Flash Coffee ex-employees unlikely to be paid owed salaries in near term, Union steps in

The former employees of Flash Coffee Singapore are unlikely to receive any owed salaries in the near term. According to a report by The Straits Times, this is because the process of liquidating the company will "take some time".

The Food, Drinks and Allied Workers Union (FDAWU) will be "assisting affected members with salary-related claims", and according to the statement by the company, employees are owed "outstanding salaries, CPF contributions, and prevailing leave entitlements".

It also shared that due to concerns around the welfare of its members and other employees, FDAWU visited some of the Flash Coffee outlets to verify the closure and also arranged to engage workers so as to better ascertain the circumstances and provide necessary assistance.

In an email to MARKETING-INTERACTIVE, Julie Cheong, president of the FDAWU shared that while Flash Coffee undergoes liquidation, it will be "assisting in case filing for owed salaries with Tripartite Alliance for Dispute Management (TADM), and queries regarding filing of proof of debt." 

A proof of debt is a documentary declaration made by a creditor that establishes proof of the debt that the company owes them. 

"This includes helping union members among ex-employees with filling in and submitting required documents and seeing through the process until the case is taken over by TADM," she added. 

Currently, the FDAWU is also providing affected employees with job assistance support, leveraging its network of unionised companies, the wider Labour Movement network, and NTUC’s e2i (Employment and Employability Institute). It is currently undergoing interviews with companies that have reached out to the union.

Affected members have also been given access to NTUC's Union Training Assistance Programme (UTAP) for subsidised training. 

"The union is also working with the former Area Manager to share our Labour Movement support with workers previously under his care. They have also been told to contact FDAWU (fdawu@ntuc.org.sg) for assistance," Cheong added. 

Don’t miss: Flash Coffee ceases ops in SG, debunks claims SG staff on strike

The news comes after Flash Coffee announced on 13 October 2023 that it was winding up its business in Singapore and ceasing operations across its 11 outlets in the country. On 10 October, workers were informed of the closure, effective 11 October, according to FDAWU's statement. They were later told on 12 October that their services would be terminated, effective on the same day.

In a prior statement to MARKETING-INTERACTIVE, the company said that during the transition, the well-being and future of employees remain a priority, and that contrary to reports, its staff in Singapore are not on “strike”.

Flash Coffee also told MARKETING-INTERACTIVE that employees in the Singapore head office staff have also been offered roles in other markets or with the regional team. Additionally, the company is also actively trying to connect its baristas with opportunities in other coffee chains.

The statement added that the move to shut the Singapore operations was in line with its “unwavering commitment to build a profitable and sustainable business”. As such, it has decided to further consolidate future efforts and to double down on its most promising markets. It added that most of the other markets have demonstrated “tremendous traction on top of a healthy foundation and show strong unit economics and future growth potential”, with some of the markets nearing EBITDA break-even in the coming months.

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