NEC gives chip workers extra time out
Up to six days off by year-end at 80% pay
Posted in Business, 2nd November 2001 14:43 GMT
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More than 6,000 NEC chip-making employees will receive extra holidays in November and December, in a cost-cutting move.
The enforced holiday time - amounting to between two and six days - will be 'granted' to NEC's workers in Japan. Affected staff receive reduced pay during their time off, equivalent to 80 per cent of their usual daily wage, the company said today.
The move targets Japanese plants with below average capacity utilisation ratings. Curiously, the company's main DRAM plant is not affected, despite the sharp downturn in the memory market. This decline will cause NEC's DRAM business to lose ¥80 billion ($656 million) in the year to March 2002, the company says.
NEC as a whole lost ¥30.8 billion in its most recently completed quarter, to 30 September. According to the Semiconductor Industry Association, global chip sales fell to $10.2 billion in September, down 2.5 per cent on August's sales and 44.6 per cent on September 2000. ®
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