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Numerous businesses fire workers, others don’t pay salaries

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As capital gets exhausted, numerous enterprises have to scale down their production and cut down the labor force. Other enterprises do not sack workers, but encourage them to resign from the posts, or delay salary payment.


Hanh, an officer of a construction company in Hanoi, said she has not received her salary since late 2011. In fact, Hanh receives money every month, but the sums of money are very small, just a part of the monthly salary. Meanwhile, the managers of the company have stated that the company would not pay salaries to workers for the next six months, and that those who cannot hold out, should resign from the posts.

“The company cannot get contracts; therefore, it does not have money to pay bank debts. Any money transferred to the company’s account would be withheld by banks. Therefore, the company cannot pay workers,” she said.

She went on to say that she has to take an extra job to earn extra money to feed the family. She goes collecting Internet fees in the evening, which can bring a modest income, but really important for her now.

Thanh, an officer of a real estate firm in Binh Thanh district of HCM City, complained that the company laid off a lot of workers after Tet, but it does not offer any allowances. To date, the company still has not given a clear answer for the deadline for debt settlement.

Meanwhile, Thanh complained he cannot ask for unemployment allowances, because the company did not pay employment insurance premiums in recent months.

Thanh has petitioned the Binh Thanh district’s Sub-department for Labors and Social Affairs, asking for intervention. He is going to meet the representative of the company next week to for negotiation. If the two sides cannot reach any agreement, Thanh would take legal proceedings against the company.

The workers, who cannot receive their salaries at this moment, still cherish the hope that they would receive money later, when the economic difficulties ease and companies get more jobs. Meanwhile, many of them understand that if the situation cannot be improved, they would become redundant one day.

Nguyen Van Son, Director of a private construction company, said that the company has cut down 30 percent of the labor force since October 2011. Meanwhile, the workers, who stay with the company, only receive 50 percent of their salaries because the company has not obtained any contract recently.

According to Dang Minh Luom, Personnel Director of The Gioi Di Dong, a mobile phone distribution chain, said that the company still can pay salaries to 7000-8000 workers, estimated at 17-18 billion dong a month. However, the company has cut off the regular bonuses.

In previous years, the workers of The Gioi Di Dong received extra sums of money in mid and at the end of the years. However, since the business has got worse, they cannot receive the bonuses more.

Nguyen Van Thuyet, President and General Director of Song Da Dat Vang, admitted that the enterprise has been facing difficulties since 2011. The company can only advance some money to workers. It still owes hundreds of millions of dong to workers, social insurance agencies.

Thuyet said that in fact, the sum of money is not a big problem for the company. Song Da Dat Vang has completed some construction works, but it still cannot get payment from the partners, who are also in distress because of the lack of money. The company has promised to make payment to laborers by the second quarter.

Source: VnExpress/ VNN

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