Lazada Singapore & FDAWU reach 'amicable settlement', eligible workers affected by restructuring to receive enhanced support package

Lazada has also established a training fund to provide employment and employability support for affected members. 

Singapore’s National Trades Union Congress (NTUC) and its affiliate Food Drinks and Allied Workers Union (FDAWU) have shared an update on e-commerce company Lazada Singapore’s recent restructuring exercise.  

According to a joint media statement by NTUC, FDAWU & Lazada Singapore on 4 February 2024 (Sunday), both Lazada and FDAWU have reached an "amicable settlement" over the restructuring exercise, with the discussions resulting in an enhanced support package. This package will comprise financial & training support for eligible union members who were affected by the business transformation exercise, which took place between 3-5 January 2024.

As shared further, Lazada has also established a training fund to provide employment and employability support for affected members. Both entities will collaborate with NTUC’s e2i (Employment and Employability Institute) to administer this support.

Background on Lazada’s restructuring exercise  

On 3 January 2024, Lazada Singapore had announced a restructuring exercise will be conducted, but did not notify FDAWU when it took place.  

Following this, on 5 January, NTUC and FDAWU expressed their disappointment over Lazada, unionised under FDAWU, was not notified on the layoffs, following which Lazada issued an apology to the union and agreed to working together to find a solution.  

The next day, FDAWU accepted Lazada’s apology and then agreed to work closely together to put workers’ interests at the forefront of their negotiations.  

As noted by NTUC, FDAWU did not find the retrenchment benefits of only two week’s salary for every year of service, satisfactory and proceeded with more negotiations, with the Ministry of Manpower (MOM) to continue to facilitate these negotiations.  

Commenting on the latest update, NTUC Secretary-General Ng Chee Meng said: "The intervention by FDAWU is a strong testament to how our unions can represent and protect their members' interests. We urge companies to partner with us and our affiliated unions.

"We understand that companies may from time to time need to restructure but retrenchment should always be the last resort. Both management and union should work together to find amicable and fair solutions for our workers."

SG Ng also urged FDAWU members who were affected by the 3-5 January 2024 restructuring exercise to contact FDAWU for details and instructions.

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Photo: Screenshot of media soundbite featuring NTUC Sec-Gen Ng Chee Meng, provided by NTUC