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

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Negotiations between ecommerce 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).

Lazada and FDAWU disclosed the move in a joint statement on February 4. However, they did not elaborate on details of the enhanced support package, citing confidentiality reasons. The training fund for affected FDAWU members will be set up by Lazada in collaboration with Employment and Employability Institute of the National Trades Union Congress (NTUC).

While negotiations for union members have concluded, FDAWU noted that it recognizes that there are non-unionized general branch members of the NTUC affected by the layoffs. The union said that the general branch members could expect something, but it would not be the same as those in the FDAWU. However, no timeline or specifics were 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 a MOM spokesperson.

This settlement comes about a month after the NTUC first voiced its disappointment over the layoffs on January 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.

The layoffs at Lazada 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 email fdawu@ntuc.org.sg to get details and instructions. They have until 5 p.m. on February 20 to contact FDAWU.

This story was republished with permission from The Business Times. It was moderately edited to reflect Tech in Asia’s editorial guidelines.

See also: What’s Lazada’s future after hefty job cuts? Insiders tell us