Both parties have agreed to work closely together to put workers’ interests at the forefront of negotiations.
In an update on 6 January 2024 (Saturday), Singapore's National Trades Union Congress and its affiliate Food Drinks and Allied Workers Union (FDAWU) have shared that some progress has been made between the FDAWU and Lazada Singapore regarding the recent retrenchment exercise which affected mainly PME employees.
As shared in the statement, Lazada has assured the FDAWU of its full cooperation in providing any necessary information to FDAWU to ensure that the retrenchment exercise was carried out fairly.
The FDAWU has also accepted Lazada’s apology for not consulting the union prior to the retrenchment exercise. Both parties have agreed to work closely together and to put workers’ interests at the forefront of their negotiations.
Additionally, Lazada has pledged to consult the FDAWU in the event of any such future exercises.
On the matter of retrenchment benefits, affected workers were informed that they would receive two weeks' salary for every year of service. However, the FDAWU expressed that this was not satisfactory; and is pushing for additional benefits for affected eligible workers via negotiations facilitated by the Ministry of Manpower.
Weighing on the issue in a recent LinkedIn post, the Institute for Human Resource Professionals (IHRP) said: "At the IHRP, we are of the opinion that organisations need to manage layoffs responsibly and be cognisant of their direct impact on the employee and its associated impact on the organisation."
In its post, the IHRP assured that it has always advocated for the retrenchment process to be conducted professionally and objectively. This would mean that employees must be provided with timely and transparent communications, and treated with respect and compassion during these difficult times.
The IHRP strongly encourages companies operating in Singapore to respect and appreciate the principles of tripartism, which it deems has played an important role in preserving a harmonious environment for businesses and workers to thrive. Companies are also reminded to consider their longer-term manpower requirements, including "the need to preserve their Singaporean core."
"HR professionals need to uphold professionalism, act with integrity and remain objective, whilst demonstrating empathy as they navigate complex decisions and situations relating to the workforce, it stated.
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