People Come First in Retrenchment Case

After more than 40 years of producing seasonings, marinades and spices here in Singapore, McCormick Ingredients South East Asia will be relocating its manufacturing operations overseas to optimise its regional supply chain capabilities.

The company also set up its Asia Pacific headquarters and Technical Innovation Centre in Singapore last year to drive its regional growth plans, focusing on new product innovation and flavour solutions for its customers.

As a result, some 39 full-time employees, mainly from the production and quality assurance teams, have been affected. 15 of the employees are Food, Drinks and Allied Workers’ Union (FDAWU) members.

The McCormick Way

While retrenchment was inevitable, McCormick’s people-first approach stands out as a positive example for how it can be handled well.

“Such decisions are never easy, but our first priority was to engage early, openly and transparently with affected colleagues in Singapore. We were also committed to supporting them meaningfully through the transition with great care and respect. 

“We sought to extend support that was reflective of their contributions over the years and provide them the encouragement and means to transition confidently to the next chapter with career guidance and re-training… We have tremendous regard for colleagues in the Singapore factory for all their efforts over the years. They have been an integral part of our business and their efforts have laid the foundation for the McCormick of tomorrow,” said Daniel Moorfield, President, Asia Pacific Zone, McCormick & Co.

The Retrenchment Package

The company’s Human Relations Director for Southeast Asia Alysia Chan (pictured right) shared that McCormick’s management had engaged the workers right from the onset. While the retrenchment exercise was due to take place in the second quarter of 2018, affected workers were informed two years in advance, in August 2016.

Working together with FDAWU and the company’s branch official Mohamad Sarib Suyot (pictured left), Alysia shared how there had been a lot of collaboration and consultation to give the affected workers necessary support.

“We wanted to assure the employees that they would still have their jobs as there was nearly two years ahead of us. We also announced the $1,000 training incentive which employees can start to use from August 2016 to learn new skills or refresh their knowledge for their new career. We encouraged them to make use of the training incentive because we believe that one should not wait till the last minute, but to always prepare early,” said Alysia.

In addition to regular updates about the situation, the company also worked with NTUC’s e2i (Employment and Employability Institute) to run career counselling sessions and Employability Workshops to help workers prepare for new careers. To support employees through their transition, the company also extended their medical insurance by an additional three months from their last day of service.

“Our consideration was in making sure that after leaving the company, they [the workers] will still be able to have a good livelihood,” shared Alysia.

She added that despite the plant closure plans, efforts to match employees’ salaries and benefits to market standards continued as McCormick believed in doing the right thing for their people. Besides enhancing the medical benefits to cover employees’ spouses and children, five days of personal leave were also given to staff for birthdays, family care, training or volunteer work.

Moving On

Sharing his sentiments, Sarib detailed that the retrenchment exercise was handled very thoughtfully and efficiently.

“They gave us ample time to prepare, and with the retrenchment benefits [training grant], workers could upgrade their skills or pick up new ones to help them switch careers. It was very smooth. From what I experienced, there had been a lot of progress. Some of the staff have enrolled in new programmes, while other haves already passed courses and picked up new qualifications such as a forklift driver’s licence. I myself am currently in the midst of attaining my bus licence.”

The 55-year-old added that the union is not just working to help union members, but non-members as well.
“This will help them know that in their future careers, they will know how the union has helped and supported them. For me, it is an opportunity to educate them on just how the union can be there for them,” said the long-serving union leader who has been with the company for 27 years.

Concurring, 26-year-old Warehouse Assistant Lau Feng Yew (pictured) agreed that the whole process was done well, and that the necessary items in the package was also in order. “It’s definitely a shame because we’re all very happy and used to working here. The retrenchment may be inevitable, but the company have done everything they could for us,” he said.