- Lazada and its union reached an agreement on an enhanced severance package for impacted members.
- Initial disappointment over layoffs turned into a spirit of partnership.
- Non-union employees face lower support levels than the negotiated union separation package.
E-commerce platform Lazada and the Food, Drinks, and Allied Workers Union (FDAWU) have agreed on an improved severance package for union members impacted by recent layoffs.
The agreement was facilitated through mediation with Singapore’s Ministry of Manpower.
An enhanced and dedicated training package
While exact details were not disclosed, the agreement includes both an enhanced support package and a dedicated training fund for affected FDAWU members.
The training fund aims to facilitate re-employment and will be established in collaboration with the Employment and Employability Institute of the National Trades Union Congress.
Disappointment turned into spirit of partnership
The conclusion of successful talks between Lazada management and FDAWU stands in contrast to initial disappointment voiced by the unions last month when layoffs were first announced. However, both sides now emphasize a spirit of partnership moving forward.
Lazada stated the layoffs were part of a broader business transformation initiative across multiple markets and roles.
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Lower level support
Impacted FDAWU members have until February 20th to contact the union and provide documentation to receive their negotiated separation packages.
Lazada stated that non-union employees may also expect support, but likely at a lower level than what was agreed for union members.
