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Vinashin seeks to lay off thousands

Update: September, 18/2013 - 08:51
Vinashin will cut down nearly 14,000 employees following its restructuring plan.— File Photo

HA NOI (VNS)— Minister of Transport Dinh La Thang has asked leaders of the Viet Nam Shipbuilding Industry Corporation (Vinashin) to guarantee the rights of 14,000 dismissed workers, as it announced the lay-off as part of its restructuring plan at a meeting with the ministry on Monday in Ha Noi.

Cutting thousands of employees could have a huge impact on society and the economy, the minister said.

The restructuring plan was approved in 2010, after Government inspectors uncovered Vinashin's financial malpractices. At the end of 2009, the group was more than VND86.7 trillion ($4.1 billion) in debt.

In the first phase, the corporation plans to lay off 8,000 employees. After the second phase, only 8,000 will be left.

A representative from Vinashin's Department of Labour-Wage told Biz Hub: "Each company operates in a different business sector and uses a different operating model. So each company will classify its own employees and send the list to the corporate department of labour. This evaluation process is open, transparent and democratic." Economic expert Nguyen Minh Phong said that Vinashin needed to decrease multisectoral investment to get out of debt, which led to the mass dismissals.

"Dismissing workers must be carried out in public. The information must be open and the process of selecting employees to be let go must be fair and carefully supervised," he said.

"Vinashin can also choose a flexible option such as decreasing working hours."

Besides implementing the employee-restructuring plan, Vinashin will focus on restructuring its debt as well as business production, operation and management. In the first eight months of 2013, the corporation handed over 20 out of 69 ships. Its revenue reached VND2,700 billion (approximately US$128 million), or 39.67 per cent of the yearly target. — VNS

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