500 workers retrenched from hard-drive firm HGST, union to help

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#1
welcome to 2014

SINGAPORE - In the first major retrenchment in Singapore in recent years, HGST, the enterprise hard drive subsidiary of Western Digital, yesterday axed 530 employees - almost a quarter of its Singapore staff. This is believed to be the company's biggest layoff exercise in Singapore in the past 20 years.


Get the full story from The Business Times.

In a Facebook post, Acting Manpower Minister Tan Chuan-Jin said that even with "a tight labour market and an economy that is doing reasonably well, we will continue to see some amount of redundancy as our economy restructures.

"I wonder how many of us noticed the news about HGST's retrenchment exercise. It is one of the larger retrenchments this year. Even with a tight labour market and an economy that is doing reasonably well, we will continue to see some amount of redundancy as our economy restructures.

He added that some amount of redundancy is an inevitable reality and that Singapore will likely see more of this in the coming years.

"The key thing is to make sure that there is adequate help available to help displaced workers re-enter suitable jobs. And for jobs to be available in the first place.

"Importantly, the unions often proactively work with the management to help those affected. I am glad that HGST Singapore's management and the United Workers of Electronics & Electrical Industries (UWEEI) have been doing this. They are actively working with e2i to provide assistance to the workers affected by the company's retrenchment. Union has also helped secure other settlements and benefits.

"WDA has stepped up employment facilitation efforts as the economy restructures. This includes working closely with the Community Development Councils, grassroots and self-help groups to help unemployed and vulnerable job seekers find jobs. WDA will also work with Family Service Centres and other community counselling providers to help job seekers who require emotional support, and ramp up its outreach and assistance capacity through the unions, advertisements and activities carried out in locations close to the community.

"Retrenchments will happen whether it be festive season or not. Even when the economy is healthy. Unemployment will occur even if the economy is healthy and unemployment low. We must ensure that the systems and processes are in place to help those affected. Take care!"

HGST has released a statement saying that the move was not "revenue-driven", but a response to "new market realities occurring in the storage industry". "It is a market-driven action that will benefit factory efficiencies as the mix of product deliverables changes to meet market needs," it said.

"HGST will be repositioning its Singapore manufacturing facility (in Kaki Bukit) from a mass volume manufacturing site to a pilot production, engineering and shared service centre," the company added.

In response to the news, Heng Chee How, executive secretary of the United Workers of Electronics & Electrical Industries (UWEEI), said that the union was saddened by the news but "we understand that the company faces keen challenges to maintain cost competitiveness".

He added that HGST "has committed to UWEEI to ensure fair compensation and treatment for the affected employees".

According to HGST's website, the multi-million dollar high-tech manufacturing plant at Kaki Bukit was home to more than 2,000 employees before the retrenchment exercise.

The facility produces high capacity and high performance server hard disk drives, and head stacks with MR technology. HGST Singapore is the Global Centre for the company's operations - where the company's key regional business functions are consolidated into one central location in Singapore.

Apart from being the Asia-Pacific regional headquarters, the site also houses the multi-regional sales centre and financial centre, server hard disk drive manufacturing centre, intellectual property and technology centre.
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#2
This just reminds me that HDD producers are moving production out of Singapore. Just look at Cheung Woh who had recently moved to Malaysia.

It just tells me that Singapore's current labour "climate" and cost is unable to support such production managers and managers of such manufacturing are likely to relearn new skills in order to stay relevant in Singapore. Wonder which companies still keep their HDD production line in Singapore?
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#3
HDD will be replaced by SSD....as cost per SSD GB goes lower as technology progresses...
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#4
遭裁退的HGST员工受访时都对裁员福利表示满意。中国籍技工郁兆华(33岁)在HGST工作了九年三个月,已萌生回乡的念头。由于上月就知道公司将裁员,他已先在老家无锡找到工作。

育有三岁儿子的郁兆华难掩欣喜之情:“这可是一笔意外的收获!”Dodgy
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#5
Sounds like a windfall fortune for them.
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#6
Don't laugh.

We now know that newspaper sensationalised just to gain readership.

For everyone that seems happy, there will be at least another one that need help...

Don't believe me? wait for your turn to come...

+++++++
[EDIT] Choy Choy Choy... New Year mah...
Happy new year and 天天快乐。
Big Grin
感恩 26 April 2019 Straco AGM ppt  https://valuebuddies.com/thread-2915-pos...#pid152450
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#7
With his experience, he may have work for Seagate Wuxi.

(29-12-2013, 11:43 AM)violinist Wrote: 遭裁退的HGST员工受访时都对裁员福利表示满意。中国籍技工郁兆华(33岁)在HGST工作了九年三个月,已萌生回乡的念头。由于上月就知道公司将裁员,他已先在老家无锡找到工作。

育有三岁儿子的郁兆华难掩欣喜之情:“这可是一笔意外的收获!”Dodgy
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#8
Most manufacturing will have to move out to cheaper locations. We will be just like another Japan.
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#9
(29-12-2013, 01:34 PM)Stocker Wrote: Most manufacturing will have to move out to cheaper locations. We will be just like another Japan.
No we can't never be like Japan. Japan has almost a homogeneous population. We import and import FTs.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#10
Incidentally, the Kaki Bukit manufacturing plant is located within a property of Mapletree Industrial Trust.

According to CNA, about 1,840 workers still remain in the Singapore office after the retrenchment exercise.

The company posted 5 job openings for its Kaki Bukit office in mid Dec 2013 at www.hgstcareers.com

So factory space is still needed here.
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