Tuesday July 1, 2008
GEORGE TOWN: Japanese wireless toy manufacturing company Nikko Electronics Bhd closed its Prai factory on Tuesday, leaving about 950 employees jobless.
InvestPenang chairman Datuk Lee Kah Choon said the company, which is listed on the Bursa, closed down due to dwindling exports and market demand, and escalating production costs.
“As far as the state government and InvestPenang are concerned, we are looking into measures to ensure the retrenched workers’ welfare.
“We are working closely with the Labour Department to compile the workers’ reports on their individual situations. We expect that when that is done, the case can be filed at the Magistrate’s Court tomorrow for claims,” he told a press conference Tuesday.
Lee said the state had tried to contact the factory’s managing director in efforts to facilitate amicable solutions for the workers and the factory management. Most of the retrenched workers were from the assembly line, 73 of whom were foreigners.
“We want to meet with them to resolve issues concerning the workers’ wages and benefits; to learn of their plans for the factory’s land and facilities; and to get the necessary details to help the retrenched workers get new jobs.
“We can help the company with the financial part if they are interested in selling their Prai property. Investors on our reserve list may be interested in taking over the premises for manufacturing activities,” he said.
Lee said he did not think Nikko Electronics was planning to relocate its company as its move to close down the factory without giving its employees one month’s notice as required by the 1955 Employment Act was damaging to its reputation.
However, it was learned that the company had informed Bursa on Sunday about the situation.
“We are not assigning the blame to any party. Our main task now is to overcome this episode and ensure the workers get their entitlements and help them get re-employed,” Lee said.