Panasonic AVC Networks Johor Malaysia Sdn Bhd (PAVCJM) has confirmed the discontinuation of two production lines in its plant in Pasir Gudang, Johor, impacting 880 workers.
This comes after Malaysiakini's report last week of manufacturing line closures at three companies under the Panasonic group in Malaysia, including the public-listed Panasonic Manufacturing Malaysia Bhd (PMMA).
The PAVCJM confirmation brings the total number of workers affected by the restructuring of the Panasonic group in Malaysia to more than 1,000 workers.
In an email, PAVCJM managing director Hidekazu Ennouji said the company will discontinue the production of audio products by the end of March 2024.
The production line for those products will be transferred to its sister company Panasonic AVC Networks Kuala Lumpur Malaysia Sdn Bhd (PAVCKM) in Section 21, Shah Alam, starting in October.
“This is to strengthen the competitiveness of products and streamline production facilities in Malaysia,” he added.
The reorganisation will affect approximately 560 employees involved in the manufacturing of audio products.
Moving to China
Ennouji also confirmed the cessation of digital camcorders production by the end of September next year and will be consolidating its production to Panasonic AVC Networks Xiamen (PAVCX) in China.
“This is to improve production efficiency globally. The transfer of camcorder products to PAVCX will start in September 2024.
“Approximately 320 employees will be affected by the end of December next year,” he added.
On the compensation scheme offered to the affected workers, Ennouji revealed that the extra retirement benefit and others will be paid “in good faith” in accordance with the local laws and regulations.
He stressed that PAVCJM is working closely with relevant authorities, government agencies as well as the United Workers of Electronics & Electrical Industries to ensure all affected employees are “well-supported during this transition, including assisting with job placements”.
Malacca plant shutdown
Last week, Malaysiakini reported that PAVCJM was making arrangements for closure before the year comes to an end.
It also detailed the closures of PMMA rice cooker and kitchen appliances manufacturing departments between 2022 and March this year. The closures have impacted approximately 210 workers.
PMMA, based in Shah Alam, also told Malaysiakini the restructuring was unrelated to the lawsuits it took against its former staff and suppliers over alleged fraud. PMMA lost the cases last year.
Malaysiakini also last reported the closure of a Malacca plant in the Panasonic group - Panasonic Appliances Refrigeration Devices Malaysia Sdn Bhd (PAPRDMY) – by year-end.
Electrical Industry Workers’ Union (EIWU) secretary-general Zaimi Muhammad Yusof confirmed this, saying that PAPRDMY will close operations in Malacca on Dec 31, laying off 590 union members. The factory will move to China.
Speaking to Malaysiakini, a well-placed insider in PAPRDMY also confirmed the closure, saying the firm had been transparent by declaring it to government authorities, especially the Labour Department.
“It is as reported by Malaysiakini. We will be fully closed. The union members will receive retrenchment payouts of 1 to 1.75 times their basic monthly salary multiplied by their years of service,” he added.
The closures of two product manufacturing departments in PMMA, the termination of two production lines in PAVCJM as well as the shutdown of PAPRDMY will affect a total of 1,680 workers.
'Malaysia still key for Panasonic'
Despite numerous closures, PAVCJM asserted that Malaysia remains a regional and important hub for Panasonic.
“The Panasonic group in Malaysia will continue to have approximately 17,000 employees across various business domains, including high-value manufacturing, research and development as well as headquarters operation.
“We will continue to invest in Malaysia to support our growth strategies in the high-value supply chain and continue contributing to the communities in Malaysia and beyond,” it said. - Mkini
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