Sharp Reduction In Orders: Vietnam'S Famous Shoe And Clothing Factory Announced Nearly 3000 Layoffs

The day before yesterday morning, the Vietnam Bao Yuan shoe factory announced that it would terminate the labor contract with 2786 workers. Specifically, workers will receive 45 days' full salary starting from June 20th - from now until the formal termination of labor contracts (from August 5th to 8th).

Screenshot of the original report

Vietnam Bao Yuan Limited liability company was established in 1996, engaged in the processing of all kinds of sports shoes, there are more than 62 thousand workers, of whom 80% are women workers. According to the company, the company's orders dropped sharply due to the impact of the new crown pneumonia epidemic.

In the face of overall difficulties, the company has been scheduling production and arranging workers to rest and wait for work from April this year, but orders are still not optimistic until the end of the year.

Screenshot in Chinese

Therefore, the company had to terminate the labor contract with 2786 workers. The matter has been reported to the grass-roots trade unions and has been agreed. None of the above laid off workers belonged to the poor and disabled workers, and the workers who could not terminate the labor contracts according to the law.

Pan Wen, a manager of the municipal social insurance department, confirmed that Bao Yuan company complies with the relevant social insurance regulations. In the past, the company did not default on social security fees, medical insurance premiums and unemployment insurance premiums. Every month, the company turns over social security, medical insurance and unemployment insurance to about 150 billion yuan. Once the labor contract is terminated, the workers will be accounted for by the municipal social insurance agency and solve all the problems as soon as possible.

On the afternoon of June 20th, Do Dinh Thien, vice chairman of the people's Committee of Pingtan District, said that the right to pay the workers in full payment should be ensured (higher than the state regulations). In particular, the maximum severance payment is 300 million Vietnamese Dong / people, the lowest is 3 million Vietnamese Dong / people (new hire); the average allowance is 60-70 million Vietnamese Dong / people.

The company has more than 62000 employees, specializing in the export of sports shoes. According to the provisions of the thirty-eighth item and first item C of the labor law (due to natural disasters, fire or other force majeure reasons prescribed by law), the labor force of Bao Yuan company has been reduced. Employers have sought all remedial measures, but they still have to reduce production and reduce workplaces.

As early as June 2020, PouYuen said that due to the impact of Covid-19 epidemic, the company had to cut production due to reduced orders and reduced labor force. The total number of employees is expected to be reduced by nearly 6000. In particular, the number of layoffs in the morning of June 20th was 2786, and it is expected to continue to reduce about 3000 employees by August 2020.

Do Dinh Thien, vice chairman of the Pingtan Municipal People's Committee, made a petition to the Hu Zhiming Municipal Taxation Bureau to consider the workers' proposal, that is, 10% of the personal income tax paid to the company's benefits. It is suggested that social insurance in Hu Zhiming should be given priority to deal with redundancies.

Hu Zhiming, director of Social Security Bureau, confirmed that Bao Yuan had complied with the social insurance law, and did not owe social insurance, health insurance and unemployment insurance. Therefore, when the Employee terminates the labor contract, the settlement and settlement of the social insurance system will be carried out very quickly and fully, and the rights of the employees will be ensured.