Flash Coffee’s employees owed salaries, CPF contributions after sudden closure of all Singapore outlets: Union

SINGAPORE: Flash Coffee’s employees affected by the sudden closure of the company’s Singapore operations are owed outstanding salaries, Central Provident Fund (CPF) contributions, and prevailing leave entitlements, a union said on Friday (Oct 13).

Flash Coffee has shut all 11 of its outlets in Singapore.

Salaries owed to workers comprise the balance of 75 per cent of their September salaries, as well as wages for work done until Oct 12, said the Food, Drinks and Allied Workers’ Union (FDAWU) in a statement on Friday night.

It also includes the encashment of remaining leave days, the union added.

Workers were told on Tuesday that Flash Coffee outlets would close on Wednesday.

They attended a meeting on Thursday morning where news was shared that the company was placed on provisional liquidation on Monday, and that their services with the company would be terminated on Thursday.

The union said it first heard on Friday that Flash Coffee employees were being owed salaries after the closure of the outlets.

“The workers engaged by the union shared that there were no explicit plans to put up any coordinated action following companies’ sharing of the situation at hand,” said the FDAWU.

One store at Jurong Point had a sign that said workers were “on strike” over late salary payouts.

“Contrary to reports, our staff in Singapore are not on ‘strike’,” Flash Coffee told CNA on Friday afternoon.

“We ceased operations at our 11 stores and consequently, our baristas are not required to report to work.”

It added that it was “proactively assisting” affected team members.

“Most of our Singapore head office staff have been offered roles in other markets or with our regional team. Additionally, we are actively trying to connect our baristas with opportunities in other coffee chains,” the company said.

CNA has contacted Flash Coffee to ask about the outstanding salaries owed to workers.

The union said that it is assisting affected members with salary-related claims. It will also provide job assistance support, leveraging its network of unionised companies as well as the “wider labour movement network”.

“For workers whom FDAWU had already engaged, they had been connected to immediate job vacancies in the services sector.

“FDAWU will continue to monitor the situation and render any further support to members where required,” it added.

Launched in 2020, Flash Coffee, with its iconic yellow storefront, also operates in other Asian markets such as Indonesia, Thailand and Hong Kong. In 2021, it had almost 30 outlets in Singapore.