'Deeply disappointed': NTUC says Lazada initiated retrenchment exercise without notifying union

The National Trades Union Congress (NTUC) and its affiliated union, the Food Drinks and Allied Workers Union (FDAWU) said they are "deeply disappointed" over Lazada's recent retrenchment exercise. 

In a statement released on Friday (Jan 5), the unions noted that Lazada initiated a retrenchment exercise between Jan 3 and Jan 4 without notifying and consulting the FDAWU. 

The e-commerce firm, which is unionised under FDAWU, laid off an undisclosed number of its Singapore staff on Jan 3. 

It added that the FDAWU has written in to Lazada decrying the e-commerce firm's "unacceptable" move. They have also escalated the matter to the Ministry of Manpower. 

In the statement, NTUC said that it "stands by" FDAWU and the affected workers, and emphasised that it is critical for companies to work together with their union to ensure that a "fair and equitable" process was carried out to safeguard the interests of the workers. 

"Companies must exhaust all other options before making the call to retrench employees. (NTUC) also appeals to companies to be considerate about the timing of such exercises and to avoid doing such exercises during festive periods, as far as possible," it said.

In their statement, NTUC said its Employment and Employability Institute will help FDAWU with the search for new employment opportunities for retrenched staff. 

Affected union members and employees can contact FDAWU on 6737-6088 during working hours or e-mail fdawu@ntuc.org.sg for assistance.

Retrenchment process 'unfair' and 'baffling': Lazada staff

On Wednesday, Lazada laid off an undisclosed number of its Singapore staff, reported CNA. 

Three employees who were retrenched told CNA that the retrenchment process was "unfair", "opaque" and "baffling". 

The process has also caused much anxiety and speculation among staff, said one of the employees, who wanted to remain anonymous. 

The employees claimed that some departments have had most of their manpower cut, with one department being reduced to four of five employees from the original 20 to 30. 

According to The Straits Times, Lazada had previously conducted a round of layoffs in October 2023. 

Responding to The Straits Times' queries, a spokesperson from Lazada said on Friday (Jan 5): "We are making proactive adjustments to transform our workforce, to better position ourselves for a more agile, streamlined way of working to meet future business needs."

However, they declined to reveal how many workers were retrenched in this exercise. 

"This transformation necessitates that we reassess our workforce requirements and operational structure to ensure Lazada is better positioned to future-proof our business and people," said the spokesperson. 

Lazada became a subsidiary of Alibaba Group Holding after the Chinese tech company acquired a stake in it in 2016 to expand its presence in South East Asia. 

After Alibaba's split into six main business units in March 2023, Lazada now operates under Alibaba International Digital Commerce (AIDC), which also includes e-commerce platforms Daraz and Trendyol, as well as online store AliExpress.

READ ALSO: Lazada axes Singapore staff amid speculation of upcoming IPO

claudiatan@asiaone.com