Tens of thousands of workers lost their jobs, which industries are "dead zones"?

Orders plummeted

During a recent meeting between the Department of Labor, War Invalids and Social Affairs of Ho Chi Minh City, the leader of Pouyuen Vietnam Co., Ltd., the enterprise employing the largest number of workers in the city (over 50,000 people), said that due to a decrease in orders, the unit plans to terminate labor contracts with about 10% of its employees in the near future.

In the first phase, the company will terminate labor contracts with 4,519 employees at the end of June. In the second phase, the company will terminate labor contracts with 1,225 employees at the beginning of July. The total of the two phases is 5,744 employees.

Previously, in February 2023, due to the difficult order situation, the company had to cut 2,358 workers. In addition, from November 2022, the company also had to let nearly 20,000 workers take turns off work on 2 weekends to ensure everyone had work.

This company with the largest number of workers in Ho Chi Minh City operates in the leather and footwear industry. In this industry, not only has Pouyuen cut and laid off workers, but many other businesses are also in a similar situation due to lack of orders.

According to a report by the Department of Labor, War Invalids and Social Affairs of Dong Nai province, in the first 4 months of 2023, 181 enterprises and cooperatives were affected in production and business and had to cut labor, mainly foreign-invested enterprises.

The cause is due to the negative impact of the world situation, the supply of raw materials, the export of goods is affected, the inflation in Europe and North America forces people to cut down on consumption... This negatively affects the production and business of enterprises, orders have decreased sharply.

According to the Department, more than 100 businesses are making efforts to implement solutions to retain workers through difficult times, such as agreeing to terminate labor contracts for 32,400 workers; reducing working hours for about 35,000 workers; suspending labor contracts for nearly 1,500 workers; paying severance pay to 500 workers...

Through general assessment, enterprises in the fields of wood processing for export, leather footwear and accessories are most heavily affected.

Hàng chục nghìn công nhân mất việc, ngành nghề nào đang là tử địa? - 1 — Many workers' jobs are affected because the company has reduced orders (Illustration: Huu Khoa).

According to the Department of Labor, War Invalids and Social Affairs of Bac Giang, there are more than 7,200 businesses operating in the area, with 286,220 employees. Notably, the number of employees decreased by 6.5% compared to the same period in 2022.

Some enterprises operating in the field of electronic component processing and assembly, textiles and garments have encountered difficulties in production and business, had to cut labor or reduce working hours, and temporarily suspend labor contracts. According to statistics, in the area, 27,506 workers have been affected in terms of jobs and income, of which 18,230 have lost their jobs.

According to the Department of Labor, War Invalids and Social Affairs of Thai Nguyen province, 3,786 workers in the textile, electronic components and products manufacturing, wood processing... industries have had their jobs affected.

Try to ensure workers' rights

According to the Department of Labor, War Invalids and Social Affairs, due to economic difficulties, many businesses have reached agreements with employees to temporarily suspend labor contracts; reduce overtime hours, agree on annual leave, and a few businesses have cut labor.

Enterprises all develop labor use plans according to labor law regulations.

In cases where labor contracts are forced to be terminated, businesses develop and implement plans to pay unemployment benefits and commit to hiring these workers when production and business return to normal. In addition, businesses continue to promote the search for and sign new orders to retain workers.

In general, although industries are affected, the level of difficulty for each enterprise depends on the market that the enterprise processes, exports, and supplies raw materials for production...

According to the assessment, despite facing difficulties, businesses are still basically trying to ensure workers' rights according to regulations.

These units have made efforts to maintain the workforce while waiting for production to resume. In the process of developing plans for labor arrangement and use, the enterprises have consulted with the Department of Labor - Invalids and Social Affairs, the Industrial Park Management Board, and the Provincial Labor Federation. From there, these units will guide enterprises to have the most optimal plan to ensure the rights of workers.

Previously, the Government Office issued a document conveying Prime Minister Pham Minh Chinh's direction on the situation of unemployed workers.

Accordingly, the Prime Minister assigned the Ministry of Labor, War Invalids and Social Affairs to grasp the actual situation of unemployed workers to proactively and promptly implement solutions according to regulations; promptly report to the Government and the Prime Minister on contents beyond its authority.

The Ministry of Labor, War Invalids and Social Affairs was also assigned to preside over and coordinate with relevant agencies to develop a project to issue policies to support workers and report to the Prime Minister before May 15.

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