Lazada and the Food, Drinks and Allied Workers Union (FDAWU), a National Trades Union Congress (NTUC) affiliated union, have reached an amicable settlement following the e-commerce company's retrenchment exercise.

According to a media statement released on Feb. 4, the discussions have resulted in an enhanced support package, which FDAWU will disburse to eligible union members who were affected.

Business transformation exercise

Lazada reportedly began laying off a number of its staff from the Singapore office on Jan. 3, 2024.

Lazada, unionised under FDAWU, did not notify or consult the union before initiating the retrenchment exercise.

The e-commerce company gave FDAWU direct recognition in October 2020.

This means that as a legally recognised union for Lazada, FDAWU can enter into further discussions with the e-commerce company to secure better outcomes for union members.

Amicable settlement

Lazada and FDAWU arrived at an amicable settlement after weeks of negotiations, with some of the discussions facilitated by the Ministry of Manpower (MOM).

Lazada and FDAWU have affirmed the need to prioritise workers' interests and will continue to work closely to address the needs and concerns of the affected displaced workers.

FDAWU also hopes to extend its support to eligible affected general branch members from other Lazada entities that are non-unionised.

Meanwhile, Lazada has also established a dedicated training fund for FDAWU to provide employment and employability support for affected members in collaboration with NTUC's e2i (Employment and Employability Institute).

Swift resolution

The swift resolution of this incident and subsequent settlement reached between Lazada and FDAWU was possible because of tripartism, an MOM spokesperson said.

Tripartism has allowed employers, unions, and the government to work together to find solutions and overcome challenges together, they added. "While Lazada did not start off in the right manner with the union, we are pleased that all parties have settled the matter and moving forward, agreed to build strong partnership to achieve win-win outcomes for the business and workers."

Former Lazada employees affected to email FDAWU

MOM encouraged all employers to act responsibly when considering cost-cutting measures, with retrenchment as the last resort.

Meanwhile, former Lazada employees who are FDAWU union members affected by the Jan. 3 to 5 retrenchment exercise are encouraged to email ([email protected]) or call (6737 6088) FDAWU for more details.

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