Lazada retrenchment: Union successfully negotiated for enhanced support package to help eligible retrenched workers!


One month after the news of Lazada retrenching its workers broke, the Food, Drinks and Allied Workers Union (FDAWU), a National Trades Union Congress (NTUC) affiliated union, and Lazada have finally reached an amicable settlement.

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

In a joint media statement released on 4 February, it has been said that the discussions between both FDAWU and Lazada have resulted in an enhanced support package, which FDAWU will disburse to eligible union members who were affected. The statement also noted that the Ministry of Manpower (MOM) has facilitated in some of the discussions.

Meanwhile, for the affected general branch members from other Lazada entities that are non-unionised, FDAWU said that it hopes to support eligible general branch members as well.

In the statement, Lazada and FDAWU said they have taken all considerations seriously and affirm the need to prioritise workers’ interests. Lazada and FDAWU will also continue to work closely to address the displaced workers’ needs and concerns.

Besides the enhanced support package for eligible union members, Lazada has also established a dedicated training fund for FDAWU to provide employment and employability support for affected members in collaboration with NTUC’s e2i (Employment and Employability Institute).

Unions can represent and protect members’ interests

Urging companies to partner with NTUC and the affiliated unions, Secretary-General Ng Chee Meng said in his Facebook post that this intervention by FDAWU is a strong testament to how our unions can represent and protect their members’ interests.

Ng Chee Meng Lazada FDAWU

He acknowledged that understandably, companies may from time to time need to restructure.

However, the labour chief also added that “retrenchment should always be the last resort”, and that both management and union should work together to find amicable and fair solutions for workers.

You may read his full Facebook post here.

Sure Boh?

If you’d like to contribute your story to us, drop us an email at and we’ll review it. We read each submission that comes to us within two weeks of receiving it.

On Key

Related Posts