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Sunday, August 7, 2022

Union claims 4 chip-making factories dodging contract talks

 

Some 500 workers gathered outside an electronics factory in Perai on Thursday to press for a new collective agreement. (EIEU pic)

GEORGE TOWN: About 4,500 workers in four electronic chip factories in the northern region have been left in the lurch after their respective managements refused to discuss a new collective agreement, a union official said.

David Arulappen, northern region general secretary of the Electronics Industry Employees’ Union (EIEU, said a collective agreement signed in 2019 had expired in June.

Collective bargaining talks were supposed to begin at the end of last month but the management at these four factories had given “various excuses” to skip the negotiations, he said.

“When we asked why we couldn’t meet, they claimed they are going through difficulties, internal audits and financial hardship from the implementation of the RM1,500 minimum wage.

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David Arulappen

“Chips are high in demand, especially in the automotive and computing sector. I don’t see why it would be tough for them to raise workers’ pay and benefits.

“The whole collective bargaining process is not just to ask for better pay, but also to understand the financial situation the companies are in,” he told FMT.

David said most of the factory employees earned very little and had difficulty in coping with the increase in the price of goods, and the rising cost of living.

He added that one of the factories in Perai, which employs 68 people, pays salaries of less than RM2,000 a month, even for someone who has worked there for 15 to 20 years.

On Thursday, a group of 500 workers from Panasonic Automotive Systems Malaysia Sdn Bhd protested outside the factory, demanding that the management take the collective agreement negotiations seriously.

FMT is awaiting the company’s response. - FMT

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