Around 300 employees laid off at China-linked S'pore firm after US sanctions on company

The Singapore branch of China Certification & Inspection Group (CCIC) let go hundreds of its employees in May after sanctions by the United States forced them into liquidation.

Established in 1989, CCIC Singapore is a subsidiary of CCIC, a Chinese state-owned company that conducts inspections and surveys of cargo between countries.

On May 13, CCIC Singapore was among several businesses blacklisted by the US for allegedly concealing the origins of two million barrels of Iranian oil set for China.

The US Treasury claimed that the company "likely" certified the Iranian oil cargo falsely as Malaysian heavy crude, Bloomberg reported.

The sanctions froze all US-linked assets of the company, according to the South China Morning Post.

Three employees affected by the layoffs told CNA that they received notice of their retrenchment on May 30, and it took effect the next day on May 31.

The layoffs

In a collective letter to Mothership on Jun. 6, a group of the recently laid off employees said all staff across all departments in the Singapore unit were retrenched.

They estimated that this affected over 300 Singaporean and resident workers.

When CNA reporters visited the Singapore office at Science Park Drive on Jun. 9 and found a few employees at work. One told CNA that more colleagues would be in the office on Jun. 10 after the Hari Raya Haji holiday.

The employee also said that several of her colleagues had been retrenched.

CCIC Singapore told CNA that they had to lay off staff as the impact of the US sanctions were "far greater than expected", and that they have ceased operations in Singapore.

They explained that the US sanctions led to the freezing of the company's bank accounts, which ultimately led to "a breakdown in cash flow, loss of clients and severe disruption to overall operations".

The company was thus forced to liquidate the business and reduce their staff.

They described the layoffs as an "extremely challenging" decision made after "thorough deliberation".

The employees' grievances

In their letter, the laid off employees claimed they had not received their earned salaries for the month of May 2025.

They added that CCIC Singapore offered them a severance of two weeks' salary per year of service, which they deemed unfair given the sudden termination of employment.

The severance was also not fair especially to surveyors who relied on overtime pay and allowances to supplement their basic salaries, the employees told CNA.

They said that the basic salary of junior surveyors was less than S$1,000 a month, while more senior surveyors may earn between S$1,000 and S$1,500.

According to the letter by the employees, there was "minimal consultation or transparency" regarding the company's financial position and the severance offer.

According to CNA, the employees also expressed their frustration at management.

Questioning why assets in Singapore were not used to pay salaries and retrenchment benefits. They also questioned why the parent company was not helping ensure they get paid.

"When your children are in trouble, rightfully, the parents should rescue them, right? Why aren't the HQ rescuing us?"

CCIC Singapore told CNA on Jun. 9 that it will disburse salaries for the month of May and part of the severance payments to each affected employee within three days.

They also said they informed their employees that retrenchment benefits would only be fully paid after the liquidation process was complete, which was estimated to be on Jun. 30, 2026.

Assistance to the employees

The Tripartite Alliance for Dispute Management (TADM) and the Ministry of Manpower (MOM) are working to help the affected employees.

In a joint statement to CNA, the two organisations said that 25 employees from CCIC Singapore have filed claims with TADM regarding salary and retrenchment benefits as of Jun. 9.

TADM is arranging mediation sessions to resolve these claims.

MOM has informed CCIC Singapore of its obligation to pay the employees their salaries, and the company responded that it is trying to secure the funds to do so.

If they are unable to pay the salaries owed, MOM will take appropriate enforcement action.

CCIC Singapore is not unionised, the executive secretary of the Shipbuilding and Marine Engineering Employees’ Union (SMEEU), Ms Marilyn Chew, told Mothership.

Nevertheless, unions or associations affiliated with the National Trades Union Congress (NTUC), which includes SMEEU, will extend assistance to members in non-unionised companies who are retrenched.

This includes helping them file claims with TADM, and connecting them to the NTUC's services for job matching, career coaching, and more.

SMEEU encourages affected employees to contact them for assistance via email at [email protected] or by phone at 6299 2926 during working hours.

Mothership has reached out to CCIC Singapore for further comments.

Top image from Glassdoor