Asia Pacific Breweries Singapore (APBS), the maker of Tiger Beer, has retrenched 33 workers as part of its latest restructuring exercise. The decision, communicated to employees on November 23, took immediate effect, with the last day of employment stated as December 31.
Company’s Statement on Restructuring
APBS cited changing market realities in Singapore as the reason for the restructuring. While acknowledging the contributions of the affected employees, the company assured that all necessary support aligned with union and retrenchment guidelines would be provided.
Union Involvement and Employee Severance
The affected workers, represented by the Food, Drinks and Allied Workers Union (FDAWU), are entitled to one month’s notice or gross salary in lieu of notice. According to the FDAWU’s agreement with APBS, retrenched workers will also receive severance pay equivalent to one month of salary for each year of service, along with their annual wage supplement and performance bonus for 2023.
Employee Reactions and Ministry’s Role
Employees expressed shock and surprise at the sudden retrenchment, especially given the company’s reported good financial performance. The Ministry for Manpower (MOM) requires companies with more than 10 employees to notify the ministry of retrenchments, allowing agencies like Workforce Singapore to assist affected employees in finding alternative employment or relevant training.
Broader Economic Context
The retrenchments at APBS are part of a larger trend in Singapore, where the number of retrenchments and unemployed residents rose in the third quarter of 2023 due to a weaker economic outlook. The increase in retrenchments, predominantly in the wholesale trade sector, is indicative of broader economic challenges facing the country.
Also learn about Singapore’s Sip of Choice: The Most Popular Alcohol Amongst Its People.
