Retrenched employees from Dyson included professionals, managers or executives
The Ministry of Manpower (MOM) has confirmed that Dyson complied with Singaporean laws in handling its recent retrenchment exercise after unions expressed disappointment over its one-day notice.
MOM noted that all retrenched employees from Dyson are professionals, managers, or executives (PMEs) who are not unionised and therefore not within the scope of the union's collective representation.
This makes the period of notice negotiable, according to MOM.
"Hence, Dyson handled the recent retrenchment exercise in accordance with our laws and tripartite advisories as the PMEs were not under the collective agreement," MOM said.
According to MOM, Dyson has also offered an explanation to the United Workers of Electronics & Electrical Industries (UWEEI) for not being able to give them a more advanced notice regarding the retrenchments.
The UWEEI previously expressed disappointment after Dyson only informed them about the retrenchment exercise a day before it was carried out.
"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," UWEEI secretary Patrick Tay said earlier this month.
The UWEEI also expressed concern over what retrenchment benefits were provided to laid-off Dyson employees, noting the lack of information provided to the union.
Singapore's Tripartite Advisory on Managing Excess Manpower states that the amount of retrenchment benefits "depends on what is provided for in the collective agreement; otherwise, it will be negotiated."
Retrenchment benefits for PMEs, however, can be calculated differently from rank-and-file employees, MOM said.
In Dyson's case, MOM confirmed that the company went "beyond what they are obliged to do" when it comes to retrenchment benefits.
"While there is no requirement to do so and the affected workers are not covered by the collective agreement, Dyson provided a retrenchment benefit quantum for its PMEs that is in line with our tripartite advisory," MOM said.
"In addition, only employees that have served the company for at least two years are eligible for retrenchment benefits, but Dyson provided affected employees who have served for less than two years a payment as well."
Affected employees were also granted after-care support, outplacement assistance, and access to career coaching and counselling, according to MOM.
Meanwhile, MOM has also confirmed that Dyson submitted its mandatory retrenchment notification (MRN) to the ministry within the acceptable timeframe.
"Dyson submitted its MRN to MOM on time, within five working days of notifying the affected employees," MOM said.
This move allowed the Taskforce for Responsible Retrenchment and Employment Facilitation to provide career facilitation services and information kits to affected employees.
Overall, MOM said only about 30% of MRNs were filed late to the ministry, with around half still submitted before the retrenchment date of affected employees.
In Singapore, only employers with fewer than 10 employees are exempted from submitting MRNs as it could place too much administrative burden on smaller organisations.
"Nonetheless, we encourage all employers to notify MOM of any retrenchment exercise early, so that we can extend support to the affected employees," MOM said.
