(Singapore 8th) A subsidiary of one of China's central enterprises, China Inspection and Certification Group (CCIC), in Singapore, announced liquidation after being sanctioned by the US, reportedly laying off at least 300 people without paying May's salary, causing strong dissatisfaction among employees.
CCIC Singapore Pte Ltd, whose main business involves inspection, certification, and testing of petrochemical products, as well as ship bunkering inspection, was accused of covering up the origin of Iranian oil and was sanctioned by the US Treasury on May 13th. CCIC Singapore is alleged to have participated in the ship-to-ship transfer of about 2 million barrels of Iranian oil at the end of last year and was suspected of falsifying documents to certify the Iranian crude as Malaysian crude.
Two dismissed employees, who wished to remain anonymous, showed a formal layoff letter issued by CCIC Singapore General Manager Wang Guicheng on May 30th during an interview on Friday, June 6th.
According to the letter, the layoffs would take effect immediately the following day, due to financial difficulties and impending liquidation. The company would pay compensation in lieu of notice, cash for untaken leave, and unreimbursed claims, but severance pay is expected to be paid only after liquidation is completed by June 30th next year.
According to internal emails and WhatsApp screenshots seen by the reporter, CCIC Singapore's HR Department stated on May 14th that the headquarters planned to establish a new entity to undertake employees and business. However, the next day (15th), they issued a letter asking to disregard the previous content. On the 16th, the company began asking managers to prepare for layoffs but also stated that compensation payments could not be made due to frozen bank accounts.
On the 23rd of the same month, the company revealed that management would travel to Beijing for negotiations and stated the company was entering liquidation, with salaries likely to be delayed in the short term. On June 5th, HR announced that salary checks would be issued by June 27th at the latest. Employees who have served for at least two years can receive severance pay equivalent to two weeks' salary per year of service, with one week's salary to be paid in June and the other after liquidation is completed.
One employee criticized the management of CCIC Singapore for a lack of communication and empathy. He cited that junior inspectors at CCIC Singapore earn a basic monthly salary of less than 1,000 SGD (approximately 3278 MYR), and more experienced inspectors might earn 1,500 SGD per month. In other words, if they joined for two years, they could only receive about 500 to 750 SGD (1638 to 2458 MYR) in severance pay. He said some laid-off employees have sought help from the National Trades Union Congress and the Tripartite Alliance for Dispute Management (TADM).
Another employee said, "When a child is in trouble, the parents should come to the rescue. Why isn't the (Chinese) headquarters helping us?"
The Ministry of Manpower stipulates that any employer with at least 10 employees must notify the Ministry within five working days if dismissing any employee, otherwise a fine of no more than 2,000 SGD (approximately 6555 MYR) may be imposed. It is unclear whether CCIC Singapore has notified the Ministry within five working days.
When the reporter tried to contact CCIC Singapore on Friday, a female employee, who wished to remain anonymous, answered the phone and mentioned that she was also laid off and described the information given by CCIC Singapore's HR Department as "very chaotic." The reporter managed to contact CCIC Singapore General Manager Wang Guicheng, but he did not answer the call. He only replied via text message: "Our operating principles have always been fair and just, treating employees well, addressing third parties reasonably, and living up to expectations. Internal investigation and discussion are still ongoing and it is currently not appropriate to disclose further."
Inquiries have been made to the Ministry of Manpower, NTUC, TADM, and CCIC Group headquarters.
CCIC Singapore Pte Ltd, whose main business involves inspection, certification, and testing of petrochemical products, as well as ship bunkering inspection, was accused of covering up the origin of Iranian oil and was sanctioned by the US Treasury on May 13th. CCIC Singapore is alleged to have participated in the ship-to-ship transfer of about 2 million barrels of Iranian oil at the end of last year and was suspected of falsifying documents to certify the Iranian crude as Malaysian crude.
Two dismissed employees, who wished to remain anonymous, showed a formal layoff letter issued by CCIC Singapore General Manager Wang Guicheng on May 30th during an interview on Friday, June 6th.
According to the letter, the layoffs would take effect immediately the following day, due to financial difficulties and impending liquidation. The company would pay compensation in lieu of notice, cash for untaken leave, and unreimbursed claims, but severance pay is expected to be paid only after liquidation is completed by June 30th next year.
According to internal emails and WhatsApp screenshots seen by the reporter, CCIC Singapore's HR Department stated on May 14th that the headquarters planned to establish a new entity to undertake employees and business. However, the next day (15th), they issued a letter asking to disregard the previous content. On the 16th, the company began asking managers to prepare for layoffs but also stated that compensation payments could not be made due to frozen bank accounts.
On the 23rd of the same month, the company revealed that management would travel to Beijing for negotiations and stated the company was entering liquidation, with salaries likely to be delayed in the short term. On June 5th, HR announced that salary checks would be issued by June 27th at the latest. Employees who have served for at least two years can receive severance pay equivalent to two weeks' salary per year of service, with one week's salary to be paid in June and the other after liquidation is completed.
One employee criticized the management of CCIC Singapore for a lack of communication and empathy. He cited that junior inspectors at CCIC Singapore earn a basic monthly salary of less than 1,000 SGD (approximately 3278 MYR), and more experienced inspectors might earn 1,500 SGD per month. In other words, if they joined for two years, they could only receive about 500 to 750 SGD (1638 to 2458 MYR) in severance pay. He said some laid-off employees have sought help from the National Trades Union Congress and the Tripartite Alliance for Dispute Management (TADM).
Another employee said, "When a child is in trouble, the parents should come to the rescue. Why isn't the (Chinese) headquarters helping us?"
The Ministry of Manpower stipulates that any employer with at least 10 employees must notify the Ministry within five working days if dismissing any employee, otherwise a fine of no more than 2,000 SGD (approximately 6555 MYR) may be imposed. It is unclear whether CCIC Singapore has notified the Ministry within five working days.
When the reporter tried to contact CCIC Singapore on Friday, a female employee, who wished to remain anonymous, answered the phone and mentioned that she was also laid off and described the information given by CCIC Singapore's HR Department as "very chaotic." The reporter managed to contact CCIC Singapore General Manager Wang Guicheng, but he did not answer the call. He only replied via text message: "Our operating principles have always been fair and just, treating employees well, addressing third parties reasonably, and living up to expectations. Internal investigation and discussion are still ongoing and it is currently not appropriate to disclose further."
Inquiries have been made to the Ministry of Manpower, NTUC, TADM, and CCIC Group headquarters.