Asia Pacific Breweries Singapore (APBS), the producer of Tiger Beer, has confirmed the retrenchment of 33 employees as part of a restructuring exercise. The affected workers were informed on November 23 and were asked to leave the company premises the same day. The termination letter indicated that their official last day of employment would be December 31.

In an official statement, APBS acknowledged the changes in market conditions that necessitated this restructuring, emphasizing that several roles were impacted. The company expressed gratitude for the contributions of the affected employees and stated that it had provided necessary support in accordance with union and retrenchment guidelines.

The Food, Drinks and Allied Workers Union (FDAWU), which represents APBS employees, confirmed that the layoffs constituted about 8% of the company’s total workforce of 380. According to the FDAWU’s collective agreement with APBS, retrenched workers are entitled to one month’s notice or one month’s gross salary in lieu of notice. The company is also required to negotiate retrenchment benefits and ex gratia payments with the union.

Affected employees will receive severance pay equivalent to one month for each year of service, along with their annual wage supplement and performance bonuses for 2023. There was a sense of shock among employees regarding the layoffs, particularly since company communications had previously indicated strong financial performance.

The Ministry of Manpower (MOM) mandates that companies with more than 10 employees in Singapore notify the ministry of retrenchment exercises within five working days. This requirement aims to facilitate support for affected employees in finding alternative employment and improving their employability through relevant training.

Statistics from MOM indicated a rise in retrenchments in Singapore, with 4,100 layoffs reported in the third quarter of 2023, up from 3,200 in the previous quarter, largely driven by the wholesale trade sector.