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By Muneerah Bee Mohamed Iqbal
A dispute between the United Workers of Electronics and Electrical Union (UWEEI) and its branch NuTune Singapore Private Limited reached middle ground today.
The dispute involved payment of retrenchment benefits to 34 retrenched members
The Industrial Arbitration Court (IAC) has awarded that NuTune Singapore will pay $30,000 to UWEEI every month from 1 May 2012.
Additionally, the company will also pay a variable amount to the union, based on a formula which will be set out in a confidential agreement between the company and the union.
UWEEI will then distribute the total sum received to the 34 retrenched employees in a pro-rated manner.
When workers were retrenched from the company last year, the agreement was that NuTune Singapore would pay retrenchment benefits to the effected workers in installments.
However, the company stopped making payments in December 2011, citing financial difficulties within the company.