NTUC raises Lazada’s sudden layoffs with MOM, says union wasn’t told of them

The National Trades Union Congress (NTUC) and its affiliated union, Food, Drinks and Allied Workers Union (FDAWU), said e-commerce company Lazada carried out a sudden retrenchment on Wednesday (Jan 3) without first informing the workers’ union.

Lazada is unionised under FDAWU.

The workers’ organisations are “deeply disappointed” by the layoffs, saying “such a move is unacceptable”.

FDAWU also raised the matter with the Ministry of Manpower (MOM), based on NTUC’s statement on Friday.

Lazada on Wednesday laid off an undisclosed number of its Singapore staff, amid speculation of an upcoming initial public offering.

NTUC said it stands by FDAWU and the affected workers. It added that companies should work with their union to ensure a fair and equitable process, and safeguard the interests of workers.

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“NTUC would like to reiterate that while retrenchments may be inevitable, it should only be used as a last resort,” said the trade union. It urged companies to be considerate about the timing of retrenchment exercises and to avoid doing so during festive periods.

NTUC said: “In the event of retrenchment, companies must ensure openness, transparency and consultation with unions and workers, and observe the guiding principles outlined in NTUC’s Fair Retrenchment Framework (Jul 24, 2020) and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.”

It encouraged affected workers to approach FDAWU for assistance. “FDAWU will enlist the help of NTUC’s e2i (Employment and Employability Institute) to assist in your search for new employment opportunities,” it said.