Just after midday on November 4, 2014, Artesyn Technologies announced through their QQ blog that employees mainly from the hardware department were participating in a protest against Sony. They held their protest against what they called violent layoffs and discrimination and they appealed to Sony to disclose a list of those being discharged. They also demanded negotiations and a "fair, transparent and open" process.
The protesters and other employees of high tech foreign-invested companies are all too familiar with being kept in the dark, unaware of how they are being managed. Such was the case with earlier layoffs at Nokia and Adobe. Artesyn employees decided to take pre-emptive action, sidelining a formal appeal through trade union organisation.
One employee observed that the trade unions and Sony's Human Resources department were at loggerheads even prior to the announced layoffs. The employee reported that HR wanted to bypass trade union negotiations and speak directly with the disgruntled employees, a divide-and-conquer strategy to minimise collective demands regarding Sony's compensation package.
Sony employees learned that the layoff compensation scheme will follow an "N + 2 + 2" principle, where N equals the number of years worked, plus 2 times the average wage in Beijing plus 2 times Sony's wages. (For example, if I worked 3 years at Sony and the average wage in Beijing is RMB 1,000 per month and the average wage at Sony is 1,500 per month, my compensation would be 3(1,500) + (2)1,000 + (2)1,500 (for a grand sum of RMB 9,500.) The employees were not satisfied with this and a revised package still under discussion.
It was revealed that Sony will stop developing mobile phones specifically aimed at the Chinese market. Research & Development at Sony Mobile in Beijing will be hit hardest by layoffs. Staff from entry-level to managerial positions will be affected.
A Sony official denied that the layoffs were "violent cuts". In communication with Artesyn Technologies, Sony said that relevant measures were being taken to re-evaluate and adjust its MTP-based (Media Transfer Protocol) mobile services. As part of these measures, Sony Mobile will significantly reduce the size of its mobile services in China. Of the 1000 jobs worldwide slated for termination, a majority of these, seven or eight hundred, will be in China. On the same day as the layoffs were announced, Sony Mobile Global CEO Kunimasa Suzuki was in talks with Chinese district staff.
Photo: Protestors in a Sony conference room. (Credit)
Sony also commented that present layoff plans were not finalized, citing a need for further consultation with trade unions and obtaining approval from relevant government departments. However, the company will strive to provide superior compensation for employees affected by layoffs, and through job training and other assistance help manage smooth transitions for discharged workers.
These cutbacks arrive in the wake of Sony Group's report on Q2 2014 earnings, released October 31. Poor performance by its mobile phone sector dragged the company down; heavy losses in Q2 amounted to USD $1.2 billion. Sony CFO Ichiro Yoshida said that to revive performance, Sony would substantially reduce its business in China and no longer develop nor sell mobile phones for the Chinese market.
(Source)