Retrenched non-union Lazada employees to receive S$1,200 for training support

RETRENCHED non-union Lazada employees have received a severance offer of S$1,200 negotiated by the National Trades Union Congress (NTUC).

The amount will be paid by Aug 31, provided these former employees join the Food, Drinks and Allied Workers Union (FDAWU), according to documents viewed by The Business Times.

FDAWU is an NTUC affiliate. Those who were already union members at the time of the retrenchment received a separate settlement earlier this year.

Sources familiar with the matter said affected employees with job ranks below that of vice-president were also offered an additional two weeks’ salary per year of service. Affected employees were briefed on this offer over two days – May 20 and 21 – in small batches. Briefings included both Lazada Singapore and Lazada South-east Asia employees.

NTUC secretary-general Ng Chee Meng said in a Facebook post on May 21 that FDAWU was “closing matters” with affected ex-employees.

FDAWU had engaged these ex-employees, gathered information and determined the optimal distribution approach, Ng said.

The union first reached out to affected non-union employees in January, after the company’s layoffs became public. Following the briefings, they were given till 11.59pm on May 22 to accept the offer. NTUC had in January said it was dissatisfied with Lazada’s retrenchment offer to union workers and a lack of engagement with the relevant union.

Subsequent engagements resulted in an improved but undisclosed enhanced support package and money for a training fund.

Negotiations for non-union workers between FDAWU and Lazada were still ongoing then, with no stated timeline for the discussions.

In response to queries from BT on Thursday, Julie Cheong, the president of FDAWU, said that both the union and Lazada had reached an “amicable settlement” which resulted in a support package for eligible affected union members, which will include an additional payout.

The payout will take into consideration members’ length of service with Lazada, their job grades and the validity of their membership with FDAWU.

As such, a uniform payout is not applicable, said Cheong who added that she could not share more details of the payout due to a confidentiality clause in an agreement signed between FDAWU and Lazada.

BT was unable to get in contact with Lazada.