SINGAPORE - Food processing and packaging company Tetra Pak will be closing its plant in Jurong, a move that will affect about 300 employees based in Singapore, mainly in manufacturing.
The company said on Feb 27 that it is consolidating its Singapore-based packaging material production into its other factories in the region over the next 12 months, a response in part to “changing market dynamics”.
The Food, Drinks and Allied Workers Union (FDAWU), which Tetra Pak workers are unionised under in Singapore, said the company has been working closely with it to assist affected workers, who will receive retrenchment support packages in line with unionised norms.
The union and Tetra Pak have a good longstanding labour management relationship dating back to 1993, noted FDAWU, adding that through their discussions, they “were able to align on better retrenchment support packages for affected workers”.
In response to queries from The Straits Times, Tetra Pak said it remains committed to the Singapore market and will maintain an office here that handles functions such as business management, human resources and marketing.
A Tetra Pak spokesman said: “We will be moving to a new, well-connected and accessible location in Singapore. Singapore will continue to host one of our largest offices in the Asia-Pacific, with a capacity of up to 250 people.”
The spokesman added: “We understand and recognise that this is not easy for our employees. The company has weighed every option to create the best social package for them. Further details and the package terms according to roles and positions will be provided, one on one, between each employee and the HR team.”
The Tetra Pak Packaging Materials factory in Jurong started operations in 1982, supplying customers in Singapore and serving as an export base. According to Tetra Pak’s Singapore website, its business partners include local and international players such as Yeo’s, Ayam Brand, Pokka and Nestle.
The company said the affected employees were informed on Feb 27, with discussions set up throughout the week to offer new opportunities or outplacement support.
It added: “Tetra Pak is committed to supporting all impacted employees by delivering above and beyond all applicable statutory requirements and ensuring they are treated with the utmost respect and care, in line with company values.”
FDAWU general secretary Tan Hock Soon said: “Through FDAWU’s close working relationship with Tetra Pak, the company gave early notification of the consolidation exercise and coordinated with us to provide adequate support to retrenched workers and facilitate job opportunities for affected workers.”
The union will provide job assistance support to affected workers, leveraging its network of unionised companies as well as the NTUC Training and Placement Ecosystem, which includes NTUC’s Employment and Employability Institute (e2i) and NTUC LearningHub, with support from Workforce Singapore.
The union added that it is working with Tetra Pak to organise a job fair and interviews with companies, actively linking affected workers with potential employers.
The FDAWU said: “This job assistance support will provide opportunities for career coaching, job interviews and on-site training to enhance the skill sets of affected workers, so that they are well equipped for new employment opportunities.”
