SINGAPORE: Lazada employees who were retrenched in January will receive additional monetary support following negotiations with the union, but some remain unhappy about the differentiated payouts and the way the issue was handled.
Some former employees, mostly in lower-ranking positions, will receive two additional weeks of salary for each year of service. Others who were considered higher ranked would receive a S$1,200 "settlement".
Those who spoke to CNA agreed to do so on the condition of anonymity and their names have been changed for this story.
Lazada had been criticised over the layoffs, with former employees describing the process as "unfair", "opaque" and "baffling". The union representing Lazada's workers had also expressed disappointment, saying it was not notified or consulted.
The following month, Lazada Singapore and the Food, Drinks and Allied Workers Union (FDAWU) said in a joint statement that they had reached "an amicable settlement" in which eligible union members would get "an enhanced support package".
Four months after being retrenched, some former employees finally received calls to meet union representatives on Monday (May 20) to hear about the enhanced packages.
Among them were Rachel and Tricia, mid-ranking employees with Lazada Singapore and Lazada Southeast Asia respectively, who said it had been weeks of back and forth with union staff members asking for different documents each time.
Tricia told CNA that the union explained at Monday's meeting that the eligibility for the new retrenchment package would take into account their job rank, tenure of union membership and how long they had been at Lazada.
Lazada Singapore is a unionised entity, while Lazada Southeast Asia is not, prompting worries about whether former employees of the latter would receive equal treatment.
“They didn’t really say where they draw the line,” said Tricia, who signed up to be a union member shortly after getting retrenched.
Rachel and Tricia were both told that they would receive two additional weeks for each year of service, bringing their total compensation to one month of salary for each year of service.
The drawn-out wait for details had frustrated many former employees, Tricia said. “But at the same time, I think at least it gives a conclusion, so it’s quite a relief and a nice surprise for some of us,” she added.
“I’m satisfied because this amount is what we should be getting as a norm,” said Rachel, who joined the union years ago.
“For us to get two weeks, it felt like we were underpaid,” she continued, adding that others in the e-commerce industry who got retrenched mostly received about one month’s salary for each year of service.
Others in the same situation as Rachel and Tricia felt compelled to update a group chat on Monday about what they saw as a positive outcome.
The group chat, with more than 100 affected employees, was created right after the retrenchment exercise and was a source of support for those affected by the cuts, who would share updates over the months.
Just as people were looking forward to being officially told about the same compensation package, some were instead told that they would be contacted about a "training grant".
So when Ryan, a former mid-ranking employee in his 30s, received a call the next day informing him that he would be getting an additional sum of S$1,200, he was shocked.
It was a far cry from what he was expecting.
It was also different from the two additional weeks of salary for each year of service that people had been looking forward to, former employees said, noting that rumours had spread before the news was confirmed.
“If from the beginning, we knew upfront that the amount is going to be that little, then we would be a little bit less disappointed,” Ryan told CNA.
“They (the union) asked us to send payslips, they asked us to send bank statements, they asked us to send our employment contracts, a lot of confidential documents. And that’s also the reason why we think it’s going to be a huge amount of money,” he added.
Gavin, who is in his 50s and earned a five-figure sum in his senior position, said the S$1,200 was a humiliation, describing it as “ridiculous” and a “slap in the face”.
“Don’t you think that the more junior people can find jobs easily, while the higher grade people who are perhaps also older, are going to have a little bit more difficulties, and also have more to feed?” he continued.
The union did not consult employees about their needs before heading into negotiations for a better retrenchment package, Gavin added.
“It’s not that I’m not happy with the money, I’m not happy with the outcome and how it was handled, first by Lazada and second by the union,” he said.
In the contract seen by CNA, employees like Ryan and Gavin were told that the money would only be credited to union members who joined FDAWU before Feb 20, 2024, who have paid their full membership fees.
The “settlement” will be “conveyed” to the employees no later than Aug 31, 2024, the contract read, highlighting that “no further claims” can be made on this matter after it has been signed.
The contract also asked that the employees keep the terms of the “settlement” confidential.
The varied retrenchment packages are in line with FDAWU’s most recent statement – the union confirmed on Thursday evening that the employees’ length of service with Lazada, job grades and the validity of their union membership would be factors taken into consideration for their respective payouts.
“This implies that a uniform payout is not applicable,” said the union's president Julie Cheong.
FDAWU cannot share more details about the payout due to a confidentiality clause in an agreement signed between the union and Lazada Singapore, she added.
Former employees told CNA that those who received the additional two weeks seemed to be mostly junior employees, with job titles of manager and below. Senior managers and above seemed to mostly receive the S$1,200 package.
Rachel was surprised to find out that there was another S$1,200 package offered to other employees, adding that many of them said they felt “very humiliated” by the small amount.
Many former employees who will be receiving the additional S$1,200 support package are in high positions, and the figure is less than 10 per cent of their typical monthly salary, she said.
According to Tricia, employees who are manager-level and below serve a one-month notice period, while those who are senior managers and above serve a two-month notice period. This could be another reason for the distinction between the support packages, she added.
“In a sense, maybe they got additional benefits from there,” said Tricia, adding that senior managers and above are also more likely to hold restricted stock units or other modes of compensation.
Ryan said he understood why the union prioritised individuals with lower salaries, adding that this is “totally fine”.
“It’s just that they should at least give some information on how they are selected – what criteria (they used), why is it S$1,200 instead of S$1,000 or S$50?” he said, adding that the lack of transparency also fuelled rumours, which in turn led to heightened expectations.
“Why do you need to make it confidential? Why do you try to hide all the information, make people blur like sotong for nothing? That’s what makes us angry.”
After the retrenchment exercise, the union urged affected employees to become members, Ryan said, noting that membership costs more than S$100 per year.
“‘Join the union, you’re going to be protected.’ This is not how they should protect us,” Ryan said, suggesting that powers to impose a fine or punish errant companies would be more useful.
The union’s handling of Lazada’s less-than-ideal layoff process would not serve as a warning to other companies, he added.
“It does not help to prevent other companies from treating their employees badly (during a layoff).”
Continue reading...
Some former employees, mostly in lower-ranking positions, will receive two additional weeks of salary for each year of service. Others who were considered higher ranked would receive a S$1,200 "settlement".
Those who spoke to CNA agreed to do so on the condition of anonymity and their names have been changed for this story.
Lazada had been criticised over the layoffs, with former employees describing the process as "unfair", "opaque" and "baffling". The union representing Lazada's workers had also expressed disappointment, saying it was not notified or consulted.
The following month, Lazada Singapore and the Food, Drinks and Allied Workers Union (FDAWU) said in a joint statement that they had reached "an amicable settlement" in which eligible union members would get "an enhanced support package".
Four months after being retrenched, some former employees finally received calls to meet union representatives on Monday (May 20) to hear about the enhanced packages.
Among them were Rachel and Tricia, mid-ranking employees with Lazada Singapore and Lazada Southeast Asia respectively, who said it had been weeks of back and forth with union staff members asking for different documents each time.
Tricia told CNA that the union explained at Monday's meeting that the eligibility for the new retrenchment package would take into account their job rank, tenure of union membership and how long they had been at Lazada.
Lazada Singapore is a unionised entity, while Lazada Southeast Asia is not, prompting worries about whether former employees of the latter would receive equal treatment.
“They didn’t really say where they draw the line,” said Tricia, who signed up to be a union member shortly after getting retrenched.
Rachel and Tricia were both told that they would receive two additional weeks for each year of service, bringing their total compensation to one month of salary for each year of service.
The drawn-out wait for details had frustrated many former employees, Tricia said. “But at the same time, I think at least it gives a conclusion, so it’s quite a relief and a nice surprise for some of us,” she added.
“I’m satisfied because this amount is what we should be getting as a norm,” said Rachel, who joined the union years ago.
“For us to get two weeks, it felt like we were underpaid,” she continued, adding that others in the e-commerce industry who got retrenched mostly received about one month’s salary for each year of service.
Related:
S$1,200 PAYOUT "RIDICULOUS"
Others in the same situation as Rachel and Tricia felt compelled to update a group chat on Monday about what they saw as a positive outcome.
The group chat, with more than 100 affected employees, was created right after the retrenchment exercise and was a source of support for those affected by the cuts, who would share updates over the months.
Just as people were looking forward to being officially told about the same compensation package, some were instead told that they would be contacted about a "training grant".
So when Ryan, a former mid-ranking employee in his 30s, received a call the next day informing him that he would be getting an additional sum of S$1,200, he was shocked.
It was a far cry from what he was expecting.
It was also different from the two additional weeks of salary for each year of service that people had been looking forward to, former employees said, noting that rumours had spread before the news was confirmed.
“If from the beginning, we knew upfront that the amount is going to be that little, then we would be a little bit less disappointed,” Ryan told CNA.
“They (the union) asked us to send payslips, they asked us to send bank statements, they asked us to send our employment contracts, a lot of confidential documents. And that’s also the reason why we think it’s going to be a huge amount of money,” he added.
Gavin, who is in his 50s and earned a five-figure sum in his senior position, said the S$1,200 was a humiliation, describing it as “ridiculous” and a “slap in the face”.
“Don’t you think that the more junior people can find jobs easily, while the higher grade people who are perhaps also older, are going to have a little bit more difficulties, and also have more to feed?” he continued.
The union did not consult employees about their needs before heading into negotiations for a better retrenchment package, Gavin added.
“It’s not that I’m not happy with the money, I’m not happy with the outcome and how it was handled, first by Lazada and second by the union,” he said.
In the contract seen by CNA, employees like Ryan and Gavin were told that the money would only be credited to union members who joined FDAWU before Feb 20, 2024, who have paid their full membership fees.
The “settlement” will be “conveyed” to the employees no later than Aug 31, 2024, the contract read, highlighting that “no further claims” can be made on this matter after it has been signed.
The contract also asked that the employees keep the terms of the “settlement” confidential.
The varied retrenchment packages are in line with FDAWU’s most recent statement – the union confirmed on Thursday evening that the employees’ length of service with Lazada, job grades and the validity of their union membership would be factors taken into consideration for their respective payouts.
“This implies that a uniform payout is not applicable,” said the union's president Julie Cheong.
FDAWU cannot share more details about the payout due to a confidentiality clause in an agreement signed between the union and Lazada Singapore, she added.
Related:
"BLUR LIKE SOTONG FOR NOTHING"
Former employees told CNA that those who received the additional two weeks seemed to be mostly junior employees, with job titles of manager and below. Senior managers and above seemed to mostly receive the S$1,200 package.
Rachel was surprised to find out that there was another S$1,200 package offered to other employees, adding that many of them said they felt “very humiliated” by the small amount.
Many former employees who will be receiving the additional S$1,200 support package are in high positions, and the figure is less than 10 per cent of their typical monthly salary, she said.
According to Tricia, employees who are manager-level and below serve a one-month notice period, while those who are senior managers and above serve a two-month notice period. This could be another reason for the distinction between the support packages, she added.
“In a sense, maybe they got additional benefits from there,” said Tricia, adding that senior managers and above are also more likely to hold restricted stock units or other modes of compensation.
Ryan said he understood why the union prioritised individuals with lower salaries, adding that this is “totally fine”.
“It’s just that they should at least give some information on how they are selected – what criteria (they used), why is it S$1,200 instead of S$1,000 or S$50?” he said, adding that the lack of transparency also fuelled rumours, which in turn led to heightened expectations.
“Why do you need to make it confidential? Why do you try to hide all the information, make people blur like sotong for nothing? That’s what makes us angry.”
After the retrenchment exercise, the union urged affected employees to become members, Ryan said, noting that membership costs more than S$100 per year.
“‘Join the union, you’re going to be protected.’ This is not how they should protect us,” Ryan said, suggesting that powers to impose a fine or punish errant companies would be more useful.
The union’s handling of Lazada’s less-than-ideal layoff process would not serve as a warning to other companies, he added.
“It does not help to prevent other companies from treating their employees badly (during a layoff).”
Continue reading...