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Questions were raised in Parliament on five key issues, including early notification to the union; retrenchment benefits, and mandatory retrenchment notification.
Earlier this month, Dyson conducted a retrenchment exercise that raised concerns from Singapore's United Workers of Electronics and Electrical Industries (UWEEI), which was only notified a day prior to the affected employees being informed. Since then, the Ministry of Manpower (MOM) has affirmed that it has been actively involved in this issue, and has engaged both parties, who have agreed to cooperate in the spirit of tripartism.
Most recently in a parliamentary session, Members of Parliament have also raised questions on five key issues regarding the matter:
- early notification to the union
- retrenchment benefits
- mandatory retrenchment notification
- action that can be taken against non-compliant companies
- how Singapore balances being both pro-business and pro-worker.
Senior Minister of State for Manpower Zaqy Mohamad has addressed these areas of query.
Early notification to the union
Citing the Tripartite Advisory on Managing Excess Manpower or TAMEM, if the company is unionised, it should provide advance notice to the unions. Where provided in the collective agreement, the norm is to notify the union a month before notifying the employees.
SMS Zaqy stated: "We understand that all the retrenched employees from Dyson are PMEs — professionals, managers or executives — who are not unionised. Thus, they are not within the scope of the union’s collective representation and the period of notice is therefore negotiable.
In this regard, Dyson's recent retrenchment exercise was in accordance with Singapore's laws and tripartite advisories as the PMEs were not under the collective agreement.
"At the same time, the spirit of tripartite engagements is built on trust and a shared understanding between the employer and the union. It is good practice for companies to do so, as this builds trust between the employer and the union."
Dyson has also explained to UWEEI the reasons for not being able to give more advance notice to the union. SMS Zaqy emphasised the key role of communication in managing the concerns of the affected employees, while also being cognisant of the constraints of the business.
In this respect, both parties have signified their commitment to continue working together in the tripartite spirit to support both the needs of the workers and businesses.
"Ultimately, it is also important that all tripartite partners focus on the welfare of the affected workers, so that we can all work together to help them during this difficult period of disruption."
Retrenchment benefits
According to the Tripartite Advisory, the amount of retrenchment benefits available is determined by what is provided for in the collective agreement, otherwise it will be negotiated.
SMS Zaqy noted that the current norm allocates between two weeks to one month salary per year of service, and the retrenchment payments depend on the financial position of the company and industry norms. Based on tripartite guidelines, the retrenchment benefits for PMEs can be calculated differently from that of a rank and file employee.
While there is no requirement to do so and the affected workers are not covered by collective agreement, Dyson has offered retrenchment benefits for its PMEs that aligns with the tripartite advisory.
To note only employees that have served the company for at least two years are eligible for retrenchment benefits; in this regard, Dyson has provided affected employees who have served for less than this a payment as well.
Lastly, Dyson will also provide after-care support, outplacement assistance, and access to career coaching and counselling to the affected employees.
While members have also asked about the salaries of the affected employees, MOM will not disclose salary details as it remains confidential to the employee and company per its policy.
Mandatory retrenchment notification
Prior to the exercise, Dyson submitted its mandatory retrenchment notification (MRN) to MOM on time — that is, within five working days of notifying the affected employees.
"This has enabled the Taskforce for Responsible Retrenchment and Employment Facilitation (RTF) to work with Dyson to provide career facilitation services and information kits to the affected employees."
Providing more information, SMS Zaqy shared that about 30% of MRNs from 2019 to March 2024 were submitted late after five working days of notifying the affected employees. Among the late submissions, around half were submitted before the retrenchment date of the affected employees.
This means that the RTF is still able to offer employment assistance to affected employees in a timely manner.
Currently, employers with less than 10 employees are exempted from submitting MRNs, which was agreed upon having taken into consideration the administrative burden for smaller companies to submit MRNs. Nonetheless, the Ministry encourages all employers to notify MOM of any retrenchment exercise early, so that support can be extended to the affected employees.
On whether MRNs should be submitted earlier, SMS Zaqy recognises the need to strike a balance between allowing employers sufficient time to finalise their decisions, while enabling the prompt provision of career facilitation services and programmes to affected employees. Employers may need more time to decide on how they want to restructure and transform their business and collate details required on the affected workers for MRN submission.
Action towards non-compliant companies
Per status quo, most employers today are noted to comply retrenchment regulations.
"If an employer does not follow the tripartite advisory, the Tripartite Alliance for Fair and Progressive Employment Practices, or TAFEP, will engage the employer to adhere to it."
SMS Zaqy affirmed that MOM will investigate unfair employment practices and take enforcement action if needed.
"Most employers are cooperative when approached by TAFEP or MOM. This shows that our tripartite guidelines and advisories are working well without the need for additional penalties, which may negatively affect the wider business environment in Singapore."
Ensuring that Singapore is pro-worker and pro-business
Lastly, SMS Zaqy addressed concerns on how Singapore can continue to be pro-business, while safeguarding the welfare of workers.
"We need to constantly maintain a fine and delicate balance in preserving our economic competitiveness, which in turn results in more job opportunities and good wages for our workers."
He thus emphasises the importance of striking a balance between protecting workers and providing flexibility for businesses.
"If we do not get this balance right, we may think that we are protecting our workers in the short term. But in the longer term, the good jobs for our workers may be reduced as we become a less attractive place for companies to invest in and firms may choose to site the operations or outsource jobs elsewhere."
At the same time, SMS Zaqy assured members "We do not wait for retrenchments to happen before we help workers."
To this end, the government has worked closely with tripartite partners, the unions, the employers, to develop an ecosystem that supports workers in their career journey, even during disruptions.
Singapore will also continue to help workers in building career resilience through picking up industry-relevant skillsets, which will allow workers to find new and better opportunities, even in the event of a retrenchment.
Currently, affected workers are receive assistance through employment facilitation, such as career coaching. In Q2 2024, over half of all retrenched residents were able to secure jobs within six months of being retrenched.
In concluding his response, SMS Zaqy asserts: "it is not easy to manage retrenchment issues".
"We need to continue achieving the right balance between the interests of the businesses, while ensuring that our workers remain protected and well supported during this difficult period of disruption. "
Lead image / Dyson
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