Penang state government is disappointed at the announcement by Dell Malaysia to offer voluntary separation scheme (VSS) to 700 out of 4,500 employees at its manufacturing plants in Bukit Minyak and Cyberjaya. Dell had said that the VSS are part of efforts to reduce its global workforce by 10%, or about 8,800 jobs and reduce its costs by up to US$3 billion by 2011.
The Penang state government has directed investPenang and its Career Assisted Training(CAT) Centers to assist 700 workers who may need to look for new jobs should they accept the VSS offer by Dell Malaysia. The Penang state government had established the CAT Centers in March this year with a RM 10 million allocation to help workers retrenched during the economic recession to find jobs and also match employers with the workers they are seeking.
CAT centers are one of the most effective and successful mechanism in the country to help people find jobs. This is borne out by 4,137 vacancies and only 2,632 applicants registering for a job with the CAT centers as at 15.12.2009. Even jobstreet.com has 1,660 vacancies available as at 15.12.2009. The Penang state government is confident that 700 workers who accept the VSS can easily find jobs in other companies in the electric and electronic industry in Penang, which has revitalized itself during these last two quarters following improving market conditions.
The Human Resources Ministry appears to confirm improving sentiment and market conditions in Penang by stating there were 8,891 jobs open in the manufacturing sector this year. Those Dell workers who wish to work in other companies may take this opportunity to accept the VSS offer without needing to fear about not getting jobs.
Dell Malaysia had said that the exercise which will be completed by July next year will involve front-line and non-front-line employees including, operators, supervisors and managers, all of whom are Malaysians. Every effort will be made to assist those workers who accept VSS and I have directed Datuk Lee Kah Choon Chair of the investPenang Executive Committee to take charge, handle and answer all issues relating to this matter. However we are heartened by Dell Malaysia’s assurances that Dell would continue to hire more in other departments such as customer care, finance, procurement, IT and supply chain, including in Penang.