S'pore union negotiating with Lazada for more benefits for retrenched staff

The Ministry of Manpower will continue to facilitate these negotiations.

Fasiha Nazren | January 06, 2024, 04:58 PM



On Jan. 3, e-commerce company Lazada reportedly laid off a number of its staff from the Singapore office.

"Some progress" has been made with regards to the recent retrenchment exercise, according to a joint statement by the National Trades Union Congress (NTUC) and its affiliate Food Drinks and Allied Workers Union (FDAWU).

The Jan. 6 statement said that Lazada has assured the FDAWU that they will "fully cooperate and provide any necessary information" to the FDAWU to ensure that the exercise was carried out fairly.

Lazada apologises

FDAWU has also accepted Lazada's apology for not consulting them before the retrenchment exercise:

"Both parties have agreed to work closely together and to put workers’ interests at the forefront of their negotiations. Lazada have also assured FDAWU that they will be consulted in advance for any future exercises."

According to the statement, affected workers were told that they would receive two weeks' salary for every year of service.

The FDAWU does not find this satisfactory and is negotiating for additional benefits for affected eligible workers.

The statement added: "The Ministry of Manpower will continue to facilitate these negotiations."

A statement by an MOM spokesperson said that MOM had facilitated discussions between FDAWU and Lazada Singapore on the company's recent restructuring moves:

"Lazada is working closely with MOM and the FDAWU to ensure that the restructuring exercise is held in a fair and responsible manner, including offering affected employees adequate support and appropriate retrenchment benefits in line with industry standards.

All employers should act responsibly when considering cost-cutting measures, in adherence with the Tripartite Advisory on Management of Excess Manpower and Responsible Retrenchment (TAMEM). In addition, unionised companies like Lazada should initiate discussions with their unions to safeguard the interests of affected employees. Employers can consult MOM on their restructuring exercise – more details can be found at this link go.gov.sg/employment-practices-support-tamem."

Affected workers can approach the FDAWU by calling their hotline at 6737 6088 during working hours, or email [email protected] should they require any further assistance.

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