What is the solution for workers who lose their jobs near Tet?

The world economy is experiencing many negative fluctuations, consumer demand is decreasing, input material and transportation costs are increasing, affecting the production and business activities of enterprises in the province. Some enterprises producing export goods, especially in the textile and footwear industry, have seen a decrease in orders compared to early 2022. Many factories have had to close due to lack of orders, many workers have lost their jobs, stopped working, and are struggling because they have no income while Tet is approaching.

Many workers look for jobs near Tet

Many unemployed workers complete procedures to receive unemployment benefits at the Nghe An Provincial Employment Service Center. Photo: CSCC

Mr. Tran Tuan Anh is a garment worker at Minh Anh Garment Company who has just been laid off due to lack of orders. Receiving his October salary, Tuan Anh sadly said: “I have worked at the company for more than 10 months, and during that time I have always had my working hours extended because of the backlog of orders. Each month we only receive from 3 million to 5 million VND, but we are still holding on hoping for a better situation. Because honestly, the garment industry is stuck everywhere now, everywhere there are complaints of excess workers. Especially, I can only sew one stage in the production line and with skills only trained in the factory, it is very difficult to find a new job”. Tuan Anh also said that because his wife is sick and his children are still young, since the beginning of this year he only wanted to work close to home to take care of his family.

Tuan Anh is one of more than 500 workers at Minh Anh Garment Company who lost their jobs near Tet. According to the company's leaders, most of the laid-off workers were unskilled workers with low productivity and short working time at the company. "In the future, if European orders become more active again, we will recruit 150 more workers, but priority will be given to workers who are skilled, have high productivity and experience," said the company's leaders.

Find out about job opportunities at job fairs in the province. Photo: Dinh Tuyen's documents

In addition to Minh Anh Garment Company, MikiDo Garment Company in Do Luong District also had 400 workers stop working. The company's leader said: Most garment enterprises have to let workers go, reduce working hours because orders are shrinking, fuel and other costs are increasing. However, we still retain skilled workers with relatively stable salaries of 5 - 7 million VND/month.

In addition to the two garment factories in Do Luong district, many garment enterprises in the province have also had to stop working and suspend labor contracts. Typically, Thuan Huong Garment Company located in Dien Chau district has more than 150 workers having to stop working due to lack of orders. However, according to Ms. Nguyen Thi Hong Nhung - Head of the Department of Labor, Invalids and Social Affairs of Dien Chau district: The workers who have stopped working are mainly from Hoang Mai town or Quynh Luu, they work seasonally and now they have quit their jobs and have managed to find new jobs. Also according to Ms. Nhung, the garment company in Dien Chau district has recruited more workers to anticipate new orders in 2023.

In particular, there are 2 units that have temporarily suspended operations: ABC International Group Joint Stock Company, Nghe An branch and Matrix Vinh Company Limited. Specifically: ABC International Group Joint Stock Company, Nghe An branch will temporarily suspend operations from October 2022 to February 28, 2023, due to lack of orders. Matrix Vinh Company Limited has temporarily suspended operations from December 2022. In the coming time, the company plans to temporarily suspend production and terminate contracts with employees. According to reports from the units, employees at enterprises with reduced labor have moved to work at other enterprises in the area.

Chart of job losses in the fourth quarter at businesses in the province. Graphics: Hong Toai

Forecast remains difficult

Currently, there are 14,050 enterprises operating in the province with more than 230,000 employees. The average income of employees in enterprises is 5-5.7 million VND/person/month.

Graphics: Hong Toai

It is forecasted that in 2023, it will be difficult for businesses, especially real estate businesses, construction businesses... due to high interest rates and exchange rates; resulting in a number of workers from the southern provinces who have lost their jobs returning to their localities. The Department of Labor, War Invalids and Social Affairs has issued Official Dispatch No. 5213/SLDTBXH-LDVL dated November 18, 2022, in which, Nghe An Employment Service Center is assigned to grasp the situation; urgently send staff to businesses facing difficulties and having to cut or lay off many workers to provide advice, introduce jobs, and vocational training for workers whose labor contracts have been terminated; guide workers to carry out procedures and documents to request unemployment benefits; guide employers to retrain workers in accordance with the provisions of law; At the same time, regularly update and monitor the labor situation, employment, wages and bonuses at enterprises in the province.

Mr. Vi Ngoc Quynh - Deputy Director of the Department of Labor, Invalids and Social Affairs said: "The coming time is expected to face many difficulties due to the general economic recession worldwide, and most businesses in Nghe An depend on orders from the European bloc."

Consulting on job opportunities for workers in the province. Photo courtesy of CTV

Therefore, to overcome the immediate difficulties for workers, grassroots trade unions must participate, dialogue, and negotiate with employers to develop labor plans, maintain as many jobs as possible for workers, and minimize the termination of labor contracts and suspension of labor contracts. For businesses that are forced to terminate labor contracts, grassroots trade unions need to participate in giving opinions on the enterprise's labor use plan; ensure payment of unemployment or termination benefits in accordance with the provisions of law and the enterprise, and the signed collective labor agreement.

“In addition, local authorities and Party committees should take measures to support businesses in order to stabilize production and business, comply with policies for employees, reduce working hours, and terminate labor contracts,” said Mr. Vi Ngoc Quynh.

Mr. Quynh also said that the department will direct the provincial Employment Service Center to have a mechanism to review the number of unemployed workers to provide advice on new job orientation for these workers. In addition, during job fairs, there should be guidance for workers to promptly update their knowledge and skills to prepare for new orders in new industrial parks and enterprises.