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© michal-kowalski-dreamstime.com Electronics Production | July 04, 2013

Sanmina pays compensation

Sanmina-SCI's issues in Kuching, Malaysia seem to have reached a conclusion. The company has agreed to pay USD 870'000 as additional compensation to the employees they retrenched in October 2012.
The initial payment the workers received on the day of the retrenchment was but one week of salary. Sanmina has now backed on that and is paying an additional USD 870'000 to be distributed amongst the 856 affected workers.

The bulk of the payment - USD 650'000 – is to be divided between those workers that received little to none compensation. The remaining USD 220'000 will be shared among all affected workers as “retrenchment benefits”, according to a report in the Borneo Post.

Lisa Choa, Ex-Sanmina Employees’ Protem Committee member, told the Borneo Post that the retrenchment benefits don't even cover a month's salary, and that it is just the minimum legal requirement.

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