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Singapore’s Manpower Ministry engages Dyson over last-minute layoff notice to union

The Ministry of Manpower (MOM) has engaged with Dyson following the company’s one-day notice to a labour union regarding retrenchments. MOM emphasised the importance of early notification to unions as per the Tripartite Advisory on Managing Excess Manpower. It noted that while Dyson is unionised, the retrenched professionals, managers, and executives (PMEs) are not covered by the union’s collective representation.

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SINGAPORE: The Ministry of Manpower (MOM) has initiated talks with Dyson after the company gave just one day’s notice to a labour union about a retrenchment exercise.

The United Workers of Electronics and Electrical Industries (UWEEI) had earlier requested a conciliation session to address the issue.

According to MOM’s statement on 3 October, the ministry met with Dyson on 2 October and plans to meet with the UWEEI to facilitate an amicable solution.

The dispute arose after UWEEI’s executive secretary, Patrick Tay, voiced the union’s disappointment that it was notified of the retrenchment just a day before Dyson laid off an unspecified number of workers on 1 October.

Tay expressed concern that the short notice did not allow enough time for discussions to ensure a fair and progressive retrenchment process.

He also highlighted that more time would have enabled better support for the affected employees.

According to MOM, under the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, unionised companies should give unions early notice when informing employees of retrenchments.

However, while Dyson is unionised, the professionals, managers, and executives (PMEs) who were laid off are not covered by the union’s collective representation.

“Hence the period of notice to inform UWEEI is negotiable,” MOM said.

However, MOM acknowledged that insufficient notice was given in this instance and stated its intent to work with both parties to improve communication going forward.

The Ministry also emphasised that the formula for calculating retrenchment benefits for PMEs does not necessarily have to follow the same criteria applied to rank-and-file workers.

The specific terms of such benefits are subject to negotiation between the union and the company, a position that has been agreed upon within Singapore’s tripartite framework.

MOM reaffirmed that it would mediate the issue if needed.

In its 3 October statement, MOM reiterated Singapore’s commitment to supporting businesses like Dyson that choose to invest in the country.

“We will work with these companies, economic agencies and NTUC to ensure that we remain both pro-worker and pro-growth.”

Mr Tay, who is also a Member of Parliament from ruling People’s Action Party (PAP), in an video message posted on UWEEI’s official Facebook page, urged Dyson executives affected by the retrenchment to seek assistance from the union in ensuring that their benefits are fair.

However, he noted that Dyson has not shared crucial details, such as the job levels of those impacted, which complicates the union’s efforts.

Tay explained that some affected workers had been instructed to keep their retrenchment packages confidential or risk losing them, further adding to the union’s concerns.

Although the union believes the package aligns with UWEEI’s standard of one month’s salary per year of service, Tay stated that uncertainty remains over whether the package is capped.

“That is why we are concerned that we have not received more information from Dyson on who the affected workers are or their job levels as Section 30A of the Industrial Relations Act also allows UWEEI to represent executives individually on retrenchment benefits.”

In response to the ongoing situation, UWEEI has established a task force to provide guidance to the retrenched employees, particularly in terms of job searches.

Tay also issued a public call for Dyson employees, especially PMEs, to join UWEEI so the union could better support them during such retrenchment exercises.

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