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SINGAPORE: HDT Singapore Holdings will close its taxi business due to the “prolonged debilitating impact” of the COVID-19 pandemic.
HDT’s application to the Land Transportation Authority (LTA) to exit the taxi business has been accepted, the firm said in a joint press release with the National Taxi Association (NTA) on Friday (November 27).
A total of 90 taxi drivers and four staff members will be affected, a HDT spokesperson told CNA.
“From the onset of COVID-19 in January 2020 and up until now, HDT Taxi has been struggling with slowing its business growth due to pandemic measures such as extended periods of people working from home and restricted travel. The challenges posed by COVID-19 are unprecedented, ”the statement said.
Revenue from the taxi business has fallen more than 50 percent since the pandemic began, the spokesman said.
AWS TO PAY
Downsizing benefits will be provided to all affected staff members, including drivers and the backend team that managed the taxi operations, the firm and NTA said.
“HDT will pay them one month’s salary for each year of service, on a pro rata basis,” the statement said.
All drivers will receive the Annual Salary Supplement and their Medisave will be recharged until the end of this year, the statement added.
Employed and probationary drivers will also receive an additional “staff reduction benefit” and the company will renew the NTA memberships of all taxi drivers by 2021, according to the statement.
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“Necessary assistance” is being provided to affected employees, such as linking them to job support and employment opportunities with NTUC’s e2i (Employment and Employability Institute), according to the statement.
“The downsizing exercise is carried out after close consultation with the NTA, consistent with tripartite advice on managing surplus labor and downsizing to ensure a fair and responsible process,” he said the notice.
“Together with NTA, it has been communicated to all affected personnel and their well-being has been a priority throughout the process.”
LINK WITH OTHER TAXI OPERATORS
HDT Managing Director James Ng said the firm will work closely with the NTA to help laid off drivers find new jobs with other taxi operators or taxi companies.
“Those who wish to become drivers of HDT’s rental cars or private bus services are welcome,” said Mr. Ng.
Ms Yeo Wan Ling, director of the National Trade Union Congress (NTUC), said that the NTA has “closely watched our taxi drivers” since the beginning of the pandemic.
“We note that this period is difficult for our drivers, especially with the majority of people who work from home,” he said.
“For affected drivers who wish to continue driving, NTA will connect them with other taxi operators to help them continue in their profession of driver.”
For those open to other employment opportunities, NTA and NTUC e2i will help them transition to a new job under the NTUC Occupational Safety Council, he added.
Eligible NTA members will also continue to receive member benefits and financial assistance programs, such as the Enhanced NTUC Care Fund (COVID-19) through the end of 2021, without a break in membership, added Ms. Yeo.
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“It is with great regret that we have to divest ourselves of the taxi business and lay off some of our dedicated employees,” Ng said.
“Regardless of how long you have served with us, I want to sincerely thank you for your professional contributions and for having persevered with us through this crisis.”
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