‘We don’t deserve this’: Twelve Cupcakes staff gather to seek recourse on salaries, CPF contributions

[SINGAPORE] About 15 counter staff of Twelve Cupcakes met at the Ministry of Manpower (MOM) Services Centre at Bendemeer Road on Friday (Oct 31) morning to ask about outstanding salaries and payments owed to them by the shuttered cupcake business.

This comes a day after Twelve Cupcakes announced it had closed down and has gone into provisional liquidation. Affected employees earlier told The Business Times that they were informed of the closure via WhatsApp at 8 pm on Wednesday, with a termination letter accompanying the message. 

No further details were provided by Twelve Cupcakes on the matter. The liquidator, AAG Corporate Advisory, said it is unable to provide details on operations, finances or the reasons for the liquidation before obtaining the relevant information, in response to BT queries on Thursday.

One of Twelve Cupcakes’ outlet managers told BT outside the MOM Services Centre on Friday that the decision to shutter the company came to its staff with zero warning. 

“We did not know anything (about this) in advance. There was no notice period at all,” he said. “With so many bills to pay, starting with our rent – what are we going to do now?” 

He added that the main concern among employees now is the salaries they are owed for October, on top of compensation for the sudden termination of employment, especially since the 30-day notice period was not abided by. 

Others BT spoke to on Friday said this is particularly pressing as many affected have rent due at the end of the month. Most said they are expected to foot their rent by Friday or Saturday – or risk facing eviction or incurring late charges.

Those who are foreign workers also said they have debts to repay back home; others have to pay tuition fees for their children.

Some workers noted that Central Provident Fund (CPF) contributions were not credited to their accounts for October. 

SEE ALSO

‘Unacceptable and unfair’: Union raps Twelve Cupcakes for abrupt closure, axing of 80 workers

Twelve Cupcakes shutters, bakery chain in provisional liquidation

Specific representatives of the counter staff group were addressed by MOM staff in closed-door meetings. These workers told BT afterwards that they were informed local unions would handle all compensation-related matters. 

They added that a separate meeting with union members has been set up for next week, though a fixed date and time have yet to be confirmed. 

As for S-Pass holders, no extension will be given, which means such affected workers will have 30 days to find a new job in Singapore, or they will have to return to their home country. 

Affected workers who gathered at the MOM Service Centre on Friday comprised those on S-Passes, Work Permits and Long-term Visit Passes, as well as Singapore citizens.

“We understand that the liquidation will take some time, but we do (at the very least) have to receive our salaries for the month of October today so we can continue covering our basic expenses in Singapore, and to feed our families,” one told BT.

For the time being, the group of counter staff are putting together a page to raise donations.

“We are truly hoping for the best by next week – and we hope the government can help us in our current situation,” the outlet manager said. 

A representative from home-grown eatery The Soup Spoon reached out to BT on Friday, offering to assist affected Twelve Cupcakes workers with available job opportunities. The business has store openings lined up starting from next week, with several full-time and part-time positions to fill.

The Food, Drinks and Allied Workers Union (FDAWU) on Thursday criticised the cupcake’s business’ abrupt closure as “unacceptable and unfair”, strongly objecting to the business owner’s lack of prior consultation and advance notice. 

FDAWU said it will be assisting members and workers with salary-related claims and job-assistance support, as well as connecting them to the labour movement’s network, such as NTUC’s Employment and Employability Institute (e2i). 

MOM and the CPF Board said in a joint statement on Friday evening that the actions of Twelve Cupcakes in this case were “irresponsible” and not aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

“Despite being a unionised company under the FDAWU, Twelve Cupcakes did not engage the union early, before affected employees were notified,” they added.

MOM and the CPF Board said the Taskforce for Responsible Retrenchment and Employment Facilitation, which comprises MOM, Workforce Singapore, NTUC and e2i, is working closely with Twelve Cupcakes and FDAWU to support the affected workers.

This will include working with Twelve Cupcakes to provide job-matching support and career coaching.

The Tripartite Alliance for Dispute Management will also assist employees of Twelve Cupcakes who need to file a proof of debt for their salary and other employment claims with the liquidator. 

The CPF Board, in addition, will file a proof of debt with the liquidator to recover outstanding CPF contributions for September and October.

MOM also said it is investigating the company’s non-payment of salaries and other potential breaches of the Employment Act.