NTUC, 3 affiliated unions slam 'unfair' layoffs at P&W-SIA Engineering joint venture

Singapore

THREE unions and the National Trades Union Congress (NTUC) have publicly censured and stepped in to halt "unfair" layoffs that reportedly affected more than 100 workers at aircraft maintenance, repair and overhaul (MRO) company Eagle Services Asia.

On July 22, the management of Eagle, which is a 51:49 joint venture between American aerospace manufacturer Pratt & Whitney (P&W) and mainboard-listed SIA Engineering Company (SIAEC), had released specific employees before finalising the name list with the unions.

This was in spite of negotiations having been ongoing since early July with the Air Transport Executive Staff Union (AESU), the SIA Engineering Company Engineers and Executives Union (SEEU), and the Singapore Airlines Staff Union (SIASU).

When the unions were later alerted that Eagle had gone ahead to start informing employees that they may be retrenched, NTUC and the unions stepped in immediately to stop any further action by the company until an agreement could be reached.

NTUC, AESU, SEEU and SIASU said in a statement on Wednesday: "The lack of transparency and disregard for negotiations with the unions is not acceptable, and is not how a retrenchment exercise should be conducted."

Lianhe Wanbao reported this week that 144 employees were axed within three days in two rounds of layoffs held on July 22 and 24. The company notified 31 staff on July 22, followed by 113 on July 24.

The Chinese daily reported that affected employees found out they were on the name list only when they arrived at work, when some were told to pack up and leave the premises immediately; others were denied entry.

Eagle did not explain the selection criteria to the staff, some of whom had been with the company for decades, the newspaper reported.

NTUC secretary-general Ng Chee Meng had earlier authorised the unions to prepare for legal industrial action, should it become necessary to persuade management not to take unilateral decisions. The unions conducted a secret ballot, which received "overwhelming" support from their members, Mr Ng said in a Facebook post on Wednesday.

Eagle's management has since taken advice from NTUC and the unions, corrected the retrenchment process and "accorded due respect" to employee rights, the joint statement said.

NTUC and the unions also said they have secured better outcomes for the affected staff after talks with the management. For instance, the unions and the management jointly reviewed the selection criteria and names of employees to be retrenched, to ensure that the "Singaporean core" is safeguarded as far as possible, while also giving due consideration to foreign workers.

NTUC said that prior to the negotiation, 56 per cent of the 144 employees affected were Singaporeans, and the remaining 44 per cent, foreign workers. Post-negotiation, the proportion of Singaporeans affected was adjusted to 44 per cent, while that of foreign workers affected rose to 56 per cent.

The absolute number of staff to be retrenched is not known; Eagle employs about 800 staff.

NTUC deputy secretary-general Cham Hui Fong said: "The unions hope the management can rebuild the confidence and morale of the workers to ensure we can work together and bring the company forward, so that we can go through the economic crisis together."

The unions also negotiated for a training grant for all affected union members; this is on top of the fair-compensation package Eagle had offered to the axed workers.

NTUC's Employment and Employability Institute were on-site to provide support and match retrenched employees to job placement opportunities. Union leaders were also present to help those affected.

A spokesperson from the Ministry of Manpower (MOM) said the ministry was aware that Eagle had been in discussion with the unions to ensure the retrenchments were carried out fairly.

"It was unfortunate that ESA (Eagle Services Asia) decided to take certain unilateral decisions without consulting both MOM and the unions while discussions were still ongoing. This is not aligned with our Tripartite Advisory, where we tell employers to consult their unions early with a view to resolve disputes amicably."

The spokesperson added that the ministry is glad Eagle took steps to rectify its earlier decisions.

In an e-mailed statement to The Business Times, P&W said the decision to reduce the number of employees comes after implementing many cost-containment measures, including a temporary salary reduction and short work week, cancelled merit increases, hiring freezes and discretionary spending cuts.

NTUC reiterated that while retrenchments may be inevitable, companies must exhaust all other options before laying off workers.

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 and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

In a press briefing on Wednesday to release preliminary employment data, Manpower Minister Josephine Teo said companies should not act on retrenchment exercises prematurely while talks with unions are ongoing.

"The way in which this dreadful process is handled is critical. There has to be an understanding of the pressure that the workers face; there has to be understanding that we need to accord them with dignity and respect," she said.

Eagle is a unionised company under the three unions representing different groups of employees, including administrative officers, engineers and technicians.

SIAEC shares fell S$0.05 or 2.7 per cent to close at S$1.79 on Wednesday.