Labor market at year’s end: Increasing connection, stabilizing jobs

In recent weeks, many workers in Ho Chi Minh City have struggled when they were laid off. According to the Confederation of Labor of HCMC, currently, more than 30,150 laborers are at risk of losing their jobs, having their working hours cut, and being rearranged their jobs at the end of the year.
Labor market at year’s end: Increasing connection, stabilizing jobs ảnh 1 Workers of Ty Hung Company are worried when their labor contracts are terminated. (Photo: SGGP)
Being unemployed when Tet is coming

Nguyen Thi Tien, from Ca Mau Province, said she had worked at Vietnam Samho Company in Cu Chi District for nearly ten years. However, at the beginning of November 2022, she and more than 1,400 other workers were anxious when they received a notice that the company faced difficulties that it had to cut labor. Those who work for less than one year, when it is time to renew the contract, they will be laid off and will not be entitled to any benefits. Long-term workers are allowed to take a temporary unpaid leave until the company has a job, it will call them back to work; Those who cannot wait can quit the job. "I do not know how long I need to wait to get a job, but I cannot quit my job to find another because the company will not pay unemployment benefits or year-end bonuses," Tien said sadly.

To make ends meet, Tien has to do many more jobs, from picking chili peppers to washing dishes for the restaurant. Although she does many part-time jobs at the same time, she only earns about VND500,000 per week. “In the past, working as a worker earned VND8-9 million per month. After deducting living expenses, there was still a small amount of money to send home for my children. Now I can only earn just enough for me to stay in the city. If the company does not have orders soon, I will have to stay in HCMC this Lunar New Year, but I don't dare to go back to my hometown," Tien sighed.

Similarly, Phan Thi Tuyet, from Binh Thuan Province, a worker at Sun Ky Oung Vietnam Garment Company in District 12, had to seek jobs everywhere because her company would dissolve. Tuyet said that due to not having orders for a long time, from the end of October 2022, the company announced to stop operating and dissolve as of November 10. Despite being sad, she and more than 800 workers had to accept and share difficulties with the company. "There are only more than two months left until Tet, and now I am unemployed. If I cannot find a new job soon, I do not know where to get the money to send my family," Tuyet confided.

In the same situation, since Ty Hung Company in Binh Tan District announced that it would terminate the labor contracts for nearly 1,200 workers, starting from December 1, Lieu Thi Ha, from Tra Vinh Province, had to work many jobs to earn enough money to take care of her two children. “It is so hard when both my husband and I lose jobs at the end of the year like this. I have to wash dishes and work as a housemaid, and my husband drives a motorbike taxi. We try to earn as much as we can because we do not have any land or work in our hometown," Ha shared.

Ensuring the rights of workers

According to a representative of Ty Hung Company, the company has had no orders in the last two months. Despite applying many measures, the company could not resume operations, so they had to reduce production and cut 1,185 out of 1,832 workers in the production sector and some units indirectly serving production from December 1. He also said that the enterprise pledged to pay a job-loss allowance equal to two months' salary to all laid-off workers. Those who have worked from 2008 or earlier will be paid a severance allowance according to regulations. In addition, the company will also pay a bonus in 2022 with a level of one month's salary for workers who have worked for 12 months. The bonus will be calculated according to the actual working time in a year of the employee.

For more than 800 workers of Sun Ky Oung Vietnam Garment Company in District 12, the Department of Labor, Invalids, and Social Affairs in District 12 said that the company provided two months’ salary support for workers with actual working time from December 31, 2008, backward and one month's salary support for those whose actual working time is from January 1, 2009, onward. To solve jobs for workers of this enterprise, District 12 has contacted other businesses that are in need of recruiting workers. Currently, some businesses have agreed to accept workers from Sun Ky Oung Vietnam Garment Company.

Meanwhile, after Vietnam Samho Company in Cu Chi District announced the layoff of more than 1,400 workers, the HCMC Department of Labor, War Invalids, and Social Affairs, in coordination with related units, organized dialogue sessions between the company and workers. According to the reporter, the company has agreed to support VND2 million for each laid-off worker, the company's Trade Union has supported VND500,000, and the Labor Federation of Cu Chi District has supported VND500,000 each. In addition, female workers, who are over 40 years old and have worked at the company for full ten months or more, will be kept working until the labor contract expires. For workers who have worked for less than 12 months, the company has committed to maintaining jobs so that these workers are eligible for unemployment benefits.

Mr. Le Dinh Duc, Vice Chairman of the People's Committee of Cu Chi District, said that after Vietnam Samho Company announced to cut labor, the district worked with businesses that need to recruit workers to connect jobs. Thereby, six enterprises that need to recruit nearly 1,500 workers have agreed to accept the laid-off workers of Samho Company.

Mr. Nguyen Van Lam, Deputy Director of the Department of Labor, Invalids, and Social Affairs of HCMC: Connecting for workers to find new jobs soon

Due to the influence of the fluctuations of the world market, some footwear and garment processing enterprises for export have faced difficulties and have not had orders, so they are forced to rearrange, reorganize, and reduce labor. Upon receiving the news that enterprises are facing difficulties and have to reduce labor, the HCMC Department of Labor, Invalids, and Social Affairs has requested the HCMC Employment Service Center and departments to coordinate with localities to work directly with business owners and grassroots trade unions to grasp the situation and the wishes of workers to have a support plan.

The HCMC Department of Labor, Invalids, and Social Affairs has organized job exchanges, vocational training counseling, and job placement to create favorable conditions for workers to have more opportunities to find jobs and return to the labor market soon. In addition, the HCMC Department of Labor, Invalids, and Social Affairs connects the employment service centers of the provinces to introduce jobs for workers who want to return to their hometowns to work. To stabilize the employment situation in the year-end period, the department has directed the HCMC Employment Service Center to organize job exchange sessions and floors to connect labor supply and demand, especially in areas where enterprises rearrange laborers to quickly advise and provide recruitment information of businesses, thereby supporting workers to find new jobs.

Mr. Nguyen Thanh Do, Head of the HCMC Labor Federation's Policy and Law Department: Supporting workers who lost their jobs

Reports of trade unions at all levels show that up to now, more than 30,150 employees in 154 enterprises are at risk of losing their jobs, having their working hours cut, and being rearranged jobs at the end of the year.

The HCMC Labor Confederation has directed trade unions at all levels to review the units that owe social insurance and salary and reduce production to have a direction to solve the benefits for employees, especially paying attention to long-term workers, workers over 40 years old, and workers who are raising small children to ensure their rights according to regulations. Besides monitoring the issue of salary payment, closing the social insurance books, unemployment, and vocational training regimes for a job change, trade unions at all levels have also stepped in to take care of workers who face difficulties due to job loss. The HCMC Confederation of Labor also prepared a plan to support workers who lost their jobs before, during, and after Tet; connect businesses so that workers who lose their jobs can find suitable jobs soon.

Mr. Nguyen Quoc Thanh, Deputy Director of HCMC Social Insurance: Settling quickly social insurance records for unemployed workers

HCMC Social Insurance has directed the Social Security of districts to grasp the situation of employees participating in Social Insurance and arrange people to coordinate with the human resources departments of enterprises to receive, settle, and create the most favorable conditions in closing the social insurance dossiers for workers who have lost their jobs. In addition, HCMC Social Insurance also cooperates with relevant agencies to create favorable conditions for workers to complete dossiers for unemployment insurance benefits.

For employees who quit their jobs, Social insurance settles according to the principle of how long social insurance is paid, it is confirmed to such extent. In case the enterprise wants to pay in advance the amount of social insurance debt, the HCMC Social Insurance will facilitate quick settlement, confirming up to the time the enterprise has paid in advance.

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