Workers at Flash Coffee are still owed salaries after abrupt closure

Flash Coffee's abrupt closure of its Singapore operations has left employees with unpaid salaries and Central Provident Fund (CPF) contributions, according to a statement by the Food, Drinks and Allied Workers’ Union (FDAWU) on Friday (Oct 13).

The non-unionised company has shuttered all 11 of its outlets in Singapore. Employees are owed 75 per cent of their September salaries, wages for work done up to Oct 12, and compensation for unused leave days, the FDAWU revealed.

Workers were informed on Tuesday that the outlets would close the following day. During a meeting on Thursday morning, it was disclosed that the company entered provisional liquidation on Monday and that their employment would end on Thursday.

The union said it learned on Friday that Flash Coffee employees were owed salaries after the outlets were closed.

“The workers engaged by the union shared that there were no explicit plans to undertake any coordinated action following the company’s announcement,” said the FDAWU.

A sign at the Jurong Point store indicated that workers were "on strike" due to delayed salary payments. However, Flash Coffee refuted this, telling CNA on Friday afternoon, "Contrary to reports, our staff in Singapore are not on 'strike.' We ceased operations at our 11 stores, so our baristas are not required to report to work."

The company also noted that it was "proactively assisting" affected employees. "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," said Flash Coffee.

CNA has reached out to Flash Coffee regarding the unpaid salaries.

The FDAWU is helping affected members with salary-related claims and providing job assistance through its network of unionised companies and the larger labour movement. "For workers whom FDAWU had already engaged, they have been connected to immediate job vacancies in the services sector. FDAWU will continue to monitor the situation and offer further support as needed,” the union added.

Founded in 2020, Flash Coffee is known for its distinctive yellow storefronts and also operates in other Asian markets such as Indonesia, Thailand, and Hong Kong. At its peak in 2021, it had nearly 30 outlets in Singapore.