Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: DJBEINO who wrote (5463)	8/13/1998 7:13:00 AM
From: Stitch	Read Replies (1) \| Respond to of 7841

DJ; <<SEAGATE TO MAKE NEW SERIES OF RECORDING HEADS IN MALAYSIA >> In today's paper in Malaysia, directly adjacent to the story you posted (above) is another story about Seagate. I summarize as follows: *"Windfall for 17,000 Seagate employees"* The uncertainty in the global disk drive industry has not prevented independent computer disk drive and components manufacturer Seagate technology Inc. from rewarding its 88,000 employees world wide for their dedication. The scotts valley, CA company has declared a special profit sharing of 4.6% of the monthly salaries of its employees, including 17,000 of them in Malaysia. "Although our net income did not meet the qualification threshold for profit sharing, we are doing it anyway in recognition of all the hard work put in by our employees said Tim Harris, Vice President, World-Wide Slider Fab Operations. The company has more then US$1.8 billion in cash and short term investments", he added. "To plan for our future in Malaysia Seagate will continue to invest capital, machinery, and technology in all our operations. The Malaysian operations continue to be a key in the company's integration strategy" Harris said. Frankly, as a shareholder, I am all for this move on Seagate's part. I think it is very wise in view of the months of demoralizing announcements and long arduous hours. It also is encouraging to see Seagate move to acknowledge its most valuable asset. This also suggests that Seagate doesn't plan to lay off a lot more people in my opinion. I guess Al was the last. The article so mentions that Seagate paid out approximately 600,000 Rm to its local employees. An interesting side note. If Seagate has 17,000 employees in Malaysia, to whom they paid 4.6% of their monthly salary in bonus, and the total was around 600,000 Rm, which today is exchanged at 4.24/$1US then the average monthly wage of a Malaysian employee at Seagate is $ 180.85. This includes in that average engineers, supervisors, managers, several directors that I know of, and, presumably, their managing director at the head manufacturing facility who is a local. Something to think about is that this figure is likely a third to a half less in China, where Seagate is focusing even more on new DD capacity. P.S. When I lived in California I think that is about what my Lexus mechanic charged per hour for labor.