Union negotiating for better benefits for laid-off Lazada staff

SINGAPORE - The Food Drinks and Allied Workers Union (FDAWU) is negotiating with Lazada for better benefits for the e-commerce company’s laid-off employees, with the talks being facilitated by the Ministry of Manpower (MOM).

This comes after the retrenched employees were told that they would receive two weeks salary for each year of service, FDAWU and the National Trades Union Congress said in a joint statement on Jan 6. The union is an affiliate of the NTUC.

“FDAWU do not find this satisfactory and are negotiating for additional benefits for affected eligible workers,” the joint statement said.

In a separate statement, the MOM said it facilitated discussions between the union and Lazada on Jan 5, and added that there was good progress.

Lazada had cut an undisclosed amount of employees in Singapore on Jan 3 without informing the union, despite these workers being unionised.

The cuts spanned various departments across the company as well as its regional offices from countries including Malaysia, Indonesia and Vietnam.

The latest job cuts come amid speculation regarding a potential initial public offering for Lazada’s parent company, Alibaba International Digital Commerce, in the United States in 2024, first reported in May 2023.

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FDAWU and NTUC said that Lazada has since apologised for not informing them of the retrenchment exercise, with both organisations having earlier expressed their disappointment.

A MOM spokesperson said: “Lazada is working closely with MOM and the FDAWU to ensure that the restructuring exercise is held in a fair and responsible manner, including offering affected employees adequate support and appropriate retrenchment benefits in line with industry standards.”

A Lazada spokesperson said that the company is “proactively cooperating” and consulting the Singapore government, NTUC, FDAWU and other relevant agencies, and will continue to do so.

The spokesperson said: “We respect local labour laws and our employees’ well-being.”

FDAWU said that affected workers can approach them over the phone at 6737 6088 or via e-mail at fdawu@ntuc.org.sg if they need further assistance, or be linked to NTUC’s Employment and Employability Institute (e2i) for employment opportunities.

The MOM reminded all employers to “act responsibly when considering cost-cutting measures”, and to adhere to the Tripartite Advisory on Management of Excess Manpower and Responsible Retrenchment when doing so.

Unionised companies, such as Lazada, should discuss with their unions on how to safeguard the interests of affected employees, MOM added.

Employers can consult the ministry on their restructuring exercises, with more details available at https://go.gov.sg/employment-practices-support-tamem.

This article was first published in The Straits Times. Permission required for reproduction.