Dyson notified MOM about layoffs 'on time', within 5 working days of informing affected employees

Dyson had submitted its mandatory retrenchment notification to the Ministry of Manpower (MOM) within five working days of notifying the affected employees, which the ministry described as "on time".

The MOM statement on Oct. 12 came after news of Dyson retrenching workers in Singapore on Oct. 1.

The United Workers of Electronics & Electrical Industries (UWEEI) previously told Mothership it was "disappointed" as it was only notified a day before the company informed affected employees.

However, MOM said that while the norm is to notify the union a month before carrying out a retrenchment exercise, the affected employees in this case were not unionised.

As such, the period of notice is "negotiable" as they were not within the scope of the union's collective representation.

Facilitated clarifications

Following the retrenchment exercise, MOM reached out to UWEEI and Dyson and facilitated clarification on the issues of concern, the ministry said.

MOM explained that based on the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM), employers should provide advance notice to unions before carrying out a retrenchment exercise.

Doing so will enable the union and company to work together to assist affected employees and arrange job placement services, it added.

As Dyson submitted its mandatory retrenchment notification to MOM on time, the Taskforce for Responsible Retrenchment and Employment Facilitation was able to work with Dyson to provide career facilitation services and information kits to the affected employees.

Support for retrenched workers

Dyson has also given its retrenched employees retrenchment benefits that are aligned with the TAMEM, MOM said.

Dyson will also be providing retrenchment benefits to all affected employees with less than two years of service.

They will also get after-care support, outplacement assistance and access to coaching and career counselling.

UWEEI and the Employment and Employability Institute (e2i) are also assisting affected workers who have approached them, MOM said.

Engaging employer and union important

Dyson has explained to the UWEEI the reasons for not giving more advance notice to the union, MOM said.

Both parties have committed to "continue working together in the tripartite spirit to support both the needs of workers and businesses", it added.

"The spirit of engagements between the employer and union is important. It is good practice for companies to give early notice to the union, as this builds trust between the employer and the union."

The tripartite partners, comprising MOM, the Singapore National Employers Federation (SNEF), and the National Trades Union Congress (NTUC), have agreed to further discuss the operationalisation of Section 30A of the Industrial Relations Act, MOM said.

This act allows unions to represent executives individually on retrenchment benefits beyond the scope of representation in the Collective Agreement (CA), to provide safeguards for the interests of both employees and employers.

A CA is an agreement between an employer and the trade union on the employees’ terms and conditions of employment.

"Ultimately, a collaborative and constructive relationship between the union and employer benefits both businesses and workers," the ministry concluded.

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