Toyota distributor Borneo Motors lays off workers in restructuring exercise

“We recognise the impact this may have on colleagues and are providing appropriate support during this time. As discussions are ongoing, it would be inappropriate to comment further at this stage.” 

SMMWU said it had been notified in advance of the retrenchment exercise and worked with the company to ensure affected workers would receive fair severance packages in line with the collective agreement.

The union is currently engaging affected members and workers to provide support and ensure they are treated fairly.

“As a good employment practice, SMMWU urges employers undertaking restructuring or retrenchment exercises to engage and communicate with affected workers as early as possible,” the union said, noting that earlier communication allows workers more time to prepare and access assistance.

The Ministry of Manpower (MOM) said Borneo Motors had committed to providing a retrenchment package in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. Under those guidelines, the standard retrenchment benefit norm is two weeks to one month of salary for each year of service, applying generally to employees with two or more years of service.

The ministry said its priority is to help affected employees find new jobs. 

The Taskforce for Responsible Retrenchment and Employment Facilitation, which comprises MOM, the Skills and Workforce Development Agency, the National Trades Union Congress (NTUC) and NTUC’s Employment and Employability Institute, is working with Borneo Motors and SMMWU to provide job matching and career coaching.

Borneo Motors was incorporated in 1925 and became part of Inchcape in 1967. The company also distributes Hino trucks, a subsidiary of the Toyota group.