Lazada Apologises For Failure To Consult Union Before Retrenchment Exercise
Earlier this week on Thursday (4 Jan), reports emerged of Lazada conducting a retrenchment exercise.
Shortly after, the National Trade Union Congress (NTUC) and its affiliated union, the Food Drinks and Allied Workers Union (FDAWU) escalated the matter to the Ministry of Manpower (MOM), stating that Lazada failed to consult them beforehand.
NTUC and FDAWU shared that some progress has been made on the matter.
The union has accepted Lazada’s apology for failing to consult them regarding the retrenchment exercise beforehand.
The latter also said that it respects local labour laws and the well-being of its employees.
Lazada apologises for not consulting FDAWU before retrenchment exercise
NTUC and FDAWU said in a joint statement on 6 Jan that the union and Lazada have made some progress regarding the recent retrenchment exercise by the firm.
The exercise took place between 3 to 5 Jan 2024 and affected mainly PME employees.
Lazada assured the union that it would fully cooperate and provide the necessary details to allow FDAWU to ensure that it carried out the retrenchment exercise fairly.
The union has also accepted Lazada’s apology for not consulting them before the layoffs.
“Both parties have agreed to work closely together and to put workers’ interests at the forefront of their negotiations,” NTUC and FDAWU added.
“Lazada have also assured FDAWU that they will be consulted in advance for any future exercises.”
Negotiations for better retrenchment benefits ongoing
As for retrenchment benefits, affected employees received the information that they would get two weeks’ salary for every year of service.
“FDAWU do not find this satisfactory and are negotiating for additional benefits for affected eligible workers,” NTUC and FDAWU said.
“The Ministry of Manpower will continue to facilitate these negotiations.”
If affected workers need further assistance, they can approach the union at 6737 6088 during their working hours or email them at fdawu@ntuc.org.sg.
These avenues are also available for those looking to be linked to NTUC’s Employment and Employability Institute for new employment opportunities.
Lazada cooperating with relevant parties & agencies
MS News has reached out to Lazada for more information regarding the extent of the layoffs and the reasoning behind them.
The firm has replied with a response to the joint statement by NTUC and FDAWU.
“We respect local labour laws and our employees’ well-being,” said a Lazada spokesperson to MS News.
“With regards to our recent business transformation exercise, we are proactively cooperating and consulting the Singapore government, the National Trades Union Congress (NTUC), Food Drinks and Allied Workers Union (FDAWU) and other relevant agencies, and we will continue to do so.”
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Featured image adapted from Retail Asia and DP Architects for illustration purposes only.
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