Lazada apologises over retrenchment exercise after NTUC condemns move as “unacceptable”

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If you have been following the Lazada retrenchment news closely, you would know that the most latest update is that the National Trades Union Congress (NTUC) and its affiliate Food Drinks and Allied Workers Union (FDAWU) are in the middle of negotiating with Lazada to press them for more benefits for the affected workers.

But if you haven’t been reading, here’s a quick recap of what happened:

  • On 3 January, reports of Lazada retrenching their workers started flying around.
  • The retrenchment exercise was a very sudden one, so many of the workers tio stunned like vegetable.
  • The severance package given to the affected workers was also lower than expected, and worse than what other tech companies such as Shopee and Grab had offered to their employees who were laid off last year.
  • The union heard of the news liao they sibei hot and angry because Lazada never even consult them. Important note: Lazada is unionised under FDAWU.
  • NTUC and FDAWU complain to the Ministry of Manpower (MOM) that Lazada is being sneaky and trying to play punk.

In case you didn’t know hor, in Singapore, when a unionised company, for whatever reason, bo bian needs to retrench their workers they need to notify and consult the union representing the workers prior to the retrenchment one.

The purpose of involving the union is so that they can come in to give support to affected workers and help them negotiate for appropriate retrenchment benefits that is in line with industry standards.

And in this case, Lazada is supposed to consult FDAWU in advance. But Lazada never lor.

Then ah, after kena found out they tried to be sneaky, Lazada later apologised for their layoff lapse. Saying sorry only after getting caught ah. Tsk tsk.

In a joint statement on Saturday (6 January), the NTUC and FDAWU said they have accepted Lazada’s apology and that both parties have agreed to work closely to put workers’ interest as their priority.

FDAWU also said they are still in negotiations for additional retrenchment benefits for affected workers because they think that the benefits Lazada tried to “pacify” the workers with are not enough. Tia gong the retrenched workers were told that they would receive two weeks’ salary for every year of service. Sibei niao.

You can read the statement below:

NTUC FDAWU Statement Lazada

So now, the negotiation between the union and Lazada is still ongoing and this story is still a developing story.

Stay tuned for further updates!

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