Employees retrenched during Lazada’s recent layoffs will get “an enhanced support package” following talks between the company and the workers’ union.
In a joint statement on Sunday (Feb 4), Lazada, the National Trades Union Congress (NTUC) and its affiliate Food, Drinks and Allied Workers Union (FDAWU) said that “an amicable settlement” has been reached, and the package will be used to help eligible affected 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).
Stressing that all considerations were taken seriously, Lazada and FDAWU said they would continue working closely to address the affected workers’ needs and concerns.
“Lazada gave FDAWU direct recognition in October 2020. This means that as the legally recognised union for Lazada, FDAWU could enter into further discussions with Lazada to secure a better outcome for FDAWU union members,” the statement read.
“FDAWU also recognises that there are affected general branch members from other Lazada entities that are non-unionised. Although these are non-unionised entities, FDAWU hopes to support eligible general branch members.”
Lazada has agreed to maintain open channels of communication with the FDAWU, said the Ministry of Manpower (MOM) on Sunday.
It added that all employers should “act responsibly” when considering cost-cutting measures, with retrenchment as the last resort.
Retrenched Lazada workers were initially told that they would receive two weeks’ salary for every year of service.
However, FDAWU said on Jan 6 that it did not find this satisfactory and was negotiating for additional benefits for affected eligible workers.
The latest development on Sunday came after FDAWU said it was disappointed at not being notified or consulted prior to Lazada’s retrenchment exercise in early January, calling it “unacceptable”.
CNA
