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Vietnam-based Taiwanese shoemaker lays off 10,000 just days ahead of Tet

Vietnam-based Taiwanese shoemaker lays off 10,000 just days ahead of Tet

Thursday, January 31, 2019, 14:28 GMT+7
Vietnam-based Taiwanese shoemaker lays off 10,000 just days ahead of Tet
The entrance of My Phong Leather Shoe Company in the Mekong Delta province of Tra Vinh. Photo: A.X / Tuoi Tre

A Taiwanese shoemaking company in Vietnam’s Mekong Delta has laid off more than 10,000 of its workers on Tuesday, leaving the laborers in shock as the Lunar New Year, the country’s biggest public holiday, is only a few days away.

The People’s Committee in Tra Vinh Province confirmed on Wednesday that a delegation of officials has been established to monitor the case where My Phong Leather Shoe Company dismissed 10,142 out of 19,857 of its workers.

Specializing in manufacturing shoes for exports, My Phong is a Taiwanese firm whose legal representative is Hsu Kuang Tien.

A probe by Tuoi Tre (Youth) newspaper revealed that a major partner of My Phong, which previously accounted for 70 percent of the firm’s orders, is facing bankruptcy and still owes My Phong nearly US$100 million.

The board of directors decided to cease all orders from this partner, thus the shoemaking firm has to shut down three of its factories on Tuesday afternoon, which led to the mass layoff.

Workers wait in front of the company for the official list of the sacked employees. Photo: A.X / Tuoi Tre
Workers wait in front of the company for the official list of the sacked employees. Photo: A.X / Tuoi Tre

Under the supervision of the provincial labor federation, My Phong Company has pledged to ensure the rights and benefits of the affected employees.

The firm promised it will pay the salary for January and February, bonuses for the 2019 Lunar New Year (Tet) holiday, and job loss allowance.

It will also help the workers carry out procedures for social insurance and unemployment insurance.

My Phong added it does not dismiss 627 laborers who are on their maternity leave.

Leaders of the Tra Vinh People’s Committee and Party Committee have directed competent authorities to assist the affected workers in looking for a new job.

Certain measures will be taken to prevent opposing force from taking advantage of the situation to stir up riot among the laborers ahead of the Lunar New Year, which falls on February 5.

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