Food Packaging Company Tetra Pak Closing S’pore Factory, Affecting 300 Workers


Advertisements
 

Following a layoff in e-commerce platform Lazada which affected about 100 employees, yet another company in Singapore is set to shutter its facility.

Tetra Pak, branded as a global leader in packaging solutions, has announced its decision to consolidate its packaging material production in Singapore. By closing its factory in Jurong, they impact approximately 300 Singapore-based employees, predominantly in manufacturing roles.

In a statement revealed on 27 February 2024, it is revealed that the move is part of Tetra Pak’s strategy to “optimise its global manufacturing footprint, serve customers better and adapt to the changing market dynamics”.

The change will take place over the course of 12 months

Who are Tetra Pak?

You may not have heard of the Tetra Pak, but you most definitely have held their products in your hand while on your usual supermarket runs.

Working with familiar household food and drink brands such as Pokka, Yeo’s, F&N and Nestlé, Tetra Pak is a prominent company in food processing and packaging solutions and has been present in Singapore since 1958.

According to their website, the company is dedicated to providing safe, innovative and environmentally sound products to meet the needs of hundreds of millions of people in more than 160 countries.

Beginning its operations in 1982, Tetra Pak’s Jurong factory has been instrumental in supplying customers in Singapore and serving as an export base.

However, over the next 12 months, Tetra Pak will transition production from Jurong to its other factories in the region.

Despite this shift, said Tetra Pak in their statement, Singapore will remain a key strategic hub for Tetra Pak.

The company will maintain essential business functions in Singapore, including business management, project centres, IT, human resources, finance, and marketing.

Support Provided for Affected Employees

Though approximately 300 employees will be impacted by the closure of the Jurong facility, Tetra Pak is committed to supporting these employees above and beyond statutory requirements, ensuring they are treated with respect and care.

Tetra Pak had reportedly notified the impacted employees on Tuesday, 27 February, and arranged discussions throughout the week to provide them with new opportunities for career transition or outplacement assistance.

The Food, Drinks and Allied Workers Union (FDAWU), the union representing Tetra Pak workers in Singapore, stated that the company has been collaborating closely with them to aid affected workers. These employees will receive retrenchment support packages consistent with union standards.

FDAWU highlighted that the union and Tetra Pak have maintained a positive and longstanding labour-management relationship since 1993. They emphasised that through discussions, they were able to enhance retrenchment support packages for affected workers.

According to FDAWU, this job assistance support will offer opportunities for career coaching, job interviews, and on-site training to enhance the skill sets of impacted workers.


Advertisements
 

FDAWU and Tetra Pak will be utilising the NTUC Training and Placement Ecosystem, including NTUC’s Employment and Employability Institute (e2i) and NTUC LearningHub, with support from Workforce Singapore to arrange a job fair with various companies, actively connecting affected workers with potential employers.

Tetra Pak also stated that they will collaborate with employees interested in applying for alternative positions within the company, either locally or within the region.

Tetra Pak says in their statement, “The company sincerely values the dedication and loyalty of its employees and is grateful to them for being an integral part of its success story in Singapore.”

Despite the closure of the Jurong factory, Singapore will continue to play a vital role in Tetra Pak’s business management. The company plans to relocate its corporate office to a new, larger location in Singapore by the end of the year, accommodating up to 250 employees.