Borneo Motors, the authorised distributor of Toyota and Lexus cars in Singapore, has retrenched employees as part of a restructuring exercise to streamline its operations, according to CNA.
Affected employees were informed on 30 July, which was also their last working day, the Singapore Manual and Mercantile Workers’ Union (SMMWU) told CNA.
The move follows Inchcape, Borneo Motors' UK-listed parent, announcing management action across Asia-Pacific to reduce costs, strengthen collaboration with carmakers, and optimise its contract portfolio. In its half-year results released on 28 July, Inchcape reported a 7% fall in APAC organic revenue and declining operating margins, with Australia a particular drag.
Inchcape said it had reviewed its Singapore organisation to ensure the business remained well positioned 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,' a spokesperson was quoted as saying.
SMMWU said it had been informed in advance and worked with Borneo Motors to ensure affected workers receive severance packages in line with the collective agreement. The union is continuing to engage affected members and workers to provide support.
Source: humanresourcesonline.net
