Singapore trade union criticises Lazada’s ‘unacceptable’ move to cut jobs in a haste

“The National Trades Union Congress (NTUC) and our affiliated union, Food Drinks and Allied Workers Union (FDAWU) are deeply disappointed that Lazada has initiated a retrenchment exercise without notifying and consulting FDAWU, given that Lazada is unionised under FDAWU,” said NTUC in a statement.

The FDAWU has written to Lazada stating that such a move is “unacceptable”, and that the matter has been escalated to the Ministry of Manpower (MOM).

CNA understands that the lay-offs – which began on Wednesday morning – are ongoing. Employees said some people were left in tears by the news and were baffled by the sudden announcement.

A Lazada spokesperson said on Wednesday evening that the company is “making proactive adjustments to transform our workforce”, but did not answer questions about the extent of the lay-offs and the reasons for the retrenchments.

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CNA has contacted Lazada and MOM for their responses to NTUC’s statement.

“NTUC stands by FDAWU and affected workers. We too are extremely disappointed in this move by Lazada,” said the statement.

“NTUC would like to reiterate that it is critical for companies to work with their union to ensure that a fair and equitable process was carried out to safeguard the interests of all workers, especially our Singaporean core.”

The union said that while retrenchments “may be inevitable”, it should only be used as a last resort.

Companies must exhaust all other options before making the call to retrench employees, it added.

“It also appeals to companies to be considerate about the timing of such exercises and to avoid doing such exercises during festive periods, as far as possible.”

Firms who are retrenching workers must “ensure openness, transparency, and consultation with unions and workers”, NTUC said.

They should observe the guiding principles in NTUC’s Fair Retrenchment Framework and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

“NTUC would like to assure affected workers that you are our priority,” it said.

It advised affected workers to approach FDAWU for assistance, who will enlist the help of NTUC’s e2i to assist in the search for new employment opportunities.

Lazada, founded in 2012 and headquartered in Singapore, is one of Southeast Asia’s largest e-commerce platforms. It was acquired by Alibaba, owner of the South China Morning Post, in 2016.