MOM meets with Dyson over layoffs as union calls for conciliation

Source: Straits Times
Article Date: 03 Oct 2024
Author: Tay Hong Yi

Dyson laid off an undisclosed number of workers on Oct 1.

The Ministry of Manpower (MOM) has met with consumer electronics giant Dyson to work on an ‘amicable solution’, after the company gave a labour union just one-day’s notice of its retrenchment exercise.

MOM said early on Oct 3 that it received a request from the United Workers of Electronics and Electrical Industries (UWEEI) for a conciliation session with Dyson.

MOM met with Dyson on Oct 2 and will also meet with the UWEEI “to understand the concerns of both parties and to explore an amicable resolution,” the ministry said.

It comes after UWEEI executive secretary Patrick Tay reiterated on Oct 2 that the union is disappointed that it was informed of the retrenchment exercise only a day before Dyson laid off an undisclosed number of workers on Oct 1.

“This is unacceptable as it does not give sufficient time for discussion between Dyson and UWEEI to ensure not just a fair, but also a responsible and progressive, retrenchment exercise,” said Mr Tay in a statement.

He added that more time for discussion would allow affected workers to be better supported.

MOM in its Oct 3 statement said that under the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, unionised companies should give unions early notice when informing employees of retrenchments.

“For Dyson, while the company is unionised, the retrenched PMEs (professionals, managers and executives) are not unionised, and they are not part of the scope of the union’s collective representation,” MOM noted.

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

MOM added that the formula adopted for computing retrenchment benefits for PMEs does not have to be based on that used for a rank-and-file employee, and is negotiable between the union and the company.

“This is an agreed tripartite position. If there are issues, MOM will conciliate the matter.

“The union has indicated that insufficient notice was given to the union prior to Dyson’s retrenchment exercise. MOM will discuss with both parties on ways to improve communications going forward.”

Mr Tay, who is also a labour MP, said retrenched Dyson executives may be able to seek help from the union to ensure their retrenchment benefits are fair.

However, the union must first confirm who the affected workers are and their job levels, which is information Dyson did not share with it.

“We are currently still trying to confirm details of the retrenchment package,” he said. “We understand from some affected employees that they were told to keep it confidential or risk affecting their retrenchment package.”

Mr Tay said that the union believes the package offered is in line with the UWEEI norm of one month per year of service, but he also noted that it is not known if there is a cap.

“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.”

He also said the UWEEI team has formed a task force to advise affected workers and help in their job searches.

“This is also a call-out to all workers in Dyson,” said Mr Tay.

“We stand behind you and ask you to join UWEEI so that we can better look after our members, especially our PMEs.”

The Straits Times has contacted Dyson for comment on UWEEI’s latest statement.

MOM in its statement said, “Singapore supports companies such as Dyson to continue investing and setting up operations in Singapore. We will work with these companies, economic agencies and NTUC to ensure that we remain both pro-worker and pro-growth.”