Lazada layoffs prompt disappointment from NTUC and FDAWU over lack of union consultation

NTUC urges employers to conduct fair and responsible retrenchments should layoffs be unavoidable.
By Nicolette Yeo 05 Jan 2024
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In a statement issued on 5 January 2024, NTUC and the Food, Drinks and Allied Workers Union (FDAWU) have expressed disappointment over Lazada carrying out a retrenchment exercise without notifying the union. Lazada Singapore is unionised under FDAWU.


According to media reports on 3 and 4 January 2024, Lazada has retrenched nearly 100 workers in Singapore. Retrenchments are still ongoing.


The media also reported that this is the second round of layoffs following a smaller-scale retrenchment exercise last year.


FDAWU has written to Lazada Singapore, stating that the move is unacceptable, and it has escalated the matter to the Manpower Ministry.


NTUC said it stands by FDAWU and affected workers.


“We, too, are extremely disappointed in this move by Lazada. NTUC would like to reiterate that it is critical for companies to work with their union to ensure that a fair and equitable process was carried out to safeguard the interests of all workers, especially our Singaporean core,” it added.


NTUC also appealed to employers to follow fair and responsible retrenchment practices if layoffs are unavoidable.


“Companies must exhaust all other options before making the call to retrench employees. It also appeals to companies to be considerate about the timing of such exercises and to avoid doing such exercises during festive periods, as far as possible.


“In the event of retrenchment, companies must ensure openness, transparency and consultation with unions and workers and observe the guiding principles outlined in NTUC’s Fair Retrenchment Framework [24 July 2020] and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment,” said the congress.


Affected union members and employees can contact FDAWU at 6737 6088 during working hours or e-mail and be linked to NTUC’s e2i (Employment and Employability Institute) for new employment opportunities.