Lazada’s laid off union members get training fund, better support package

NEGOTIATIONS between e-commerce platform Lazada and the Food, Drinks and Allied Workers Union (FDAWU) have resulted in an enhanced support package and a training fund. These talks were facilitated by the Ministry of Manpower (MOM).

While Lazada and FDAWU disclosed the move in a joint statement on Sunday (Feb 4), they did not elaborate on details of the enhanced support package, citing confidentiality as the reason. The training fund for impacted FDAWU members will be set up by Lazada in collaboration with NTUC’s Employment and Employability Institute.

While negotiations for union members have concluded, FDAWU noted that it recognises that there are non-unionised general branch members of the NTUC affected by the layoffs. The union said that the general branch members could expect something but it will not be the same as those in the FDAWU. There was no timeline or specifics given.

“While Lazada did not start off in the right manner with the union, we are pleased that all parties have settled the matter and moving forward, agreed to build strong partnership to achieve win-win outcomes for the business and workers,” said an MOM spokesperson.

This settlement comes about a month after NTUC first voiced its disappointment over the layoffs in Jan 5.

“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,” said NTUC secretary-general Ng Chee Meng.

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Lazada’s layoffs have been couched as a business transformation exercise and impacted across markets, roles and ranks of the company.

“FDAWU requires its members to register with FDAWU and provide certain documentation. FDAWU will then have to work out their final payout to its eligible affected union members,” said a NTUC spokeperson.

Members who were affected by Lazada’s layoffs should contact FDAWU at 6737-6088 during working hours or e-mail fdawu@ntuc.org.sg for details and instructions. They have until 5pm on Feb 20 to contact FDAWU.