Panasonic retrenches 700 as it shuts Singapore manufacturing operations

ELECTRONICS giant Panasonic announced on Thursday that it would lay off some 700 workers in Singapore as it shuts down its refrigeration compressor manufacturing operations by the end of Sept 2022.

The company said that the move was a result of a “challenging” global business outlook and comes after a long-term business strategic review of its refrigeration compressor business portfolio. The compressor manufacturing operations will be consolidated with the company’s existing facilities in Malacca, Malaysia and Wuxi, China. 

Panasonic’s research and development (R&D) operations will remain in Singapore, and it will continue to serve as the global headquarters of its refrigeration compressor business. 

Panasonic Appliances Refrigeration Devices Singapore (PAPRDSG) was established in 1972. It currently produces compressors for household refrigerators and freezers at its facilities in Bedok South Road and Gul Road.

According to The Straits Times, around half of the 700 workers in its compressor manufacturing operations are Singaporean, while another 13 per cent are permanent residents.

Mr Khoo Chew Thong, adviser for R&D and quality administration at PAPRDSG, told The Straits Times that about 60 per cent of staff who are laid off are aged 50 or older, and another 30 per cent are between 30 and 50 years old.

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PAPRDSG has around 760 employees at present, of whom 12 per cent are based at the Gul Road plant.

Affected employees in roles such as production control and process engineering were also notified in four separate 45-minute sessions on Thursday, and they will progressively be laid off in batches beginning on March 31 until Sept 30. 

The company also said that it is working closely with the United Workers of Electronics & Electrical Industries (UWEEI) as well as government agencies and the relevant authorities to ensure that affected employees are well-supported. 

In a statement to the media on Thursday, UWEEI said that it has been working with the company and the Economic Development Board (EDB) to ensure that the retrenchment exercise will be carried out in a transparent, fair and responsible manner. 

The trade union said that employees will receive higher retrenchment benefits than the industry norms. Unionised companies normally pay one month’s salary for each year of service, as compared to industry norms of between two weeks to a month’s salary per year of service. 

It will also work closely with NTUC’s Employment and Employability Institute (e2i) and EDB to provide job placement assistance to affected employees. In particular, it is arranging for affected staff to attend virtual or physical job fairs and employability workshops with e2i’s help. 

Furthermore, e2i will facilitate the upskilling or reskilling of employees as they seek out other job opportunities. UWEEI said that its members may tap on the Union Training Assistance Programme (UTAP), which provides subsidies of up to S$250 per year on more than 5,300 training courses. 

Meanwhile, the union is working with other unionised companies that may have vacancies in the same or adjacent sectors, and will assist members who may face financial hardship via its various assistance programmes.

While 700 staff are being retrenched, PAPRDSG will also work with other companies in the Panasonic group in Singapore to explore possible re-employment, Mr Khoo told The Straits Times.

"The re-employment will depend on the job availability within the business divisions and job fit," he said, adding that UWEEI was notified of the job cuts on Sept 21.

After the retrenchments, Panasonic will still have more than 1,400 employees in different business domains like high-value manufacturing, R&D and its Asia Pacific headquarters. PAPRDSG staff in roles like R&D, sales and marketing and accounting will not be affected by the closure of manufacturing operations. 

The Panasonic R&D Centre Singapore conducts research in areas like artificial intelligence and wireless network technologies.