SINGAPORE: Bread manufacturer Gardenia Foods will retrench 141 employees at its manufacturing facility in Pandan Loop after announcing on Wednesday (May 20) that it is shifting its bakery production to Johor Baru.
“The move is part of Gardenia’s ongoing efforts to enhance operational efficiency and maintain competitiveness amid an increasingly challenging global environment,” the company said in a statement.
Production at the manufacturing facility will cease on June 30, it added. The affected workers’ last work day is on June 30.
The Singapore factory will remain its headquarters, overseeing functions such as brand management, product development, daily distribution and supply chain operations.
When The Straits Times arrived at the Pandan Loop factory at about 1.20pm, a receptionist at the front counter declined to comment.
At around 1.45pm, employees – some wearing Gardenia polo T-shirts – were seen entering the factory and heading to the second floor. Three people approached by ST declined to comment.
Gardenia said in its statement that it informed employees at an internal meeting on the morning of May 20, and that affected staff will receive the appropriate notice period and support in line with local regulations and guidelines.
The company is also considering eligible employees for suitable roles within its network of operations where possible.
After the exercise, Gardenia will still have 250 employees in Singapore, which will remain its headquarters for key functions, it said.
The Food, Drinks and Allied Workers Union (FDAWU), an affiliate of the National Trades Union Congress (NTUC), was informed in advance and present at the internal meeting, said Gardenia.
FDAWU provided support such as training, job placement assistance and discussions on fair retrenchment terms, added Gardenia.
The union also used its network of unionised partners to identify suitable vacancies for affected workers.
It also worked closely with Gardenia to ensure fair compensation and transition support for affected employees, and will organise on-site jobs and skills training for affected employees soon.
The company is unionised under FDAWU, whose collective agreement sets out retrenchment benefits for affected workers.
Employees with at least two years of service are entitled to one month of their last-drawn basic salary for each completed year of service, with pro-rated payouts for incomplete years.
According to the collective agreement, retrenched workers are also entitled to pro-rated annual leave and annual wage supplements.
Gardenia said it would also sponsor one year of union membership for existing members so they may continue to access career and financial support.
In a statement on May 20, the Taskforce for Responsible Retrenchment and Employment Facilitation noted Gardenia was conducting a restructuring exercise and scaling down its operations in Singapore.
The task force – which comprises the Ministry of Manpower, Workforce Singapore, the National Trades Union Congress and NTUC’s Employment and Employability Institute, or e2i – said Gardenia had notified FDAWU in advance.
Eligible Singaporeans and permanent residents can also receive temporary financial support of up to $6,000 over six months from the Jobseeker Support Scheme while seeking employment, added the taskforce. - The Straits Times/ANN
