VietNamNet Bridge – A hat manufacturer in southern Dong Nai Province has unilaterally terminated its work contract with nearly 1,900 workers after a recent fire damaged company's machine, the online Dan Tri newspaper reported.

Workers gathered in front of Yupoong Company on Monday in a reaction to contract termination decision of the company. — Photo dantri.com.vn

Thousands of workers gathered in front of the company on Monday to protest against the decision.

Bien Hoa City-based Yupoong Company released a notice on Saturday saying that a fire which occurred on September 21 destroyed one factory, which ceased operations, and affected work in the second.

The company decided to terminate the contracts of almost all workers as a result of the fire, it said.

"A fire destroyed factory 1, but it damaged the machines in both factory 1 and 2. As a result, workers were unable to do their jobs and we had to terminate the services of nearly 1,900 people," head of the company's trade union, Nguyen Thi Ut said.

"The company retained only 400 workers in the embroidery department and warehouse," Ut said.

The notice also said salaries, allowances and redundancy payments of workers would be paid in full.

In addition, each worker would receive an extra month's salary, and a social insurance book, while the contract termination procedures would be sent to all workers by post, the notice said.

The management board of Dong Nai industrial zones instructed that in this case the company could encourage workers to willingly quit the job.

Under the regulation of the Labour Legal Code, the company could also terminate contracts as a result of the fire, and added that employers had sought ways to deal with the consequences but they failed and had to downsize operations and reduce employees, the management board said.

The blaze occurred on September 21 in Yupoong Company, of Bien Hoa city, in southern Dong Nai province, and destroyed factory 1.

VNS