3-10-2024 (SINGAPORE) The Ministry of Manpower (MOM) in Singapore has stepped in to mediate a labour dispute between consumer electronics giant Dyson and the United Workers of Electronics and Electrical Industries (UWEEI) union, following a controversial retrenchment exercise that caught many off guard.
The conflict arose when Dyson provided the labour union with merely one day’s notice before initiating layoffs on 1 October, affecting an undisclosed number of workers. This move has been met with strong criticism from union officials, who deem it “unacceptable” and detrimental to the welfare of affected employees.
Patrick Tay, UWEEI’s executive secretary, expressed profound disappointment with Dyson’s approach, stating, “This hasty action severely limits our ability to ensure a fair, responsible, and progressive retrenchment process.” Tay emphasised that more time for discussion would have allowed for better support for the impacted workers.
In response to the escalating situation, MOM confirmed it had received a request from UWEEI for a conciliation session with Dyson. The ministry promptly arranged meetings with both parties to “understand the concerns and explore an amicable resolution.”
MOM clarified that while Dyson is a unionised company, the retrenched professionals, managers, and executives (PMEs) fall outside the scope of the union’s collective representation. Consequently, the notice period for informing UWEEI is subject to negotiation.
The ministry further explained that the formula for computing retrenchment benefits for PMEs doesn’t necessarily align with that used for rank-and-file employees and is negotiable between the union and the company.
Tay highlighted the union’s ongoing struggle to obtain crucial information from Dyson regarding the affected workers and their job levels. He noted, “We’ve heard from some affected employees that they were instructed to keep details confidential, potentially jeopardising their retrenchment package.”
While the union believes the retrenchment package aligns with UWEEI’s norm of one month per year of service, the lack of transparency has raised concerns about potential caps or limitations.
In response to the situation, UWEEI has formed a task force to advise affected workers and assist in their job searches. Tay used this opportunity to call on all Dyson workers to join UWEEI, stating, “We stand behind you and want to better look after our members, especially our PMEs.”
MOM reaffirmed Singapore’s commitment to supporting companies like Dyson in their operations within the country while balancing worker protections. The ministry stated, “We will work with these companies, economic agencies, and NTUC to ensure that we remain both pro-worker and pro-growth.”
