Taiwan’s Chunghwa Picture Tubes announces layoffs

Troubled flat panel maker to dismiss 2,100 employees

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Chunghwa Picture Tubes has decided to lay off 2,100 employees (Image from www.google.com.tw/maps).

Chunghwa Picture Tubes has decided to lay off 2,100 employees (Image from www.google.com.tw/maps).

TAIPEI (Taiwan News) – Just hours after denying media reports, the Tatung Group’s troubled Chunghwa Picture Tubes Ltd. (CPT, 中華映管) announced Thursday (August 29) evening that it would lay off all of its 2,100 employees and later re-employ them if necessary.

The flat panel maker, founded in 1971, has been going through months of restructuring with rumors of total collapse and massive layoffs surfacing again and again.

Earlier in the day, the company still said that no decision about its future had been reached after media reported that it was planning to keep only 50 of its more than 2,100 current employees.

After the stock market closed, CPT said it would dismiss all of its staff in a measure to take effect after 60 days, but it would take former workers back on if the need arose, the Central News Agency reported.

After the courts had rejected its restructuring plans, the company said orders from customers had dropped to zero, and the deadline for legal protection was about to pass.

While the CPT board decided Thursday to terminate its staff, a decision on whether or not to continue doing business would have to wait until the end of the 60-day period.

The latest spate of rumors originated from reports that the company still had not paid its electricity bill for July, which under normal circumstances would mean that its power supply would be cut off on the first working day of next month, next Monday September 2.

Earlier report:

TAIPEI (Taiwan News) – The Tatung Group’s troubled Chunghwa Picture Tubes Ltd. (CPT, 中華映管) on Thursday (August 29) denied media reports it was about to file for bankruptcy and to lay off most of its staff.

The flat panel maker, founded in 1971, has been going through months of restructuring with rumors of total collapse and massive layoffs surfacing again and again.

The latest media reports mentioned that the company was planning to keep only 50 of its more than 2,100 current employees, but a spokesman denied the report, saying all options were still under discussion.

The Taoyuan City Government’s Labor Affairs Department said it had received no information from CPT about plans for dismissals at its factories in the city, but it would keep in touch with management, the Central News Agency reported.

The latest spate of rumors originated from reports that the company still had not paid its electricity bill for July, which under normal circumstances would mean that its power supply would be cut off on the first working day of next month, next Monday September 2.

Management reportedly confirmed it had not paid the bill yet, but it was doing its best to meet the deadline, according to CNA.

An earlier restructuring plan following a stoppage had allowed production to resume on a modest scale, but the courts rejected the plan and the company’s appeal, forcing another complete shutdown, CPT said.

No decision had been reached yet about layoffs and about ending the company altogether, though both were being considered as options, according to CPT officials.