If you are someone who enjoys reading about corporate meltdowns, the Elon Musk-Twitter saga (along with FTX failure) continues to be the gift that keeps on giving. Days after he laid off about 50% of Twitter staff (prior to the layoff, Twitter had about 7,500 employees), Elon Musk doubled down on his initial move by giving an ultimatum to the remaining employees in Twitter – commit to “long hours at high intensity” or leave.
Currently, it’s unsure how many people have taken the option to leave (with a severance package of three months) but there is no doubt that Twitter’s headcount has further reduced. Since then, Twitter has announced yet another round of layoff, even among workers who have opted to commit to “long hours at high intensity”.
Looking back, along with wanting to change the entire top management, it’s clear that new owner Elon Musk wanted to reduce headcount at Twitter following his takeover, which explains the Thanos-like decision to retrench 50% of the staff. It’s also likely that he expected (and wanted) further reduction in headcounts when he gave his ultimatum to remaining workers, some of whom have voluntarily taken the chance to leave. And more will likely follow them to the exit, unwillingly.
Amid all these moves to reduce headcount, one question that should be on everyone’s mind is whether workers can actually do anything about the situation.
Can Anyone Save Us From Thanos?
To be clear, there is nothing illegal about retrenching workers. Companies, both big and small, can and do let workers go all the time depending on business requirements
According to the Ministry of Manpower, it’s mandatory for employers with at least 10 employees who have retrenched any employees to notify MOM of the retrenchment exercise. While it’s highly encouraged that companies should provide retrenchment benefits, this is not mandated under the law. If there is no contractual provision, any further negotiation on the severance package is left to the individual companies and their affected employees. And to be frank, it would be hard for a retrenched worker to hold much bargaining power with a company that no longer wants him/her.
Here’s where the labour unions are vital. Labour unions are organisations formed by workers to collectively negotiate for better workers’ rights and conditions. This could be in the form of higher salaries, safer workplace conditions or better retrenchment benefits.
The idea is simple. While individual rank-and-file workers may not be able to negotiate well with their employers, a collective and organised group of workers represented by their labour union can be much more effective in negotiating for workers’ rights.
Being A Union Member Is Like Buying Insurance Policies
When we buy an insurance policy, we are paying a premium to protect ourselves against the possibility of an adverse event happening. For example, if we buy a critical illness policy, then we pay a regular premium and claim from the policy if a critical illness occurs. However, we cannot buy an insurance policy only after a critical illness has occurred.
Joining a union shares some similarities. Unions can represent their members in the event of any labour dispute between employers and their workers. Ideally though, the worker has to be part of the labour union before the dispute arises. Otherwise, it would be difficult for the union to represent the worker unless the entire company is already unionised.
In an era where individual workers now have a lot more influence to seek for promotions, switch jobs or raise issues directly to management if they wish to, it’s easy to think that labour unions are no longer relevant. This isn’t true.
Even among professional, manager and executive (PME) workers today, there are strong reasons why an effective labour union can be valuable in standing up for the rights of the workers they represent.
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