Pou Yuen plans to cut nearly 6,000 workers

With orders decreasing, the company with the largest number of employees in Ho Chi Minh City, Pou Yuen, with more than 50,000 workers, will reduce nearly 6,000 employees, after cutting more than 2,300 people in February.

At a recent meeting with the city’s functional departments, leaders of Pou Chen Vietnam Group and Pou Yuen Vietnam Co., Ltd. (Binh Tan District) said that the number of processed brands has decreased, forcing the factory to reduce its workforce. Since the end of last year, the factory has had to adjust its production plan, arrange for workers to take turns off work, agree to stop work, and assign workers to production workshops.

Pou Yuen workers get off work in mid-October 2021. Photo: Thanh Nguyen — Pou Yuen workers get off work in mid-October 2021. Photo: *Thanh Nguyen*

It is expected that in this round of layoffs, the company will lay off 5,744 workers with indefinite contracts, equivalent to 10% of the total 50,500 employees. Workers will be laid off in two batches, the first on June 24 with 4,519 people and the next on July 8 with 1,225 people. This is considered the largest-scale layoff since Pou Yuen started operating in Ho Chi Minh City in 1996.

Retired workers are supported with 0.8 months of salary for each year. The payment is calculated as the average of the 6 consecutive months before retirement. For example, the average salary of the 6 consecutive months of a worker with 20 years of seniority is 12 million VND, the annual subsidy will be 9.6 million VND. The total amount of money the worker receives for 20 years of work is 192 million VND.

In addition, during the notice period for contract termination, employees who do not come to the factory will still be paid, pay social insurance, health insurance and unemployment insurance... Payment time is within 7 days from the date of termination of the labor contract for 2 installments on June 30 and July 14.

Pou Yuen does not include pregnant employees, employees on maternity leave, employees with children under 12 months old; poor households, employees with disabilities... in the contract termination list. The company will meet with employees to inform them about related issues such as how to pay severance pay, salary date, social insurance book, and tax procedures.

Ms. Nguyen Thi Ha, who has worked in area C for more than 15 years at Pou Yuen, said that the workforce being reduced this time is mainly in areas C and D. The company has distributed resignation registration forms to employees. Those who want to continue working will be transferred to area K. Ms. Ha and her husband both registered to resign in this round of cuts.

Pou Yuen, part of Taiwan’s Pou Chen International Group, operates in the shoe manufacturing sector and is the largest employer in Ho Chi Minh City. In February, Pou Yuen laid off 2,358 workers, also due to a lack of orders. This is the third large-scale layoff at the city’s largest employer. In June 2020, more than 2,800 workers were laid off at the company.

The Ho Chi Minh City People's Committee has directed departments, branches, and Binh Tan District to closely monitor and supervise the production and employment situation of workers at this company. The city also requested relevant units to grasp the thoughts and aspirations of workers and support them... The employment service center coordinates to connect and introduce jobs to unemployed workers.

The situation of labor cuts also occurred in some enterprises in the context of economic difficulties. According to a survey by the Department of Labor, War Invalids and Social Affairs of Ho Chi Minh City on the labor needs of nearly 4,000 enterprises in the first quarter, compared to the end of last year, nearly 31% reduced labor, over 50% remained the same, did not recruit new workers and about 19% increased labor. The group of labor cuts was mainly in the fields of footwear, textiles, construction, food processing...

Le Tuyet

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