After a long-drawn battle spanning over two-and-a-half years, 17 former employees of the now defunct Raycom Engineering & Aerospace Pte Ltd have been awarded their outstanding salaries, either partially or in full.
Employees were owed up to four months’ worth of pay. The lowest amount owed was about $4,000.
The union has declined to reveal the total amount owed as the case is still on-going as at the time of publishing.
The workers comprised both PMEs and rank-and-file, some of whom had been with the metal precision components manufacturer for over 10 years.
The Singapore Industrial and Services Employees' Union (SISEU) assisted the affected workers throughout the entire process. Raycom had been previously unionised under SISEU.
SISEU General Secretary Richard Sim said he was heartened that the members were receiving their owed salaries.
He said: “We [the union] were in touch with the liquidators since 2019 and we worked through the liquidation process, which included helping our members submit the necessary documentation to file for claims.
“It has been a long and tough journey, but the members’ patience has paid off. SISEU will continue assisting our members till the case comes to a full-closure.”
For Mr Pratik, a former sales manager at Raycom, the issue of late payments began as early as 2015. The 39-year-old was with the company for over 11 years. He said he stayed on with the company because of the assurance given by the management that all payments will be made.
He recalled: “The management assured us that everything was going to be okay. We had complained from time to time, and when the amount became too big, they would suddenly pay everything. Things would then be okay for a few months, then the problem would start again.”
On 23 March 2017, Raycom was convicted and sentenced to a total fine of $17,500, for failing to pay salaries to the employees.
In total, the company faced 14 charges for failing to pay salaries to its employees.
Plagued with continued financial troubles, the court finally ordered the winding up of Raycom in February 2019. Liquidators were appointed to act on behalf of a company to sell the company's assets.
The 17 members met up with SISEU representatives and the liquidators on 24 July 2021, where the latter shared on the final processes.
During the meeting, the members were informed of their eligibility to recover minimally $13,000 of their defaulted payments by end July 2021. However, amounts beyond $13,000 were deemed as non-preferential claims and would have to wait until investigations concluded.
While some members were disappointed, most received the news as a welcomed relief.
“I’m happy but frustrated also that it [the whole process] took so long,” said Mr Pratik, “but $13,000 is not a small amount also.”
Cui Hai Yan was grateful to the union.
“I must thank SISEU for all that they have done to help,” Cui Hai Yan said in Mandarin.
The 39-year-old attended the meeting on behalf of her husband, 42-year-old Ding Guang Qing, who was a former machine operator at Raycom. Mr Ding is currently working in China.
“As I am currently still employed in Singapore, Ms Ong Ying Shya [SISEU Head Industrial Relations Officer] has constantly been updating me on my husband’s claims. I am glad that even though he is no longer working in Singapore, the union is still following up with us on this matter,” Ms Cui said.
