Phan Thị Nhiều (right) worries as she was unemployed due to her company’s decreased orders. — VNA/VNS Photos Hoàng Tuyết

HCM CITY — Phan Thị Nhiều was forced out of work when her company was dissolved. She has worked for Tỷ Hùng Company for nearly seven years.

Nhiều first went to HCM City with her mother to work when she was 17.

At first, her income was about VNĐ4 million (US$170) before increasing to VNĐ6.5 million ($278) per month.

With this income, she could only support her two children and cover their daily living expenses, but she was still happy.

“When the company let me go, I was shocked and disappointed. Being unemployed means my family life is even more precarious,” said Nhiều.

All activities in the family depend on her salary. Her husband is weak, so he only works lightly and earns little, Tin Tức (News) newspaper reported.

“We planned that this Lunar New Year holiday, if there is no income, we will stay in HCM City. I will also look for a new job so I can have work after Tết", said Nhiều.

In the same situation as Nhiều, Trần Thị Giúp, from Đồng Tháp southern province, said that she was old, so finding a new job was not easy.

Giúp had worked for the Tỷ Hùng Company for 18 years.

In the past few days, she has been working as a household assistant to earn extra income, waiting to find a new job that is suitable for her.

“For a long-time garment worker like me, finding a new job at 50 is difficult. Việt Tiến Company recruited workers, but it is too far from my house. They sew clothes, but I specialise in sewing leather and shoes, so it is difficult to apply for a job,” said Giúp.

Giúp used to sit to sew, but now other companies need workers to stand.

“I'm old and afraid I cannot stand all day. Therefore, it is not always possible to recruit new workers over 40 years old like me," she said.

Every night Giúp could not sleep because she was worried about making a living.

“Tết is almost here, but I don't dare to think about it. I am disappointed and sad because the road ahead is too difficult,” she said.

Orders plummeted

Explaining the laying off of more than 1,200 workers from December last year, Phạm Thị Út, deputy director of the Tỷ Hùng Company, said that the company's leather shoe orders were mainly from Europe.

Last year, the company’s orders were not stable. In the last months of the year, orders decreased by 70-80 per cent; only small orders remained.

"Being with workers for decades, we have always considered them our invaluable assets, so it was difficult for the company's leaders to let 1,200 workers quit. We tried to pay them enough benefits based on regulations," said Út.

Now the company has 658 workers remaining.

The same situation is being repeated across many enterprises in southern provinces.

The enterprises said it was a "very difficult thing to do" and caused them a headache.

Phạm Thị Châu, head of the Administration and Human Resources Department under the Vexos Việt Nam Co Ltd in the Tân Thuận Processing Zone in District 7, said that over the past months, the plant was unable to export goods.

If the current number of employees is maintained, their income will decrease much.

According to the HCM City Union of Business Association, orders in the main export markets of the textile industry, such as the US and Europe, have decreased markedly.

European orders decreased by 60 per cent, and the US decreased by 30-40 per cent.

From the fourth quarter of last year, it is forecast that enterprises will have no new customers in the first quarter of this year.

Bùi Thị Ninh, an official from the Việt Nam Chamber of Trade and Industry (VCCI) HCM City Branch, said that demand for footwear and clothing products of the European and American people, which is Việt Nam's main export market, decreased, so processing factories were severely affected.

Support

Tỷ Hùng Co Ltd, in the past days, has helped workers to complete procedures for unemployment subsidy.

A total of 914 out of 1,118 workers quitting jobs from the company have fulfilled the procedures.

Lê Thị Kiều Phượng, director of the HCM City Employment Service Centre, said that the centre quickly found some businesses suitable for workers of the Tỷ Hùng Company, salary from VNĐ7-12 million ($298) per month to introduce them.

Nguyễn Văn Lâm, deputy director of the HCM City Department of Labour, Invalids and Social Affairs, said that the city organised job introduction sessions to meet labour supply and demand.

It was expected that in the future, the city would recruit 43,000 workers, mainly in the fields of trade and services, he said.

Phạm Chí Tâm, deputy chairman of the HCM City Labour Federation, said that the trade union at different levels would give gifts, cash and train and coach tickets for workers to back to their hometown.

Tết bonus

An HCM City Labour Union representative gives gifts to poor workers before the Tết holiday.

Phạm Thị Hồng Hà, chairwoman of the Sài Gòn Food Joint Stock Company’s trade union, said that the company spent VNĐ40 billion ($1.7 million) to give Tết bonuses to workers.

On average, each of them will receive VNĐ16 million ($680). People with high professional skills will be rewarded with nearly VNĐ30 million ($1,279) per person.

“The company faced many difficulties but tried to ensure supportive policies for employees, soon announce Tết bonuses so that they can work with peace of mind," said Hà.

Nguyễn Văn Lâm, deputy director of the HCM City Department of Labour, Invalids and Social Affairs, said that more than 1,078 enterprises sent reports about their Tết bonus to the department.

On average, the Tết bonus for workers is nearly VNĐ12.9 million ($550) per person, 45 per cent higher than last year.

The highest Tết bonus is from electronics, information technology, finance, banking, commerce and food processing enterprises.

He said that despite difficulties due to decreased orders, enterprises still tried to give Tết bonuses according to bonus regulations and labour contracts.

Besides, 447 enterprises give different kinds of support to workers in addition to Tết bonuses, such as gifts, vouchers, lucky money and transport tickets.

Trần Thị Diệu Thúy, chairwoman of the HCM City Labour Federation, said that the Federation would organise ten programmes to take care of workers on the occasion of the Lunar New Year holiday.

Fund for the work is estimated at VNĐ140 billion ($5.9 million). — VNS