7-1-2024 (SINGAPORE) Lazada, the Alibaba Group-owned e-commerce platform, issued an apology for not consulting the union before the recent employee layoffs. In a joint statement on Saturday, the Food, Beverage, and Industry Workers Union (FDAWU) and the National Trades Union Congress revealed that Lazada has expressed regret for the oversight and committed to working closely with the FDAWU to prioritize the interests of the affected employees.
The union has accepted Lazada’s apology, and progress has been made in consultations regarding the layoffs. Lazada has assured full cooperation with the union, pledging to provide necessary information for fair handling of the layoffs. The impacted employees primarily include white-collar professionals, managers, and executives (PMEs).
Lazada Singapore, in a separate media statement, emphasized its respect for local labor laws and employee welfare. It highlighted ongoing collaboration with the Singapore government, NTUC, the Food and Beverage and Industry Workers’ Federation, and relevant agencies during the recent business transformation.
Concerns were raised about the severance benefits offered to laid-off employees. Lazada informed them of a compensation package equivalent to two weeks’ salary for every year of service. However, FDAWU deemed this unsatisfactory and is representing eligible recipients in negotiations with Lazada for additional benefits. The Ministry of Manpower will continue to facilitate discussions between the two parties.
