VietNamNet Bridge – Some 1,700 out of 1,928 workers at the Korean-owned Texwell Vina Company, which has closed and whose managers have fled the country, have received unemployment benefits while more than 600 have found new jobs, Dong Nai Province authorities have reported.

Workers of South Korean textile company KL Texwell Vina meet with local authorities to discuss how to terminate their labour contracts since their employers failed to pay their salaries and have fled. — VNA/VNS Photo Le Xuan

The provincial People’s Committee on Sunday approved a payment of nearly VND1.4 billion (US$61,000) from the local budget to pay social insurance premiums, which the company had failed to pay since last August.

According to the province’s Labour Union, social insurance books have been returned to 1,700 workers while the rest have not received them. Almost 300 workers who have not received social insurance books might have returned home, but they would continue to receive help from provincial authorities to find a new job as promised.

Nguyen Hoa Hiep, deputy chairman of the People’s Committee, said the province has urged other local enterprises to hire Texwell Vina workers aged over 40.

Le Nhat Truong, president of the Trade Union of PouSung Viet Nam (Bau Xeo Industrial Park), said his company has taken in more than 600 workers.

Regardless of age they would be paid salaries of over VND5 million a month, bonuses and overtime pay when they start working by the end of next month, he said.

Earlier the province had shelled out VND7 billion to pay the workers half their January wages so that they could celebrate Tet (the Lunar New Year). Also the Viet Nam General Confederation of Labour gave them Tet gifts worth VND600,000 each.

On February 9 the workers had gathered to demand payment of their January salary, but were told that their general director and 11 executives had left for South Korea the previous day and so their salaries could not be paid.

Nguyen Thi Nhu Y, vice chairwoman of the Dong Nai Province’s Confederation of Labour, said Texwell Vina’s ex-workers are facing a lot of difficulties.

The confederation is keeping track of the number of pregnant and old workers and trying to convince other local enterprises to take them in.

So far 15 have agreed to hire them, she said.

Last week a meeting was held between representatives of the People’s Committee and the workers, and the former told the workers to write resignation letters and advised them on how to terminate their labour contracts and close their social insurance books.

The Trade Union Legal Consultancy Centre at the Labour Confederation has initiated file lawsuits against the company so that its machinery and other assets could be sold off to pay the workers’ salaries and other dues.

The unpaid social insurance premiums alone amount to more than VND17.5 billion ($771,750).

KL Texwell Vina is a South Korean-invested textile and garment manufacturer. It was set up in December 2015 with a charter capital of VND100 billion ($4.4 million). 

Source: VNS