As we approach the year end, we look back on the year and the numerous layoffs, retrenchments and labour cutting measures that Singapore companies have taken in 2024. It is particularly interesting to note the different levels of scrutiny and publicity each company was subject to. Most recently, Samsung Electronics, Dyson, One Championship and Love, Bonito have been reported to retrenched reductions in their workforce as part of cost cutting measures. In the beginning of the year, PropertyGuru and Yahoo both reduced its workforce, and just a couple months ago Shein, MoneyHero, Citibank, and Ninja Van held similar retrenchment exercises.
Generally, there is no way to tell whether these companies signed a collective bargaining agreement with any union. There is no search repository to obtain this information publicly. This is because unions in Singapore wish to allow the employer maximum privacy within which to negotiate their collective bargaining agreements (“CBA”) and/or memorandum of understandings (“MOU”).
When we compare the media’s response to the news of Dyson Samsung Electronics’ retrenchments, the headlines are quite different:
Dyson
- Singapore union dismayed by Dyson’s one-day notice of surprise layoff – The Straits Times, 2 October 2024
- Dyson retrenches workers in Singapore, gives union only one day’s notice – The Business Times, 1 October 2024
- Only one day’s notice: Dyson’s surprise layoff leaves Singaporean employees & union blindsided – Vulcan Post, 2 October 2024
Samsung Electronics
- Samsung to cut thousands of jobs, some in Singapore, amid struggles in AI market – The Straits Times, 2 October 2024
- Samsung’s Singapore staff not spared as it cuts thousands of jobs in global layoff – The Business times, 2 October 2024
- Samsung axes thousands of jobs in global layoff round, including Singaporean ones. Why now?
One of the key differences is the union’s reaction. The position seems to be that, if a private sector employer has signed a CBA or even a MOU, then the relevant union should be given ample notice of any intended retrenchments and have its feedback taken into consideration on the retrenchment package – even if the retrenched employees are not covered under the CBA or MOU.
Dyson is offering 1 month per year of service, outplacement services, Employment Assistance Payments and counselling services. Contrasting this retrenchment exercise with that conducted by Lazada in the beginning of the year offered staff a retrenchment package of two weeks’ pay for each year of service.
For Lazada, this was subsequently increased to either an additional two weeks’ pay for each year of service or an additional $1,200 settlement amount after negotiations between the Food, Drinks and Allied Workers Union and Lazada concluded. The applicability of the different enhanced support was dependent on the employee’s position within the company prior to retrenchment. It is currently unclear what the final landing point for Dyson will be, in terms of additional payments.
The unions strongly encourage employers to consult the union well in advance if layoffs or retrenchments are conducted. While it is not mandatory if the employees are not unionised, this stance is clear from NTUC’s response to Dyson’s one day notice of its intended retrenchment exercise. While union standard notice period is 1 months’ notice, employers should note that discussions and negotiations with the union will require ample time, and in our experience some of these negotiations can take months before a conclusion is met.
For more information on this article, please contact Jennifer Chih or Hannah Heng.
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