigeration compressor industry.
After the announcement made by Panasonic, UWEEI said that it recognizes “that the decision was not made lightly” for Panasonic Appliances Refrigeration Devices Singapore and that “it is a trying moment for impacted workers.”
It added that its immediate goal is to maintain close collaboration with the company to ensure that impacted workers get the required help and support to guarantee equitable treatment.
The union said that the business is committed to providing workers the retrenchment benefits specified in the Collective Agreement, which are greater than industry standards.
It noted that it has been collaborating closely with NTUC’s Employment and Employability Institute (e2i) and the Economic Development Board to help impacted workers with job placement.
Additionally, the union is coordinating with other unionized businesses that may have openings in the same or neighboring industries. “In collaboration with e2i, UWEEI is organizing virtual and real job fairs and employability seminars for impacted employees. e2i will facilitate training and connect workers with appropriate employers for those who need upskilling or reskilling,” the union said.