Businesses are facing difficulties, more and more workers are losing their jobs
Although there is no specific statistical report on the labor and employment situation in the province, following the difficulties that businesses have faced since the end of 2022 until now, actual developments show that in the second quarter of 2023, there have been and will be more workers laid off or unemployed.
Enterprises facing difficulties are concentrated in the processing of wooden furniture for interior, exterior, garden and plastic/imitation rattan products, which attract a large number of workers in the province. According to the Binh Dinh Timber and Forest Products Association, the decline and even complete loss of orders in major markets such as the US, EU, UK... is a difficult problem that the wood industry is facing.
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Workers of Binh Dinh Shoe Joint Stock Company working on the morning of May 11. Photo: HT |
According to Mr. Le Minh Thien, Chairman of the Binh Dinh Timber and Forest Products Association, by early March 2023, many enterprises had exported their last shipments and closed their factories; only a few factories had orders or agreed to produce a small amount of goods in advance to keep a part of workers and laborers. The number of new orders for wood enterprises is usually deployed in March every year, but this year it may take until the third quarter of 2023 to have a signal of new orders.
According to the latest update as of May 10 of the Provincial Economic Zone Management Board, out of 40 enterprises producing interior and exterior wooden furniture for export in the industrial park, only 10 enterprises still have production orders until the end of May 2023; 13 enterprises produce samples mainly to keep jobs for workers; 17 enterprises have stopped production (only office and machine maintenance departments remain).
“Compared to the end of 2022, the number of employees in enterprises producing interior and exterior wooden furniture has decreased by 65%, to only about 2,400 employees. For the plastic rattan weaving industry, 3/24 enterprises have temporarily suspended operations,” said Mr. Huynh Thanh Tung, Deputy Head of the Enterprise Management Department (Provincial Economic Zone Management Board).
The Department of Labor, Invalids and Social Affairs also said that the current situation of reduced employment and job losses is mainly concentrated in the wood processing and export industry; the leather and footwear industry is also facing difficulties in having to cut labor... Meanwhile, large enterprises in the garment industry, attracting a large number of workers in the province, are still operating stably.
At the end of April 2023, Binh Dinh Shoe Joint Stock Company sent a report to relevant departments, agencies and branches about the difficult business situation of the company, with no more orders from June to September 2023. After trying to hold on since the beginning of the year, the Company's financial situation is currently difficult, so it is necessary to reduce about 650 employees, including: 450 employees with fixed-term contracts (contracts will expire in May 2023), 200 employees with indefinite contracts.
According to Mr. Tran Van Khiem, Deputy Director of Binh Dinh Shoe Joint Stock Company, it was very difficult to come to the decision to reduce the workforce, because this was unprecedented in the Company's history. After reporting and receiving instructions from the Department of Labor, Invalids and Social Affairs on May 4, the Company will comply with the regulations and policies for workers when terminating labor contracts.
Mr. Khiem said: “From the beginning of May 2023 until now, the Company's leaders have continuously organized additional meetings to find solutions, seek new orders, and review the workforce. In the coming days, if the situation changes more positively, we can reconsider to adjust the number of workers to cut, trying to retain as many workers as possible, especially those who have worked hard and done well.”
Pursuant to Official Dispatch No. 1634/BLDTBXH-VL dated May 5, 2023 of the Ministry of Labor, Invalids and Social Affairs on reporting the labor and employment situation in the area under the direction of the Prime Minister, on May 8, 2023, the Department of Labor, Invalids and Social Affairs sent an official dispatch to relevant units and enterprises in the province requesting this implementation.
According to Mr. Huynh Ngoc Hai, Head of the Department of Employment and Vocational Education (Department of Labor, Invalids and Social Affairs), the report is implemented according to the outline and form attached by the Department of Labor, Invalids and Social Affairs, specifically stating the situation of labor and employment in the first 4 months of 2023, forecasting the situation and proposing solutions and recommendations to remove difficulties in the last 8 months of 2023.
“Units and enterprises must strictly implement this so that the Department of Labor, Invalids and Social Affairs can synthesize and specifically grasp the number of workers who have been laid off, lost their jobs, or had their working hours reduced in each industry. From there, there will be reports and recommendations to the Ministry of Labor, Invalids and Social Affairs and the Provincial People's Committee to continue to have timely support solutions, closely following the current difficulties of enterprises and workers in the province,” said Mr. Hai.
HOAI THU
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