NTUC Said Lazada Neither Notified Nor Consulted Workers’ Union Before Initiating Retrenchment
On Thursday (4 Jan), it was reported that e-commerce platform Lazada had laid off about 100 of its workers in an unexpected retrenchment exercise.
The National Trade Union Congress (NTUC) and its affiliated union, the Food Drinks and Allied Workers Union (FDAWU), have since expressed deep disappointment over the layoff.
Source: Google Maps
NTUC said that the e-commerce platform neither notified nor consulted the FDAWU about the move beforehand.
The FDAWU has since escalated the matter to the manpower ministry.
NTUC ‘deeply disappointed’ by Lazada retrenchment exercise
NTUC and the FDAWU jointly expressed their disappointment over Lazada’s retrenchment in a media statement to MS News on Friday (5 Jan).
Source: Wikimedia Commons
In the statement, they stated that Lazada had initiated the retrenchment exercise without notifying or consulting the FDAWU despite being unionised under it.
The FDAWU has since written to Lazada to express its disappointment while stating that the move is unacceptable.
Furthermore, the union has highlighted the matter to the Ministry of Manpower (MOM).
NTUC said that retrenchments must be used as a last resort only after exhausting all other options.
It also urged companies to be “considerate” about the timing of such exercises and to avoid laying off employees during festive periods.
In the event of a retrenchment exercise, NTUC said companies must work with the union to ensure that a “fair and equitable” process is carried out.
Companies that are retrenching employees must also ensure “openness, transparency and consultation with unions and workers”.
They must also observe the guidelines under:
- NTUC’s Fair Retrenchment Framework (24 July 2020)
- Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment
NTUC urged those affected by Lazada’s retrenchment exercise to reach out to the FDAWU should they need help looking for new employment opportunities.
They may do so via fdawu@ntuc.org.sg.
Close to 100 Lazada employees reportedly retrenched in retrenchment exercise
According to The Edge Singapore, some Lazada employees were invited to one-on-one meetings with the human resources (HR) department at the end of the work day on Tuesday (2 Jan).
It’s unclear how many employees were laid off, but some sources told Channel NewsAsia (CNA) that they number close to a hundred.
However, it seems the layoffs could continue as the HR department had apparently booked meeting rooms for the rest of the week.
In response to CNBC, a spokesperson from the Lazada Singapore office said the company is making changes to its workforce “to better position [itself] for a more agile, streamlined way of working to meet future business needs”.
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Featured image adapted from Wikimedia Commons and HardwareZone.
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