Wednesday, March 25, 2009

Good News for the Retrenched?

Just got this email from Jobstreet. Here, they have a link too, you can go and have a look if you want to...

Government's 2nd stimulus package announcement: companies who employ workers retrenched from 1 July 2008 will be given double tax deduction

I'm not sure if we should rejoice at this or not.. I mean, of course it's good news for those already retrenched. After all, they've got nothing else to lose anymore..

What about those hanging in the balance, like me?

You see, if the situation is really that bad, that people have to be retrenched, what are the odds of them hiring? What would you do? Based on the example given, it means you would spend another RM24k to get a RM6k savings? I won't do that if I'm the boss and my motive is to cut cost...

I'm also worried that with this, those smaller scale companies would retrench their lower level workers and replace them with people retrenched from other companies. Surely there would be people left out if this really happen..

And how do you define retrench? There are many people out there who are tied to those manpower outsourcing companies and not the companies they work for. If they get terminated, they would still be the outsourcing companies headcount, but without a job. Does these people count as retrenched people?

I'm really not sure if this is indeed a good move, or whether our "economic experts" in Putrajaya has got it all wrong again...

But then and again, I'm just an ordinary engineer bloke who still doesn't know much about the economics, I'm just saying what I think of at the moment... who knows...... maybe....

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