Lazada SG’s retrenched, non-union employees to receive $888 for training support

Photo credit: Lazada

Retrenched Lazada employees in Singapore who are not members of a local union have received a severance offer of S$1,200 (US$888). The payment was negotiated by the National Trades Union Congress (NTUC).

The amount will be paid by August 31. However, these former employees must first 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. These staff members were briefed on this offer over two days – May 20 and 21 – in small batches.

Briefings included both Lazada Singapore and Lazada Southeast Asia employees.

NTUC secretary-general Ng Chee Meng said in a Facebook post on May 21 that FDAWU was “closing matters” with the affected 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 until 11:59 PM on May 22 to accept the offer.

NTUC had said in January that 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.

BT has reached out to NTUC for comment. It was unable to get in contact with Lazada.

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

Currencies converted from Singapore dollar to US dollar: US$1 = S$1.35.

This story was republished with permission from The Business Times, which made the article available to its paying subscribers. It was moderately edited to reflect Tech in Asia’s editorial guidelines.