A leather shoe manufacturing company in Nghe An Province, Vietnam has agreed to increase the basic salary of all employees by six percent after more than 5,000 workers staged a strike at the firm earlier this week.
Nguyen Chi Cong, vice-chairman of the provincial labor confederation, confirmed on Saturday that the agency had had a meeting with authorities in Dien Chau District and leaders of Viet Glory Company.
At the session, Viet Glory Company decided to increase the basic salary by six percent for all employees starting February, while raising the seniority allowance for those who have worked for one year and over.
With this latest decision, workers at the firm will have VND200,000 (US$8.8) added to their basic salary each month.
This means that the company will have to spend over VND1 billion ($44,000) more every month to pay its staff.
The board of directors asked all workers to return to work on Monday.
If any employee still refuses to resume work, the company will handle each case in accordance with the labor law.
|Leaders of Viet Glory Company negotiate with their employees in Nghe An Province, Vietnam, February 10, 2022. Photo: Doan Hoa / Tuoi Tre|
At the meeting, Viet Glory also complained about several difficulties it has been facing, including rising prices of raw materials, more production, operating, and management costs, as well as low profits.
The labor confederation vice-chairman believed that the company has answered all the questions raised by its employees.
He called on all workers to return to work in order to ensure their incomes as well as the production process.
More than 5,000 workers staged a stoppage at Viet Glory Company on February 7, the very first day they went back to work after the Lunar New Year holiday.
The striking workers complained that the current base salary and seniority allowance are too low, rendering their monthly income insufficient to make ends meet.
Leaders of the company had tried to negotiate with their employees but the efforts were in vain as the workers said they would only go back to work if the firm raised their basic salary and seniority allowance.