BUTTERWORTH, MALAYSIA -  An electronics services company has laid off about 70 management staff, including six managers, due to the global economic slowdown.

Venture Electronics Services (M) Sdn Dhd, formerly known as Iomega (M) Sdn Bhd, in its cessation of service letters to the affected employees, said the move was in line with the company's organisational restructuring and realignment exercise.

'We regret to inform that you have not been selected to be a part in our deployment plan. Your employment with the company will cease on Dec 3, 2008,' said the company's human resources manager in the letter to the affected employees.

The company, located in the Bayan Lepas Industrial Park, has been in operation since 1996, providing contract and original design manufacturing services.

The letter also stated that the retrenched employees would be paid necessary compensation in accordance with the Employment Act 1955 and based on the terms and conditions in their appointment letters.

The benefits comprised the employee's last drawn salary till Dec 2, salary in lieu of termination notice, encashment in balance of annual leave as well as employee separation scheme benefits. A retrenched em-ployee, who declined to be named, said he was unhappy with the manner in which the company handled the lay-off exercise.

'When I went to work on Dec 2, my superior told me that I was no longer employed by the company, along with 70 other staff and six managers.

'He said the matter was decided by the company management and that necessary compensation would be paid to me according to the labour laws,' he said.

The employee, however, claimed that the company did not practice a 'last-in-first-out' policy as done by most companies when downsizing their operations.

He said the retrenchment came at a bad time, as his children would be starting the new school term next month.

Malaysian Trades Union Congress (MTUC) Penang division secretary N. Balakrishnan said employers should not take opportunity of the global economic slowdown to axe their workforce.

'Those who feel they are victims of selective dismissal should lodge a report with the Industrial Relations Department and fight to be reinstated in their respective organisations,' he said.

The company's human resources manager declined comment.