Strike at Viet Glory Co., Ltd.: Concerns stemming from a 'bad precedent'

Third strike

The strike of nearly6,000 workersViet Glory Co., Ltd. has been causing a stir in public opinion in recent days. Notably, this is the third strike at the company, even though it has only been in operation for three years.

Accordingly, after lunch on October 2nd, thousands of workers at Viet Glory Co., Ltd. gathered in the parking lot and simultaneously left, refusing to work the afternoon shift. When the incident occurred, the Dien Chau District Labor Union and other relevant district authorities were present to understand the workers' concerns and gather their opinions.

After working separately with worker representatives, the trade union recorded eight groups of employee requests and forwarded them to company management. The two main issues were increasing the basic wage and reviewing the piece-rate system. The remaining issues concerned other employee benefits such as hazardous work allowances, maternity leave, attendance fines, meeting times, management attitudes, and timekeeping mechanisms.

On October 2nd, Viet Glory Co., Ltd. issued a statement responding to the workers' requests. Specifically, the company's leadership stated that, according to regulations, the minimum wage that Viet Glory Co., Ltd. must pay its workers is 3,640,000 VND/month. Currently, the company is paying its workers 4,130,000 VND/month, which is higher than the regulated amount. The current difficult business and production situation does not allow the company to adjust the basic wage higher, and the company hopes for the understanding and cooperation of its employees.

Regarding the production issue, the company did not provide a clear explanation but only offered a temporary solution: To boost employee morale and increase income to ensure a decent standard of living, the company decided to increase production bonuses for all factory employees on October 1, 2023.

Several suggestions regarding the work attitude of management staff, timekeeping systems, meeting times, etc., have been accepted and adjusted by the company. The company also promised to consider and resolve two suggestions regarding increasing the number of people eligible for hazardous work allowance, and increasing the hazardous work allowance and 13th-month bonus in the near future. In this announcement, the company's Board of Directors also requested all workers to return to work on the morning of October 3rd. Workers who do not report to work will be dealt with according to the law and company regulations, and workers who take 5 days of unauthorized leave in a month will be dismissed.

Following this announcement, in the days that followed, workers at Viet Glory Co., Ltd. continued to gather in front of the company gate instead of returning to the factory to work. On October 4th, an inter-agency delegation, including representatives from the Nghe An Provincial Labor Federation, the Department of Labor, War Invalids and Social Affairs, and other relevant agencies and departments, was present to directly dialogue with the workers and understand their aspirations. The delegation also urged the workers to return to work as soon as possible to ensure their wages and income, as well as to maintain the company's production activities.

After engaging in dialogue with the workers, the working group also held discussions with the business owner regarding the workers' requests and concerns. Concluding the meeting on October 4th, the working group requested that the company, the District Labor Union, and the District Department of Labor, War Invalids and Social Affairs of Dien Chau District coordinate to issue a notice summarizing the results of the meeting, disseminate the notice's content to the workers, and encourage them to return to work as soon as possible. Furthermore, after the situation stabilizes, the Dien Chau District People's Committee should establish an inter-agency inspection team to conduct a comprehensive inspection of the implementation of labor laws at Viet Glory Co., Ltd.

Previously, on February 16, 2021 (the 5th day of the Lunar New Year), more than 1,400 workers of Viet Glory Co., Ltd. also staged a collective work stoppage to demand their rights. After some of their demands were addressed, the workers returned to work normally on February 18, 2021. Following the intervention of the Dien Chau District Labor Union and the Nghe An Provincial Labor Union, the company established a grassroots trade union in March 2021.

One year later, on February 7, 2022, the first day back at work afterLunar New Year holidayIn the year of the Rabbit (2013), nearly 5,000 workers at this company continued their strike to demand their rights be protected. By February 13, 2022, the workers had returned to work after their demands were addressed by the company, including a 6% increase in basic salary and additional seniority pay for those who had worked for one year or more.

"There's no need to resort to this measure."

During the meeting with the inter-agency delegation on the morning of October 4th,Company leadersViet Glory Co., Ltd. stated: “Workers can directly submit these suggestions to the company for consideration and appropriate amendment. It is not necessary to resort to this last resort (strikes). Indeed, from the information gathered by the inter-agency team, it is clear that many of the suggestions stem from workers' lack of understanding and awareness. More accurately, there is a lack of connection, communication, and dialogue between workers and the company to understand each other and find common ground.

Specifically, many workers complained that high production quotas forced them to work longer hours to meet the standard targets, which should have been considered overtime. Furthermore, production quotas were not fixed but consistently increased on subsequent production days.

In response to this issue, the company's leadership affirmed that the production quota system follows a systematic process. Upon receiving a new product sample, the technical department produces a sample, checks it, calculates the working time, and then applies a production quota to all companies within the group. Accordingly, in the initial days of producing the new sample, workers are unfamiliar with the process, resulting in low production. However, as they become more proficient, production must gradually increase to meet the group's target. Currently, the company's production only reaches 50-70% of the targets set by other companies in the group.

Regarding maternity leave, workers reported that female workers in hazardous departments who become pregnant are transferred to other departments and have their hazardous work allowance cut. Pregnant women from the seventh month onwards are not allowed to leave one hour early as per regulations and are forced to take early maternity leave. The company representative responded that, according to regulations, pregnant workers will be transferred to less strenuous production departments to ensure their safety and will still be allowed to leave one hour early. From October 2023, the company committed to not requiring maternity leave for pregnant workers up to the seventh month. At the same time, workers must commit to ensuring their own health to avoid negatively impacting the business.

Regarding hazardous work allowance,WorkerThey argued that it was unfair for some workers on the same production line to receive hazardous duty allowance while others did not. The company responded that even on the same production line, some departments will have hazardous work and others will not. Furthermore, eligibility for hazardous duty allowance depends on the type of work performed, and only workers who pass a skills test will be eligible.

Regarding the alleged practice of forcing workers to start work 10-15 minutes before their shift begins, the company responded that there was no such thing as forcing workers to work overtime, and that they would investigate who made this request and take appropriate action.

Regarding the issues raised, the inter-agency delegation questioned why workers were unaware of the company's regulations and procedures, why the company did not explain and clarify the issues from the beginning, and why it did not publicly disclose its long-term plans to the workers. In response to the inter-agency delegation, the company promised to disseminate relevant information to workers in the future, such as the specific hazardous work areas on each production line and the production quota application process.

The company's leadership also added that, despite placing suggestion boxes on the production lines, in areas out of camera view, they had not received any suggestions or questions from workers. If they had received them, they would certainly have addressed the issues promptly. To ensure accuracy in information dissemination, the company will hold meetings in each department.

Previously, during the 2023 Lunar New Year holiday, trade unions at all levels in Nghe An province conducted a survey to assess the situation at this enterprise and noted the stability of labor relations. Although orders decreased, the company still sought additional orders from other companies to maintain work and ensure income for its workers. A representative of the enterprise also stated that the company is preparing to implement phase 2 of construction with a larger factory.

“It would be very worrying if workers thought that every conflict could be resolved by striking, and that striking would guarantee the fulfillment of all their demands. Strikes cause significant losses for businesses, workers, and the province's investment environment. Workers need to wisely discern right from wrong, think long-term, and find solutions that benefit all parties,” said Mr. Nguyen Chi Cong, Vice Chairman of the Provincial Labor Union. As a trade union organization, Mr. Cong hopes that businesses and workers can find common ground, based on harmonizing interests and complying with legal regulations and the company's current capabilities.

On October 6th and 7th, nearly 1,500 workers resumed work after receivingdirectionby the Provincial People's Committee and through the efforts of trade unions at all levels.

Also on October 7th, Comrade Ha Xuan Quang – Member of the Provincial Party Committee, Secretary of the Dien Chau District Party Committee, and representatives from district-level departments and agencies held a working session with the Board of Directors of Viet Glory Co., Ltd. to discuss solutions. According to the plan, on the morning of October 9th, relevant agencies and organizations will continue to encourage workers to return to work.