Borneo Motors lays off workers amid restructuring exercise

AI generated

SINGAPORE - Car dealer Borneo Motors, which distributes Toyota and Lexus cars in Singapore, laid off a number of workers on July 30 as part of a restructuring exercise.

A Borneo Motors spokesman declined to confirm the number of staff affected because discussions were ongoing.

The motor dealer is a unit of global automotive distributor Inchcape. Its spokesman said: “Inchcape has reviewed its organisation in Singapore to ensure the business remains well-positioned to deliver for customers and brand partners.

“As a result, we are making targeted changes to streamline our operations and better align with current needs and future priorities”.

Borneo Motors is a unionised company, falling under the Singapore Manual and Mercantile Workers’ Union (SMMWU).

SMMWU secretary-general Andy Lim said the company notified the union ahead of the restructuring exercise. It is believed the affected workers were informed on July 30, which was also their last working day.

The union also worked with Borneo Motors to make sure the severance package was fair and in line with the collective agreement, Lim added.

Lim said employers undertaking restructuring or retrenchment exercises need to engage and communicate with affected workers as early as possible.

Early communication allows NTUC and unions to work with the employer to engage affected workers before their last working day, and help support them sooner, he added.

Workers who are affected also have more time to prepare for the transition and get help if needed, he said.

After affected employees were informed on July 30, Borneo Motors called a town hall in the afternoon to confirm that there was a restructuring exercise, although no details were provided about how many people were let go.

On July 31, three Borneo Motors employees, who declined to be named, said there is still no word on how their work will change, whether they will take on more responsibilities or who they will be reporting to, among other things.

However, the workers said being invited to the town hall likely means that their jobs are safe for now.

One of the employees said he will know who was laid off “based on which company e-mail addresses bounce” in the coming weeks.

A spokesman for Taskforce for Responsible Retrenchment and Employment Facilitation said that it was working with Borneo Motors and SMMWU to support the affected workers.

He added that Borneo Motors had pledged to provide a retrenchment package aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

The taskforce – which was set up in March 2016 – comprises officers from the Manpower Ministry, the Skills and Workforce Development Agency, National Trades Union Congress (NTUC) and its Employment and Employability Institute.

The Borneo Motors restructuring exercise comes after a string of leadership-level changes at Inchcape Singapore over the last six months. Inchcape’s managing director quit on July 21, after the departure of the finance and marketing directors.

Inchcape Singapore is one of the largest multi-brand motor franchises in Singapore, together with Cycle & Carriage and Wearnes Automotive.

Like other legacy brands, Toyota is facing intense competition from Chinese car brands, whose electric vehicle models are better aligned with Singapore’s move to decarbonise transport and capture market share.