FDAWU negotiates retrenchment support package for workers affected by Tetra Pak’s consolidation exercise

Union and management’s longstanding good relations were crucial in ensuring a successful outcome.
By Nicolette Yeo 28 Feb 2024

Workers affected by Tetra Pak Jurong’s consolidation exercise can expect to receive retrenchment support packages in line with unionised norms. They will also gain several benefits, both monetary and non-monetary, due to good practices.


The Food, Drinks and Allied Workers Union (FDAWU) announced this in a statement on 27 February 2024.


The consolidation exercise affected around 300 employees, who were informed of their retrenchment on the same day.


The union will also provide job-assistance support like career coaching and harness its network of unionised companies to arrange job interviews with hiring companies.


It will also leverage the NTUC Training and Placement (T&P) Ecosystem, supported by Workforce Singapore, to organise a job fair for affected workers and provide on-site training to equip them for the new jobs.


The T&P ecosystem comprises NTUC’s e2i (Employment and Employability Institute) and NTUC LearningHub.


A shared belief to help workers


FDAWU General Secretary Tan Hock Soon credits the labour-management relations with Tetra Pak for the retrenchment exercise’s good outcome.


“In managing this consolidation exercise, Tetra Pak has fully committed to supporting the impacted employees. It also values a good partnership with FDAWU, so that together, its workforce is well taken care of.


“Our three decades of labour-management partnership is not built overnight. It has helped ensure the well-being of employees right till today when the company consolidates its business. This demonstrates the very purpose of trade unions in enhancing our workers’ interests,” he said.


Mr Tan said that the company’s early notification of retrenchment to the union enabled both parties to offer affected workers an improved retrenchment support package and outplacement assistance.


“This showed the importance of the shared belief between union and company and putting workers’ welfare at the heart of everything we do. I urge workers who are not members to join the union, so that the union can take care of you and collaborate with your company early in such situations,” he added.


Tetra Pak consolidation exercise

Tetra Pak announced on 27 February 2024 that it will cease its packaging material production operations in Jurong and consolidate its Singapore-based production to other factories in the region within the next 12 months.


The food processing and packaging solutions company will relocate its corporate office to a new location in Singapore by the end of the year, with a capacity of up to 250 people.


Discussions are underway this week to offer the affected employees new opportunities or outplacement support. Tetra Pak will also work with those keen to explore other positions in the company locally or in the region.


“Tetra Pak is committed to supporting all impacted employees by delivering above and beyond all applicable statutory requirements and ensuring they are treated with the utmost respect and care, in line with company values.


“Tetra Pak appreciates the guidance from FDAWU throughout this process. The company sincerely values the dedication and loyalty of its employees and is grateful to them for being an integral part of its success story in Singapore,” said the company.


Affected union members and employees requiring further support can approach FDAWU at 6737 6088 (working hours) or email fdawu@ntuc.org.sg.