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Corporate Responsibility Report 2006

Social Performance

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Restructuring Plan Finalization

Re-training our employees in Toa Payoh a strong demonstration of social responsibility

As part of our global strategic reorganization to improve our competitiveness, our Toa Payoh plant in Singapore has undergone several changes over recent years. It has changed from a pure assembly and test plant, into a site with varied high-end activities and operations. And the plant now houses the Central Packaging and Test Manufacturing (PTM) activities (previously managed in Rousset), EWS (Electrical Wafer Sort) Manufacturing, and Divisional and Global Outsourcing activities.

With the transfer-out of mature products from Toa Payoh to make way for advanced activities, coupled with improvements in equipment efficiency, the plant faced the challenge of finding jobs for employees affected by the restructuring. These employees were mostly over 40 years old, with little or no elementary education, and low English-language proficiency.

As a socially responsible organization, we are committed to providing employment for our employees, who we consider to be a key stakeholder in our business. So in 2006, we launched a series of re-skilling programs to enable our people to get new jobs in the wafer fabrication plant in ST’s Ang Mo Kio, Singapore. We have arranged this in partnership with the Union and the Ministry of Manpower - Workforce Development Agency.

Many of our employees have now gone through an extensive and comprehensive re-skilling programme, which covers:
1) English language literacy - to equip them with the simple English required to function effectively as Wafer Fab Specialists in the Ang Mo Kio plant
2) Change Management and Personal Effectiveness - to instil a positive mindset so they can better adapt to the changes and maximize their hidden potential

3) Foundation skill / Wafer fab familiarization courses - to give them basic knowledge of Front-end manufacturing

The initial transition was difficult, as we faced strong resistance from employees who didn’t want to leave their familiar working environment or their colleagues who were also friends. However, we worked hard to make the re-skilling programme a success, and many of the employees are now adjusting and adapting well to their new working environment.

ST even gained national recognition and publicity in Singapore as a socially responsible company for not resorting to the easy option of just laying employees off during a restructuring exercise. The Prime Minister of Singapore, Mr Lee Hsien Loong, has also complimented us for our efforts to re-train older workers to enhance their employability.

  • At the end of September 2005, the total headcount for Toa Payoh PTM was 1,364. With the transfer-out of the Eprom line, 63 operators were transferred in October- December 2005.
  • To date, we have successfully transferred 214 employees to Ang Mo Kio and our business headquarters (BHQ).
  • By the end of 2007, we expect to re-skill and transfer another 200 direct and 50 indirect employees to Ang Mo Kio.