Some 100 workers of TS Solartech Sdn Bhd (TS Solartech) at Bukit Minyak here also claimed that they were given a pittance as severance pay and were let off in a humiliating way.
Company technician Mohd Azwan Ali, 38, who acted as spokesperson, claimed the company had sent a SMS telling him not to come to work.
He said the text was sent at the 11th hour to employees at 6.30pm on Monday, when the majority of them were preparing for the 8pm shift.
Azwan said most of them became aware that the company was about to retrench workers at 2.15pm the same day, but were not told who would be let go and who would be kept.
“They could have given us one month’s notice so we could search for another job. We have families to feed,” he said outside the factory along Jalan Perindustrian 8.
Azwan claimed the company had offered contract staff RM300 to RM500 as severance pay, while permanent staff were given two months’ salary.
Company officials had not entertained queries for comments at the time of writing.
TS Solartech, with sizeable Taiwanese interest, manufactures solar cells on the mainland.
According to a memorandum sent out by the company to its staff on Monday, it had decided to let go of workers due to “redundant productivity” and sought to remove “surplus” workers.
“We regret to inform you that due to redundancy of productivity, there will be a retrenchment programme for surplus workers.
“It does not involve those staff who have tendered their resignation and resigned before this memo was released.
“However, this decision is a not a reflection on your performance,” read the memo that was made available to Business Times yesterday.
Meanwhile, Malaysian Trades Union Congress Industrial Relations Officer V Viji said the retrenchment exercise by the company was unlawful.
“The company’s action of retrenchment by giving 24 hours’ notice is considered unfair and unlawful termination.
“The company’s action is in breach of labour laws and the industrial harmony code of conduct,” he said when contacted.
The spate of “right-sizing” and retrenchment by multinational companies in Penang has been on an uptrend.
Penang has naturally been a farm for tech companies and outsourced shared services over the decades.
The strengthening greenback against the ringgit is widely seen to be one of the reasons for the spate of exits to neighbouring Asean countries.
Two weeks ago, sapphire optics manufacturers Rubicon Sapphire Technology announced it would leave Penang at the end of the year. Some 200 local staff would be let go in the process.
Hard disk makers Seagate and Western Digital packed up and left Penang for Thailand. A total of 4,200 workers from these two companies were reported to have been laid off in July.
Computer chipmaker Intel Corp is also expected to bid adieu to its facilities in Penang and Kedah, which Business Times says will see 1,000 workers let off.
It is part of Intel’s larger lay-off plan, which affects 12,000 workers worldwide.
However, Chinese solar panel manufacturing companies seem to have bucked the trend by pouring more investment into Penang.
Jinko Solar was reported to have invested US$100 million (RM413 million) into its plant in Perai while JA Solar invested RM300 million in their factory in Bayan Lepas here.