PouYuen Vietnam lays off 2,786 workers

PouYuen Vietnam, a sports shoe manufacturer in Ho Chi Minh City’s Binh Tan District today announced it terminated 2,786 labor contracts due to the unfortunate circumstances of the Covid-19 crisis.

PouYuen Vietnam has approximately 62,000 employees mostly women (Photo: SGGP)

PouYuen Vietnam has approximately 62,000 employees mostly women (Photo: SGGP)

Established in 1996, the firm has approximately 62,000 employees mostly women. Laid off workers neither are from poor households nor disabled person. All the laid off workers had received benefits.
The company announced because of Covid-19 crisis, its order fell drastically. The company has asked workers to pause working in turn since April; however, the situation has not been better so the firm has had no choice but lay off 2,786 laborers.
The company had reported to the city Labor Union which had greenlighted the company’s proposal to end contract with laborers. Of the 2,786 laborers, none are poor or disabled as per the present regulations.
The firm had told workers about the decision to lay off 45 days ago. During 45 days, the workers are entitled to enjoy their full salary without working.
Regarding benefits for workers who were made redundant, the company had paid the workers one –month salary for one-year working at the company.
Moreover, the company managers and the labor union have worked with to pay social insurance for the laid off workers as well as guided those who wanted to register unemployment insurance so that the city can have timely support on them.
It is scheduled that within seven days after ending labor contracts, the company will pay the laid-off workers salary, redundancy and leave money.
Director of the city Social Insurance Agency Phan Van Men affirmed PouYuen Vietnam followed Vietnam’s law on insurance. During its operation, the company has paid workers’ full social, unemployment and medical insurance according to the regulations.
The company pays around VND150 billion (US$ 6,460,261) for workers’ various insurance monthly; therefore, the laid-off workers will enjoy their benefit after the redundancy.
Deputy Chairman of Binh Tan District People’s Committee Do Dinh Thien said that local administration has had a meeting with the company director board upon the layoff as well as supervise policy implementation for 2,786 redundancies.
Before, the Ho Chi Minh City administration has agreed to suspend the operation of a large-scale manufacturing company for two days to minimize the risk of novel coronavirus disease (Covid-19) infection at the facility.

By Manh Hoa - Translated by Uyen Phuong

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