Workers gathered in front of the Tuan Vinh Garment Manufacturing and Trading Company Limited (District 12), formerly the factory of DV Fashion Garment Manufacturing and Trading Company Limited, demanding payment of outstanding wages - Photo: Provided by the workers.
Workers fear the company is liquidating its assets.
The workers said the factory's name had changed three times, but they thought the company had simply changed its name and didn't know that the company had also changed ownership.
Ms. N. (a worker for the past 4 years) said that the company changed its name three times, but the work remained the same, and she was still paid regularly. It was only at the beginning of this year that they started withholding her salary.
"Everyone thought the economic situation was difficult and understood. Last week, the company suddenly announced a power outage and gave us time off. But then we heard the company was moving all its machinery to close down, so we went to the factory to demand our back wages."
"When the government officials came to investigate, we found out that the company director wasn't the same director as before, but the person who used to sell drinks at the company canteen," Ms. N added.
According to a preliminary report from the Department of Labor, War Invalids and Social Affairs of District 12, Tuan Vinh Production and Trading Co., Ltd. promised to pay wages on March 25th. However, when the workers arrived, the director was not present, and only an authorized representative was there to handle the matter.
Accordingly, the workers requested the company to pay the outstanding wages of approximately 1.3 billion VND. This includes the managers' salaries, comprising part of their December 2023 salary, January and February salaries, and 20 working days of March 2024; and the workers' salaries, comprising their February salary and 20 working days of March 2024.
During the meeting, the company representative stated that they were facing financial difficulties and asked the workers to wait until April 10th to find a partner to take over the factory and secure funds to pay their salaries. If they were unable to take over the factory, they would liquidate assets to settle the outstanding wages.
Contacting Mr. Trinh Xuan Hung (the authorized representative of Tuan Vinh Company) on March 25th, Mr. Hung stated that he was in charge of administration and human resources. He was authorized to work with the employees, but the business owner subsequently revoked this authorization.
"I am also owed approximately 100 million VND in salary by the company since the end of 2023. I know the company changed ownership, but I still work for a salary as directed by the board of directors."
"We workers now want an inventory of assets to avoid a situation where the company liquidates everything, making it impossible to settle outstanding wages," Mr. Hung said.
The manager is a security guard and a canteen vendor.
According to the workers, the company was initially named Ha Nam An 3 (Ha Nam An 3 Garment Manufacturing and Trading Company Limited) and was owned by Mr. Quan Van Phuoc.
Later, the company changed its name to DV Fashion (DV Fashion Garment Manufacturing and Trading Company Limited). Most recently, it changed its name again to Tuan Vinh Garment Manufacturing and Trading Company Limited. However, the work and workplace of the employees have remained virtually unchanged.
According to the records, DV Fashion Company, represented by Mr. Ho The Xuan as its legal representative since December 2023, shares the same business registration number as Ha Nam An 3 Company. However, employees say that Mr. Ho The Xuan is only a security guard at the company.
Meanwhile, Tuan Vinh Company, according to its business registration certificate, was newly established in December 2023. Mr. Le Van Tuan is the company representative, but the workers know him as the person selling drinks at the canteen.
Workers say that social insurance contributions are still being deducted from their wages but are not being paid to the social insurance agency. They demand that the company pay both outstanding wages and social insurance contributions from the end of 2022 to the present.
On March 29th, company representatives met with labor mediators and employees regarding unpaid wages and social insurance contributions. However, they are still in the process of gathering information from the employees to determine a solution.
"We just want to get our wages back so we can pay for rent, take care of our children, and finalize our social insurance records to find new jobs."
"But if the company tries to sell off all the machinery and dispose of its assets during the settlement period, how will we workers receive our money?" worried Ms. LTH.
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