Borneo Motors lays off workers amid restructuring exercise
The company declined to say how many staff were impacted.
Borneo Motors, a car dealer in Singapore that distributes Toyota and Lexus vehicles, recently announced layoffs of some of its workers on July 30 as part of a restructuring exercise. The exact number of employees affected has not been disclosed, as discussions regarding the matter are still ongoing. Borneo Motors is a unit of Inchcape, a global automotive distributor.
Inchcape spokesperson explained that the company has undergone organization changes in Singapore to ensure it remains well-positioned to meet customer needs and brand partners' requirements. The restructuring is aimed at streamlining operations and aligning them with current and future priorities. Borneo Motors is a unionized company, and the Singapore Manual and Mercantile Workers’ Union (SMMWU) was informed about the restructuring exercise in advance.
The union worked with the company to ensure that the severance package met the collective agreement's requirements.
SMMWU secretary-general Andy Lim emphasized the importance of early communication between employers and affected workers, stating that it allows the National Trades Union Congress (NTUC) and unions to support employees during the transition. Affected employees must receive one month's notice of plans to lay off staff, while those who are retrenched are entitled to two months' notice or payment in lieu of notice.
The severance package includes a month's basic salary for every year of service, up to a maximum of 25 years. Sales employees receive $4,000 for each completed year of service, also capped at 25 years.
On July 31, three Borneo Motors employees spoke about not receiving any further information regarding the impact on their work. However, they believed that their participation in a town hall meeting held on July 30 indicated that their jobs were safe. Later that day, the Taskforce for Responsible Retrenchment and Employment Facilitation, a group set up by the Manpower Ministry, Skills and Workforce Development Agency, NTUC, and Employment and Employability Institute, promised to provide support to affected workers and pledged to follow the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
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