28-2-2024 (SNGAPORE) Tetra Pak, a leading packaging materials company, has announced plans to consolidate its packaging material production in Singapore into other factories within the region over the next 12 months. This decision comes as a response to changing market dynamics. The company has assured that it will be working closely with the Food, Drinks and Allied Workers Union (FDAWU), which represents Tetra Pak workers in Singapore, to provide support for affected employees who will receive retrenchment packages in accordance with unionized norms.
The FDAWU highlighted the longstanding positive labor-management relationship between the union and Tetra Pak, which dates back to 1993. Through fruitful discussions, both parties were able to reach an agreement on enhanced retrenchment support packages for the affected workers.
In response to inquiries from The Straits Times, Tetra Pak emphasized its commitment to the Singapore market, stating that it will maintain an office in the country to handle essential functions such as business management, human resources, and marketing. A Tetra Pak spokesperson stated that the company will be relocating to a new, well-connected, and easily accessible location in Singapore, reaffirming that the country will continue to host one of their largest offices in the Asia-Pacific region, with a capacity of accommodating up to 250 employees.
Acknowledging the challenges faced by its employees, Tetra Pak assured that every option has been thoroughly considered to create the best social package for them. The company will provide further details and specific package terms based on individual roles and positions through discussions between each employee and the HR team.
Tetra Pak’s Packaging Materials factory in Jurong, which commenced operations in 1982, has been supplying customers in Singapore and serving as an export base. According to Tetra Pak’s Singapore website, the company’s business partners include both local and international players such as Yeo’s, Ayam Brand, Pokka, and Nestle.
The affected employees were notified on February 27, and Tetra Pak has scheduled discussions throughout the week to present new opportunities or provide outplacement support. The company expressed its commitment to support all impacted employees by going above and beyond the applicable statutory requirements, ensuring that they are treated with utmost respect and care, aligning with the company’s values.
FDAWU’s general secretary, Tan Hock Soon, praised the close working relationship between the union and Tetra Pak, noting that the company provided early notification of the consolidation exercise. The union will offer job assistance support to the affected workers, leveraging its network of unionized companies and collaborating with organizations such as NTUC Training and Placement Ecosystem, which includes NTUC’s Employment and Employability Institute (e2i) and NTUC LearningHub, with support from Workforce Singapore.
FDAWU also revealed plans to organize a job fair in collaboration with Tetra Pak, facilitating interviews with potential employers and actively connecting affected workers with job opportunities. The union emphasized that this job assistance support will include career coaching, job interviews, and on-site training to enhance the skill sets of the affected workers, making them well-prepared for new employment opportunities.
