Join the union.
As evidenced by the recent Lazada business restructuring, the union’s help can go a long way for all workers, including professionals, managers, and executives (PMEs).
If you are at risk of a retrenchment, here are three ways unions can protect you:
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Union Will Support You During Retrenchments
Unfortunately, PMEs are more likely to get retrenched than other worker types – about twice as possible, according to the Ministry of Manpower’s (MOM) data between 2020 and 2022.
But fret not. If you are a PME facing retrenchment, unions will support you in getting a fair package.
For example, with the Lazada business restructuring, the Food, Drinks and Allied Workers Union (FDAWU) negotiated an enhanced support package for affected union members.
First, if you are retrenched, you are entitled to a retrenchment payout if it is stipulated in either your employment contract or your union’s collective agreement with the company, and you have worked for the employer for at least two years.
If payouts are not stated in the employment contract or there is no collective agreement, NTUC and the union will negotiate the retrenchment package on your behalf.
Suppose you are a union member working in a non-unionised company. In that case, the union will help you file a case with the TADM@NTUC (Tripartite Alliance for Dispute Management).
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Helping You Get a New Job
If they are retrenched, it will be more difficult for PMEs to get a new job.
Between 2020 and 2022, PMEs made up the lowest percentage of workers to re-enter the workforce within six months of getting retrenched compared to other worker types.
You will not be alone trying to land a new job. NTUC and its affiliated unions will also support you to re-enter the workforce.
You can get various re-employment support through NTUC’s e2i (Employment and Employability Institute), such as career guidance, career fairs and job portals.
Going back to the Lazada business restructuring, FDAWU negotiated a dedicated training fund for union members, which will help workers in reskilling and upskilling.
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More Union Representation and Protection for PMEs
The benefits and protection do not stop at retrenchment and re-employment.
In 2015, the Industrial Relations Act was amended to allow rank-and-file unions to represent PMEs collectively.
PMEs who are ineligible for collective representation can still be helped by unions individually.
These PMEs can get limited representation for the following issues:
- Dismissal appeal
- Retrenchment benefit
- Breach of employment contract
- Victimisation
- Re-employment
In 2019, another law – the Employment Act – was amended to remove the monthly salary cap of $4,500 for PMEs.
This means that all employees, regardless of their salaries, are covered by the act’s core provisions.
NTUC and its unions will be by your side if you face retrenchment. Sign up to become a union member at https://bit.ly/49xy2Tl.