The labor union in Singapore has announced that employees of the Twelve Cupcakes bakery chain will begin receiving part of their overdue salaries starting at the end of this month, following months of negotiations. This announcement comes after the company's sudden closure that impacted around 80 employees, including both regular workers and executives.
Twelve Cupcakes ceased operations and entered temporary liquidation in October of last year, which sparked outrage from the union, who criticized the abrupt closure as "unacceptable and unfair." Affected workers reported being surprised by the bakery's closure, as they were not informed in advance.
Details of the Event
The labor union, which was informed of the company's closure on the same day it occurred, stated that affected workers will begin receiving part of their overdue salaries starting at the end of March 2026. The union confirmed that it has been working closely with the affected members on their salary claims and has guided them through the liquidation process.
The union clarified that the payments are part of the liquidation process and depend on the verification of claims and the availability of funds. Most affected members have been informed of the amount they will receive based on documented claims, while the remaining members are still being notified.
Background & Context
Twelve Cupcakes was founded in 2011 by former broadcaster Daniel Ong and his ex-wife Jaime Teo. After their divorce in 2016, the company was sold to the Indian Dhanasiri Group. In January 2021, Twelve Cupcakes faced a fine of SGD 119,500 (USD 91,800) for failing to pay seven employees a total of SGD 114,000 over two years.
At that time, the chain claimed it continued to practice the salary policy set by the previous management, which indicated a higher salary on paper than what workers actually received. Subsequently, fines of SGD 65,000 each were imposed on Ong and Teo under the Foreign Employment Act.
Impact & Consequences
This case exemplifies the challenges faced by workers amid difficult economic conditions, where many are at risk of losing their jobs without warning. It also highlights the importance of unions in protecting workers' rights and ensuring they receive their financial entitlements.
The union is also working to assist affected members in finding new job opportunities, connecting them with labor movement networks, including the National Employment and Recruitment Institute, providing over 400 job opportunities among the 70 affected workers.
Regional Significance
This incident sheds light on labor rights issues worldwide, including in Arab countries. Many workers in the region suffer from unstable working conditions, necessitating the strengthening of unions' roles and the activation of laws that protect their rights.
In conclusion, hope remains pinned on improving the economic and social conditions for workers and ensuring their rights to receive their salaries and entitlements in a timely manner.