NTUC union negotiates better terms for retrenched Lazada workers

SINGAPORE: Close to a month since e-commerce giant Lazada laid off workers on 3 Jan, the National Trades Union Congress (NTUC) has secured an enhanced support package and training fund for the retrenched workers.

At least 100 workers were affected by Lazada’s latest retrenchment exercise. The Food, Drinks & Allied Workers Union (FDAWU), a union within NTUC, criticised the job cuts at the time, revealing that it was not notified of the latest tranche of job cuts.

Lazada apologised for this failure, and FDAWU said it would strive to secure additional benefits for eligible employees, with the Ministry of Manpower continuing to promote negotiations between the two parties.

FDAWU has since successfully secured an enhanced support package and a dedicated training fund for the affected union members. This package aims to offer comprehensive employment and employability support.

Lazada had initially offered a compensation package of two weeks’ salary for every year of service, a proposal deemed unsatisfactory by FDAWU. The newly negotiated terms reflect a more robust commitment to the well-being of the retrenched workers.

Both parties emphasized that they have taken all considerations seriously and will collaborate with NTUC’s Employment and Employability Institute (e2i) to administer the support measures.

NTUC Secretary-General and former ruling party MP Ng Chee Meng urged other companies to follow suit and 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.”