Panasonic confirms manufacturing department shutdowns

 

Panasonic Manufacturing Malaysia Bhd (PMMA) has officially confirmed the closure of two product manufacturing departments in its SA1 plant in Section 15, Shah Alam.

In a statement released on Bursa Malaysia today, the company said the decision was made after careful consideration and deliberation.

Its rationalisation exercise which ended on March 31, had involved “a nominal number of employees within the affected departments”, it said.

The announcement follows a Malaysiakini report today on the estimated impending closures of Panasonic manufacturing departments in Malaysia which could leave hundreds jobless.

The report pointed out the closures of PMMA’s rice cooker and kitchen appliances manufacturing departments between 2022 and March this year. The closures have impacted over 200 workers.

The statement also reconfirmed Malaysiakini’s report of PMMA’s claim that its defeat in two lawsuits filed in 2016 and 2017 respectively and ended last year, were not related to the rationalisation exercise.

In the suit, PMMA had alleged that its former suppliers, then executive director Chen Ah Huat and employees, defrauded it of millions of ringgit in payment for work that could not be verified as being delivered.

Unknown number of Panasonic companies

The Malaysiakini report shed light on the closure of manufacturing departments and companies associated with the Panasonic brand in the country. However, the exact number of Panasonic companies operating in Malaysia is unclear.

These companies are involved in diverse sectors, including manufacturing; sales and services; and research and development.

In the manufacturing of electrical appliances sector, five different Panasonic companies have registered a trade union presence in their operations.

Without naming the departments in its statement, PMMA emphasised that the rationalisation exercise and business restructuring only affected the mentioned departments and “no other plants or departments” were impacted.

However, sources within PMMA disclosed that employees in departments responsible for manufacturing other appliances in its SA2 plant in Section 23, Shah Alam, expressed concern about the future of their jobs.

The closures of manufacturing departments in the SA2 plant, as estimated by the sources, are expected to occur in the upcoming years, but PMMA has yet to confirm these closures.

Over the years, PMMA has been producing 11 different products across its SA1 and SA2 plants. However, the production of blenders, food processors, juicers and rice cookers has been relocated to other Asian countries, resulting in anxiety among workers.

PMMA was also unable to confirm the closure of the two other Panasonic companies – Panasonic Appliances Refrigeration Devices Malaysia Sdn Bhd (PAPRDMY) in Malacca and Panasonic AVC Networks Johor Malaysia Sdn Bhd in Johor.

The Electrical Industry Workers’ Union (EIWU) however said the Panasonic company manufacturing refrigerator compressors was closing operations on Dec 31.

also making arrangements for closure before the year comes to an end, although the exact number of affected workers remained uncertain.

The Star reported that Deputy Human Resources Minister Mustapha Sakmud has assured that the Labour Department will safeguard the rights of workers affected by the Panasonic manufacturing department closures. - Mkini