NTUC Brought Matter of Lazada’s Sudden Layoff to MOM; Expressed “Deep Disappointment” At How Layoff is Done

NTUC Criticises Lazada’s Sudden Layoffs During Festive Season, Expresses Disappointment in Handling

As many celebrate the festive season of the new year, a starkly different reality unfolds for others.

Over 700 individuals, according to reliable sources, have found themselves abruptly unemployed in just a week’s time.

This sudden change in fortunes stems from the unanticipated and silent layoffs at Lazada, a major player in the online shopping and selling arena, primarily operating in Southeast Asia.

This turn of events has notably disconcerted the National Trades Union Congress (NTUC).

New Year’s Unwelcome Surprise: Unemployment

Lazada’s prominence in Singapore is undeniable, especially evident when one considers that even National servicemen can purchase their Singapore Armed Forces (SAF) products via Lazada.

Following its acquisition by the Chinese tech behemoth Alibaba Group in 2016, Lazada became a significant subsidiary.

The retrenchment process at Lazada commenced on 3 Jan – or should I say started on 3 Jan – with an undisclosed number of Singapore staff being laid off.

Employees were summoned to one-on-one meetings with the human resources department, scheduled a day in advance, as reported by The Edge Singapore.

These meetings, predictably, were to inform them of their retrenchment, as confirmed by one of the laid-off Lazada employees to The Straits Times.

Departments across the organization were impacted.

Reason for Retrenchment: Aiming for a Brighter Future

In a statement to CNA, Lazada cited the need for proactive adjustments to transform their workforce.

This restructuring aims to foster a more agile and streamlined work environment, aligning with future business needs.

Yet, this rationale for the widespread job losses offers little solace.

The exact number of affected workers in Singapore and Southeast Asia remains undisclosed, as does information regarding any severance packages.

It was only reiterated that the retrenchment was a necessary strategy for aligning the workforce with operational requirements.

“Helping Ex-Lazada” Initiative

In response to these abrupt layoffs, a WhatsApp group, now comprising over 700 members from across Southeast Asia – including Malaysia, Indonesia, and Vietnam – has formed, as reported by The Straits Times.

Within this group, former Lazada employees are actively exchanging CVs and job opportunities.

CNBC reports that the layoffs had a pronounced impact, particularly on the Singapore office.

NTUC’s Response: Deep Disappointment

Lazada’s engagement with The National Trades Union Congress (NTUC) previously appeared promising.

On 22 July 2022, the company joined over 1,000 others in committing to collaborate with NTUC-affiliated unions.

This partnership was intended to upskill workers and redesign jobs for the future economy.

A Company Training Committee (CTC) was formed at Lazada’s Jalan Buroh warehouse in collaboration with the Food, Drinks and Allied Workers Union (FDAWU).

Despite these proactive steps towards technology adoption and workforce upskilling, a drastic change occurred this year.

NTUC and FDAWU have voiced “deep disappointment” regarding Lazada’s recent retrenchment exercise.

On 5 Jan, NTUC criticised Lazada for initiating layoffs without prior discussion with FDAWU, despite the company being unionised under FDAWU, in an official statement.

NTUC stressed the importance of engaging with unions to ensure a fair, transparent process that safeguards workers’ interests, particularly the Singaporean core.

This principle is underscored in NTUC’s Fair Retrenchment Framework [24 July 2020] and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

Moreover, NTUC emphasised that companies should consider the timing of such exercises, avoiding festive periods and exhausting all other options before resorting to retrenchment.

FDAWU has reached out to Lazada Singapore, deeming the action unacceptable, and has escalated the issue to the Ministry of Manpower (MOM).

NTUC, through its Employment and Employability Institute, is committed to assisting FDAWU in finding new job opportunities for the retrenched staff.