Agoda reaches agreement to work with NTUC, union and support retrenched workers with transition

Agoda has reached an agreement to work with unions and support its retrenched workers with the transition, National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees' Union said in a media release on Friday (Sept 19).

They explained that Agoda has had several discussions with NTUC, SISEU, the Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep).

Agoda has since acknowledged that "it was inappropriate for employers to include provisions that discourage or inhibit employees from approaching trade unions, government agencies, or statutory bodies for all situations", the release stated.

"We appreciate the management of Agoda for taking a proactive approach in engaging NTUC, SISEU and the Government, and for its transparency in sharing information regarding the exercise," the unions said, adding that they have determined the workers' retrenchment benefits to be in line with industry guidelines.

They also added that the Agoda management has agreed to work with the unions to support affected workers through their transition.

SISEU is reaching out to the impacted workers to provide guidance, while both NTUC and SISEU expressed commitment to providing resources for these workers, including financial assistance where necessary.

NTUC stressed that while retrenchments "may be inevitable", it should only be considered "as a last resort".

"Companies must exhaust all other options before making the call to retrench employees." 

"It is critical for companies to work with our affiliated unions to ensure that a fair and equitable process was carried out to safeguard the interests of all workers, especially our Singaporean core."

It also appealed to companies not to coincide the timing of such exercises with festive periods.

Employers must uphold spirit of fair and progressive employment practices: MOM

On the issue of Agoda's retrenchment, MOM said in a statement on Friday that the discussions have been an "encouraging development".

"We recognise that retrenchments can be difficult and distressing for workers," the ministry said.

"NTUC, NTUC's Employment and Employability Institute and Workforce Singapore (WSG) stand ready to provide support to workers through our programmes including job matching and career coaching."

Employers can enter into severance agreements with retrenched employees and should not hinder them from contacting authorities or unions when they have genuine concerns, the ministry said.

"Employers must uphold the spirit of fair and progressive employment practices, particularly during significant workforce changes such as retrenchments."

Agoda apologises

In a separate release on Friday, Agoda confirmed "provisions that discourage or inhibit employees" from contacting authorities are inappropriate.

"This runs counter to the spirit of fair and responsible employment practices in Singapore, and Agoda apologises for any language in our agreements that gave the impression employees could not approach government agencies, statutory bodies or trade unions for additional support and advice.

"This is their statutory right," the online travel agency stated.

It also apologised for the negative impact the employees may have felt, reaffirming its support of the tripartite employment practices in Singapore.

"We empathise deeply with employees who have been impacted by this restructuring and want to reaffirm our commitment to maintaining open communication, upholding fair employment standards, and supporting Singapore's world-class workforce.

"We are proud of our deep roots in Singapore, our home market. We will keep investing in Singapore and continue to hire highly skilled jobs particularly in the AI, product and technology space."

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khooyihang@asiaone.com