Zaqy Mohamad says Dyson's retrenchment exercise adheres to laws and tripartite advisories

SINGAPORE: On 15 October, Senior Minister of State for Manpower Zaqy Mohamad informed Parliament that Dyson conducted its recent retrenchment exercise in accordance with existing laws and tripartite advisories, noting that the professional, managerial, and executive (PME) employees involved were not covered by the collective agreement. He explained that the company had provided reasons for its inability to offer more advance notice to the union, noting that businesses often face their own constraints. Mr Zaqy was responding to questions from Members of Parliament regarding retrenchment practices and the advance notification of unions, which followed a recent layoff at consumer appliances firm Dyson. The United Workers of Electronics & Electrical Industries (UWEEI) reported that it received only one day's notice and subsequently escalated the matter to the Ministry of Manpower (MOM). As a unionised company, Dyson is subject to these union regulations. In his remarks, Mr Zaqy emphasized that the ministry has engaged both parties and they have agreed to collaborate "in the spirit of tripartism." He contrasted this with other countries where unions and employers often have more confrontational relationships, resulting in a more rigid labour market. Such dynamics can deter investment, as countries must balance employee protections with business flexibility to remain attractive to companies. "If we do not get the 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," he said. Mr Zaqy stressed the importance of providing businesses with the flexibility to respond to market conditions and adapt their business models to preserve Singapore's economic competitiveness. He clarified that the notice period given to the union in Dyson's case was negotiable because the retrenched employees were not unionised; typically, for unionised employees, the norm is to notify the union a month prior to informing affected employees. He also mentioned that the company submitted its mandatory retrenchment notification to MOM within the required five working days after notifying the affected employees. Additionally, Dyson provided retrenchment benefits to employees who had been with the company for less than two years, despite their ineligibility based on local advisories. Mr Zaqy highlighted the critical role of trust between unions and employers, stating that this trust must be cultivated over time. He urged companies to appreciate Singapore’s tripartite culture and collaborate closely with unions. Managing retrenchment challenges, he acknowledged, is complex. "We need to continue achieving the right balance between the interests of businesses and ensuring that our workers remain protected and well supported during this difficult period of disruption," he concluded.

MP questions the effectiveness of current protocols in protecting workers' interests amidst recent retrenchment exercises

Mr Yip Hon Weng, the Member of Parliament for Yio Chu Kang SMC, expressed concerns about the effectiveness of existing protocols in safeguarding workers’ interests in light of recent retrenchment exercises. He questioned how MOM assesses this effectiveness beyond merely the timing of notifications and called for greater transparency from companies in their communication with employees and unions during the retrenchment process. Additionally, Mr Yip proposed the incorporation of more structured dialogues between companies, employees, and unions as part of tripartite guidelines and best practices. In response, Mr Zaqy emphasised the need for effective ground-level support through various schemes aimed at protecting workers. He mentioned the Retrenchment Task Force, which aims to mobilize resources from the National Trades Union Congress (NTUC) and Workforce Singapore to facilitate assistance. Additionally, he pointed out that the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) is available for workers who experience discriminatory practices, and the Tripartite Alliance for Dispute Management (TADM) handles contract disputes and retrenchment benefits issues. To further support workers, Mr Zaqy highlighted initiatives like career conversion programs designed to help employers place workers in new roles, with the government providing subsidies and support through Community Development Councils (CDCs).

Patrick Tay calls for tripartite review of employment laws to safeguard workers' interests amid retrenchments

PAP MP for Pioneer SMC Patrick Tay, who also serves as Assistant Secretary-General in the NTUC and Executive Secretary of UWEEI, urged MOM to collaborate with tripartite partners to review existing advisories, guidelines, regulations, and employment laws to address ambiguities and gaps before future retrenchments occur. Patrick is also serving as Assistant Secretary-General in the NTUC In response, SMS Zaqy assured that there are ongoing dialogue among tripartite partners to ensure that laws and guidelines remain relevant in the changing environment. He acknowledged the need for continuous evaluation of practices, particularly concerning notification periods during retrenchments, emphasising that trust must be built over time, especially with new firms in Singapore. "I do agree that  there's always room for improvement and tripartism has to be built based on trust and confidence, and certainly both workers and the employees you know they both want win-win outcomes," he said.