Latest news with #retrenchment
Malay Mail
2 days ago
- Business
- Malay Mail
Singapore-based Jetstar Asia to pay four weeks' salary per year of service to over 500 laid-off staff
SINGAPORE, June 11 — Jetstar Asia will cease operations on July 31, with over 500 employees in Singapore set to lose their jobs, parent company Qantas announced today. Channel News Asia (CNA) reported that affected staff will receive a retrenchment package that includes four weeks' salary for every year of service, a bonus for the 2025 financial year, a special thank you payment, and continued access to staff travel benefits for a period equivalent to their tenure. 'We are committed to supporting team members who are impacted by this announcement the best way we can,' a Jetstar Asia spokesman said. 'This includes providing redundancy benefits, career transition support and roles and opportunities across the Qantas Group and with other airlines and aviation partners in Singapore where possible.' The Singapore Manual and Mercantile Workers' Union (SMMWU), which represents some of the affected workers, said it had been informed of the permanent closure and has been actively engaging with the company. 'We negotiated with the company to ensure that affected members and workers are treated with care and receive fair compensation,' said SMMWU secretary-general Andy Lim. The union added that it would continue supporting its members with job placement assistance, career advisory services and financial aid during the transition. The Taskforce for Responsible Retrenchment and Employment Facilitation, which includes representatives from the Ministry of Manpower, Workforce Singapore, the National Trades Union Congress (NTUC) and NTUC's Employment and Employability Institute (e2i), also said it was working closely with the airline and SMMWU to assist the workers. It noted that Jetstar Asia had committed to a retrenchment package in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. 'Our priority is to help the affected employees with employment facilitation,' the taskforce said.
Yahoo
2 days ago
- Business
- Yahoo
Jetstar Asia to cease operations from July 31, over 500 employees in Singapore affected
SINGAPORE - Singapore-based low-cost airline Jetstar Asia will cease operations on July 31 as part of a 'strategic restructure' by its parent company, Australian flag carrier Qantas. More than 500 employees in Singapore will be laid off due to the closure, with the airline assuring that it will offer a range of support, including retrenchment benefits and employment opportunities, either within the Qantas Group or elsewhere. Jetstar Asia said in a statement on June 11 that it will continue to operate flights out of Singapore for the next seven weeks with a progressively reduced schedule until its final day of operations on July 31. Qantas said 16 intra-Asia routes will be impacted by the closure of Jetstar Asia, with no changes to Jetstar Airways (JQ) and Jetstar Japan (GK) services into Asia. Jetstar Airways' international services in and out of Australia will also remain unchanged. Jetstar Asia customers with bookings that are impacted by the announcement will be contacted directly, with the option of a full cash refund or an alternative flight where possible. The carrier, which operates out of Changi Airport Terminal 4, has set up a dedicated webpage with information for its customers, and its Travel Alert page will be regularly updated with the latest advice. Jetstar Asia said the decision to cease operations comes amid escalating supplier costs, airport fees and aviation charges in recent years, as well as growing capacity and competition in the region. The budget carrier is expected to post a loss of A$35 million (S$29.3 million) before interest and taxes this financial year, prior to the decision to shut down. Qantas chief Vanessa Hudson said some supplier costs have risen by up to 200 per cent. Jetstar Asia foresees the rising costs to continue in the future, putting 'unsustainable pressure' on the airline's ability to offer low fares, which it said is fundamental to its business model. Jetstar Asia chief executive John Simeone said: 'Unfortunately, despite our best efforts, the market conditions have ultimately impacted our ability to continue to offer the everyday low fares that are our DNA.' The Singapore Manual & Mercantile Workers' Union (SMMWU) said it has worked closely with Jetstar Asia's management to ensure affected workers receive fair compensation. SMMWU secretary-general Andy Lim said the union will support employees by providing job placement assistance and career advisory services across various industries, and financial aid, where necessary. Changi Airport Group (CAG) said it is disappointed by Jetstar Asia's decision to exit the Singapore market, but respects the carrier's commercial considerations. 'Our immediate priority is to ensure passengers are well-supported and to minimise disruption during the transition period,' the airport operator said in a statement. Jetstar Asia operates about 180 weekly services at the airport, and carried about 2.3 million passengers in 2024, accounting for about 3 per cent of Changi's total traffic. Of the 16 routes affected by Jetstar Asia's closure, 12 are served by 18 other airlines offering more than 1,000 weekly services, CAG said. 'We will monitor the routes affected by Jetstar Asia's exit, and where additional capacity is needed, we will actively engage other airlines to fill the gap,' it added. CAG will also work to restore connectivity to the four destinations served exclusively by the budget carrier from Changi. They are Broome in Australia, Labuan Bajo in Indonesia, Okinawa in Japan and Wuxi in China. 'CAG values its partnership with the Qantas Group and will continue to collaborate with Qantas and Jetstar Airways to support their growth and presence at Changi Airport,' it added. The Qantas Group will provide support for Jetstar Asia to continue to meet its obligations while operations wind down. 'Jetstar Asia has been part of the Jetstar family for more than 20 years and this is an incredibly difficult and sad day for our people, our customers and the entire Jetstar Group,' said Jetstar Group chief executive Stephanie Tully. Following the airline's closure, its 13 aircraft will be progressively redeployed across the Qantas Group to support fleet renewal and growth in the Australia and New Zealand businesses in line with underlying demand. Tell us if you are affected. E-mail us at stnewsdesk@ Source: The Straits Times © SPH Media Limited. Permission required for reproduction Discover how to enjoy other premium articles here
CNA
7 days ago
- Business
- CNA
About 300 employees laid off by China-linked Singapore firm facing US sanctions over Iranian oil shipments
SINGAPORE: A China-linked, Singapore-based firm has laid off hundreds of employees and is going into liquidation after it was slapped with sanctions by the United States last month. CCIC Singapore was among 15 companies blacklisted by the US on May 13 for helping to conceal the origins of Iranian oil being shipped to China. The cargo inspection firm is a wholly-owned subsidiary of China Certification & Inspection Group (CCIC), a Chinese state-owned enterprise headquartered in Beijing. Speaking to CNA on Friday (Jun 6), three affected employees said that staff across all departments of CCIC Singapore were notified of their retrenchments on May 30, and the terminations took effect the next day. Two of the employees said CCIC Singapore has over 400 workers in Singapore and Malaysia, with the majority based in Singapore. A third employee said the firm has more than 300 workers in Singapore alone. The employees, who spoke on condition of anonymity, said the company had delayed the payment of salaries owed for May. Retrenchment notices attributed this to the firm's "pending liquidation". They also took issue with the severance pay of two weeks' salary for every year of service completed, especially for surveyors who rely on overtime pay and allowances to supplement their basic salaries. Junior surveyors earn less than S$1,000 in basic salary a month, while more senior surveyors may earn between S$1,000 and S$1,500, two of the employees said. According to the employees, CCIC Singapore is not unionised. Individual workers have reached out to the National Trades Union Congress (NTUC) and the Tripartite Alliance for Dispute Management (TADM) for assistance. CNA has contacted CCIC Singapore, its parent company CCIC, the Ministry of Trade and Industry and NTUC for comment. US SANCTIONS CCIC Singapore was set up in 1989 and has its registered address at Singapore Science Park. Its customers include Shell, BP, Total, Exxon Mobil and major Chinese petrochemical corporations, according to CCIC's website. Parent company CCIC was established in 1980 and is part of China's State-Owned Assets Supervision and Administration Commission of the State Council. The US blacklisted CCIC Singapore for helping to obscure the origins of Iranian oil, which is typically done through numerous ship-to-ship transfers, oil blending and false documentation. Sepehr Energy, which is a front company of Iran's military, "consistently relied" on CCIC Singapore for cargo inspections of oil being delivered to China, according to the US Treasury Department. In 2024, CCIC Singapore provided inspection services during a ship-to-ship transfer of about 2 million barrels of Iranian oil from a sanctioned vessel. That same year, the firm also "likely provided" falsified documents to conceal the identity of another sanctioned vessel and certify its cargo of Iranian oil as Malaysian crude. According to the US Treasury Department, Iran's illicit oil trade funds the development of ballistic missiles and drones as well as regional terrorist groups. The sanctions freeze all US-linked assets of the blacklisted companies and individuals. Any company that is at least half-owned by those sanctioned is also blocked from transactions engaging US businesses or the US financial system. ANGER AMONG EMPLOYEES Two of the affected employees denied knowledge of the activities for which the US sanctioned CCIC Singapore, saying that their departments were not involved. Both employees told CNA they only learnt their firm had been blacklisted when customers started cancelling job orders on May 13, citing the sanctions. The severity of the sanctions did not sink in at first, they said. Over time, their concern over the blacklisting morphed into anger at how the management was communicating with employees. They criticised the firm's "flip-flop" on the impact of the sanctions, and what they called a lack of responsibility and transparency from CCIC Singapore's managing director. "If you really treasure or appreciate ... our efforts (that) we have put into this company, I think probably he has to come and thank us, or say sorry, this type of unfortunate thing happened," said one of the employees. But there was no such expression of apology or regret, he said, adding that before Friday, the company also did not give affected employees any support for job placement or career guidance. "This is a foreign company. They act like high and mighty, they leave us in the lurch, just like that. And I'm very mad because the top man doesn't even see us, talk to us," said the employee. While the company's US-linked assets have been frozen, the employees questioned why its assets in Singapore, including property and equipment, could not be used to pay salaries and retrenchment benefits. They also questioned why the parent company was not helping to ensure that employees were paid. "When your children are in trouble, rightfully, the parents should rescue them, right? Why aren't the HQ rescuing us?" the employee asked. INTERNAL EMAILS The employees showed CNA their retrenchment notices as well as internal company emails, which mark a timeline of how the impact of the sanctions played out for employees. On May 14, CCIC Singapore employees received an email from a human resources (HR) officer acknowledging concerns over the sanctions. The email stated that the company's headquarters was "fully committed to supporting our operations" and it had engaged legal counsel to appeal against the sanctions. "In response to the situation, a new company - fully backed by our HQ - will be established within this month," stated the email. "All employees will be smoothly transferred to the new entity, and operations will continue as usual. There will be no disruption to your roles, responsibilities, or employment terms." However, a day later, employees received another email from the HR department asking them to "disregard" the email from the day before. It made reference to an "internal restructuring initiative" but continued to assure employees that they would receive their salaries and claims as usual. On May 16, heads of department were asked to identify key staff members in preparation for a downsizing exercise. They were also informed that CCIC Singapore was "not in a position" to pay retrenchment benefits as its bank accounts had been frozen. A week later, a company-wide email said that salaries would also be delayed due to the freezing of accounts, and that the firm's managing director was going to Beijing for "high-level discussions". Employees received their retrenchment notices on May 30. These notices stated that the company was going into liquidation and retrenchment benefits would only be fully paid after that process was complete, with an estimated date of Jun 30, 2026.
Free Malaysia Today
23-05-2025
- Business
- Free Malaysia Today
AirAsia says report of 20% job cuts ‘misleading'
A news portal today reported that AirAsia is expected to retrench 20% of its current workforce as part of an ongoing restructuring exercise set to be completed by August. (AirAsia pic) PETALING JAYA : AirAsia says a recent report that the low-cost carrier will retrench 20% of its current workforce is 'misleading and irresponsible'. In a statement to FMT, AirAsia said it is considering its legal options in light of the report in The Scoop earlier today. 'We do not comment on speculative reporting,' it said. 'We will review our legal options in response to the publication of misleading and irresponsible content.' The news report said AirAsia was expected to retrench 20% of its current workforce as part of an ongoing restructuring exercise, set to be completed by August. A source within the aviation industry said the restructuring was necessary to ensure the airline's employee expenditure is aligned with its annual income. Departments allegedly affected included cabin services, cargo and logistics, engineering and maintenance, and the commercial division, the report added. AirAsia's website states that it has 21,000 staff across Malaysia and the rest of the region.
