Move to cut wages by up to 20 per cent aimed at containing costs
By Chua Hian Hou 10 February 2009
Contract electronics manufacturer Venture Corp is cutting the pay of senior and middle-management by between 10 to 20 per cent in a bid to rein in costs amid the worsening economic climate.
According to an internal e-mail sent by Venture’s human resources department, obtained by The Straits Times, the ‘Venture group is bracing ourselves for a very tough 2009. We need to take more drastic cost-containment measures in addition to what we have done.’
The pay cuts took effect on Feb 1. Last September, Venture announced a senior management wage freeze.
The pay of lower-level staff will not be affected, ‘but we will continue to right-size the headcounts based on business needs’, the memo said.
‘Venture has taken measures to strengthen itself and to remain competitive ...One of the elements in the area of cost management is a temporary wage adjustment,’ said Venture spokesman Chua Mun Yuen, who confirmed that the memo was authentic.
So far, the mainboard-listed company, which has 1,700 staff here across its Ang Mo Kio and Marsiling sites, has managed to avoid large-scale retrenchments.
Venture said it was unable to disclose its current plant utilisation level as it is currently in a ‘blackout’ period - when it is barred from public statements of material information pending the expected release next week of its financial year for the year ended Dec 31.
Venture is not the only industry player that is looking to cut its wages bill to help with weathering the effects of the the deepening economic slump.
Other electronics manufacturers that have recently cut pay and jobs include Chartered Semiconductor Manufacturing, STMicroelectronics and Creative Technology.
Just last week, hard disk maker Seagate also retrenched an undisclosed number of staff.
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Venture Corp to take pay cut
Move to cut wages by up to 20 per cent aimed at containing costs
By Chua Hian Hou
10 February 2009
Contract electronics manufacturer Venture Corp is cutting the pay of senior and middle-management by between 10 to 20 per cent in a bid to rein in costs amid the worsening economic climate.
According to an internal e-mail sent by Venture’s human resources department, obtained by The Straits Times, the ‘Venture group is bracing ourselves for a very tough 2009. We need to take more drastic cost-containment measures in addition to what we have done.’
The pay cuts took effect on Feb 1. Last September, Venture announced a senior management wage freeze.
The pay of lower-level staff will not be affected, ‘but we will continue to right-size the headcounts based on business needs’, the memo said.
‘Venture has taken measures to strengthen itself and to remain competitive ...One of the elements in the area of cost management is a temporary wage adjustment,’ said Venture spokesman Chua Mun Yuen, who confirmed that the memo was authentic.
So far, the mainboard-listed company, which has 1,700 staff here across its Ang Mo Kio and Marsiling sites, has managed to avoid large-scale retrenchments.
Venture said it was unable to disclose its current plant utilisation level as it is currently in a ‘blackout’ period - when it is barred from public statements of material information pending the expected release next week of its financial year for the year ended Dec 31.
Venture is not the only industry player that is looking to cut its wages bill to help with weathering the effects of the the deepening economic slump.
Other electronics manufacturers that have recently cut pay and jobs include Chartered Semiconductor Manufacturing, STMicroelectronics and Creative Technology.
Just last week, hard disk maker Seagate also retrenched an undisclosed number of staff.
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