Twelve Cupcakes’ retrenched staff get job leads, vouchers as union steps in; wages remain unpaid

SINGAPORE – Retrenched staff from Twelve Cupcakes were given a lifeline on Nov 4 as union representatives stepped in to offer job-matching support and guidance on unpaid salaries following

the company’s abrupt closure on Oct 29.

A week after the confectionery chain said it had been placed under provisional liquidation, giving no reasons, the Food, Drinks and Allied Workers Union (FDAWU) – an affiliate of the National Trades Union Congress – held two meetings at its River Valley office on Nov 4 for affected local and foreign staff.

About 30 of the 80 retrenched staff attended the meetings, including bakers, kitchen and counter staff, delivery drivers and office personnel from accounting, marketing and human resources.

During the meetings, each lasting about two hours, union representatives walked the staff through the liquidation process and the months it might take to recover unpaid wages, according to attendees who spoke to The Straits Times.

They also guided the staff on how to calculate their compensation, including overtime pay and salary for work completed on public holidays.

As part of its job-matching support, the union gave attendees a list of some 25 companies from the food and beverage, retail and hospitality sectors.

Hiring representatives from fast-food chains KFC and Pizza Hut – both under Yum! Brands – were present at the FDAWU office to conduct interviews for interested workers.

A Pizza Hut spokesperson told ST that discussions are ongoing as they explore potential opportunities for the candidates.

Some eligible attendees received supermarket vouchers worth between $150 and $200 from the union, according to those who spoke to ST.

They said they would be meeting the appointed liquidator, AAG Corporate Advisory, over a Zoom call later in November to discuss their unpaid salaries. Other creditors, including suppliers, are also expected to attend the call.

The Ministry of Manpower said on Oct 31 that

it would investigate Twelve Cupcakes

for unpaid salaries and potential breaches of the Employment Act.

Workers told ST they felt more assured after the union stepped in.

A few had job interviews lined up on the same day after the union meeting.

But many expressed concern about their future.

Ms Josephine Janopol, a former multi-outlet manager, said that while some of her colleagues have found new jobs, many others – particularly the older ones – are struggling to cover rent and other expenses. She added that the supermarket vouchers would help them tide over a difficult period.

Mr Parmjeet Sharma, also a former multi-outlet manager, said he would have to return to India with his family if he cannot get a job within a month, as required by his work visa.

“Whatever happened has happened, our lives will still go on. Right now, what we want is to get our salary back as soon as possible.”

FDAWU general secretary Sankaradass S. Chami said the union is committed to supporting its members through this difficult time. He said the members appreciated the union taking the time to explain the next steps and potential options for them.

Some employees questioned why Twelve Cupcakes continued to hire around six employees in the last quarter if the management knew about the impending closure.

Singaporean employee Maya, who asked to be identified by her first name, had joined the company for only three days before it shut down.

“I left my previous part-time job with another company for a full-time job at Twelve Cupcakes and all of a sudden, I don’t have a job now. It’s very unfair.”

She added that during her brief time at the company, she had fulfilled many customer pre-orders for baked goods that ultimately could not be sold. “I feel so squeezed, like an orange,” she said.

Workers said they still have not heard from Twelve Cupcake’s management.

The confectionery chain was founded in 2011 by entertainment artiste Jaime Teo and her then husband, former radio DJ Daniel Ong, before it was sold to Indian tea company Dhunseri Group in 2016.

ST understands that the Singapore business was led by chief executive Juliana Lee Choy Lin, though her name was not included in company filings with the Accounting and Corporate Regulatory Authority.

An employee who worked in the head office told ST that the company’s troubles had begun brewing as early as July, when suppliers started to visit the office to demand payment.

According to the suppliers, Ms Lee had been avoiding their calls since March, the employee said. She had also stopped appearing at the office in October, and the company was late in salary payment in September due to “cash-flow problems”.

Corporate documents show that Twelve Cupcakes had been in the red over the last few years, with a net loss of $1.23 million for the financial year to March.

According to Indian stock monitoring website ScanX, the ventures arm of the Dhunseri Group announced on Oct 31 a postal ballot to seek shareholder approval for the voluntary winding up of Twelve Cupcakes, of which it owned 81.83 per cent.

It said the subsidiary “faces liabilities and doesn’t significantly contribute to Dhunseri’s consolidated turnover or profitability”, and the move is aimed at streamlining corporate structure and reducing costs.

The proposal to wind up Twelve Cupcakes was approved by the Dhunseri board on Oct 29, and e-voting for shareholders will run from Oct 31 to Nov 29, with results expected by Dec 2. This could see the company disposing of more than 20 per cent of Twelve Cupcakes’ assets, resulting in Dhunseri ceasing control.

Ms Lee and the Dhunseri Group did not reply to ST’s queries.