In a recent development, Agoda has reached an agreement with the National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees’ Union (SISEU) to support retrenched workers following a controversial retrenchment exercise. This move comes after strong criticism from the unions regarding allegedly restrictive severance agreements that discouraged employees from seeking help during difficult times.
Background on Retrenchments
The online travel platform, Agoda, faced backlash after announcing the phasing out of customer service support roles, leading to the retrenchment of fifty employees in Singapore. The decision, communicated during a closed town hall on 4 August 2024, was reportedly due to cost and recruitment challenges.
Unions’ Response
Both NTUC and SISEU expressed their dismay over Agoda’s alleged attempts to silence workers by including provisions in severance agreements that prohibited them from approaching trade unions or government agencies. According to the unions, these agreements threatened to cease severance payments should employees make any such reports.
- Interestingly, the unions highlighted that this practice undermined workers’ fundamental rights.
- They described it as “irresponsible and regrettable”, especially during a time when affected employees sought support the most.
- The unions were particularly worried about how this behaviour might scare workers away from seeking fair treatment.
Agoda’s Commitment
In response to the uproar, Agoda acknowledged the inappropriateness of the clauses in its severance agreements and publicly apologised. The company stated that such provisions ran counter to the spirit of fair employment practices in Singapore. They reaffirmed their commitment to maintaining open communication with affected employees.
Support from the Government
The Ministry of Manpower (MOM) commented on the situation as an “encouraging development” in terms of the tripartite collaboration among employers, unions, and the government. They reiterated the importance of fair and progressive employment practices, particularly during significant workforce changes.
As part of their support, MOM highlighted the resources available through NTUC’s Employment and Employability Institute and Workforce Singapore (WSG) for retrenched workers, including job matching and career coaching.
Moving Forward
While the situation remains delicate, the unions remain committed to ensuring that fair processes are followed during such transitions. They have encouraged Agoda and other employers to explore all alternatives before resorting to retrenchments, ensuring workers are treated with the respect and dignity they deserve. As the situation develops, it is clear that ongoing dialogue between Agoda, the unions, and governmental bodies will be crucial in addressing the needs of affected workers.