Negotiations between Lazada Singapore and FDAWU are progressing amicably.
In a statement issued on 6 January 2024, NTUC and the Food, Drinks and Allied Workers Union said that Lazada Singapore and the union have made some progress in the negotiations involving the retrenchment of Lazada staff, who are mainly executives.
The union was not consulted during the retrenchment exercise carried out between 3 and 5 January 2024.
The e-commerce giant has agreed to cooperate with the union and work together in the best interest of workers.
“FDAWU have accepted Lazada’s apology for not consulting them prior to the retrenchment exercise.
“Both parties have agreed to work closely together and put workers’ interests at the forefront of their negotiations.
“Lazada have also assured FDAWU that they will be consulted in advance for any future exercises,” said NTUC and FDAWU.
Based on the retrenchment benefits, affected workers were informed that they will receive two weeks’ salary for every year of service.
FDAWU will further negotiate for additional benefits, as they find the current retrenchment package unsatisfactory. The Manpower Ministry will continue to facilitate these negotiations.
In an earlier statement issued on 5 January 2024, NTUC and FDAWU had expressed disappointment over Lazada carrying out the retrenchment exercise without notifying the union.
On 3 and 4 January 2024, the media had reported that Lazada had retrenched nearly 100 workers in Singapore.
FDAWU had notified Lazada that the move was unacceptable, and that they have escalated the matter to the Manpower Ministry.
NTUC had also appealed to employers to follow fair and responsible retrenchment practices if layoffs are unavoidable.
The congress had urged employers to avoid laying off workers during festive periods as much as possible.
It also encouraged firms to “ensure openness, transparency and consultation with unions and workers” by following the guiding principles outlined in NTUC’s Fair Retrenchment Framework and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
Affected union members and non-union members can call FDAWU at 6737 6088 during working hours or e-mail them at fdawu@ntuc.org.sg and be linked to NTUC’s e2i (Employment and Employability Institute) for new employment opportunities.
