Multinational food packaging and processing company Tetra Pak will retrench about 300 employees as the company moves to close its Jurong factory and consolidate production into its other factories in the region.
This shift will take place over the next 12 months and is part of the company’s strategy to optimise its global manufacturing footprint, serve customers better and adapt to the changing market dynamics, Tetra Pak said in a press release yesterday (Feb 27).
The company’s affected employees, who mainly worked in manufacturing, were informed on Feb 27, with discussions set up throughout this week to offer new opportunities or outplacement support.
Tetra Pak had consulted the Food, Drinks and Allied Workers Union (FDAWU) in Singapore ahead of the announcement and said that it will also leverage NTUC’s e2i (Employment and Employability Institute), with support from Workforce Singapore (WSG) and NTUC LearningHub (NTUC LHUB), to host a job fair to support career conversion with different companies and provide onsite training to affected employees.
In addition, Tetra Pak will engage with employees keen to apply for other positions within the company, locally or in the region.
According to a separate statement from the FDAWU, affected workers will receive retrenchment support packages in line with unionised norms. They will also benefit from numerous “good practices”, both monetary and non-monetary, following the union’s discussions with the company.
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. Through discussions between FDAWU and Tetra Pak, the parties were able to align on better retrenchment support packages for affected workers.
– Tan Hock Soon, General Secretary, Food, Drinks and Allied Workers Union
By the end of the year, Tetra Pak will relocate its corporate office to a new, well-connected and accessible location in Singapore. This will be one of its largest offices in Asia Pacific, with a capacity of up to 250 people.
The Jurong factory was one of Tetra Pak’s largest packaging materials factories in the world
Tetra Pak’s Packaging Materials factory in Jurong started operations in 1982 and was one of the company’s largest packaging materials factories in the world, supplying customers in Singapore and serving as an export base.
However, with market dynamics changing significantly over the past decades, the company recognises the need to adapt in order to maintain competitiveness, Tetra Pak said in the press release.
According to the company’s website, the company currently employs more than 24,000 employees worldwide. Its global organisation consists of 87 sales offices, 27 market companies and 52 production plants.
With the decision, the company “remains committed to serving its customers in Singapore and across the region with high levels of quality and reliability, leveraging its global manufacturing footprint and always-on customer support”.
Featured Image Credit: Tetra Pak
