28 December 2013

More Than 500 Staff Retrenched at Hitachi Global Storage Technologies

Source

Mainly they are shifting their hard disk manufacturing operations to Thailand, obviously because labour costs there are so much cheaper. I think they can easily hire a staff from 6000 to 7000 Bahts a month, which is around $230+ Singapore dollars.

Actually most companies have shifted some or most of their operations to emerging markets like China, Philippines and Thailand, of these 3, Philippines staff costs are the highest since they are a English speaking country, Thailand and China are the cheapest.

This has nothing to do with our economy, it's just because operating costs in Thailand are lower, and the company is taking that opportunity to maximize their profit, that's all. For those who were retrenched, I wish them the best, I hope the relevant ministry and union will do their best to assist these people.

Also to highlight that people working in the production line usually have a low monthly basic salary of between $1100 to $1600, and in order for them to earn more than their basic salary, they need to perform overtime work. I have a friend who used to serve in the army with me, I heard from him that his basic salary is around $1600, with overtime work, he can earn $3000 or more a month, but that's a lot of overtime work to do so it's not easy for him. The article mentioned that for those retrenched, the company will compensate them one month's basic salary for every year of service, it's really not much, so I really hope the ministry will help these people out.

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