Solutions to resolve the situation of reducing working hours and terminating labor contracts

More than 2,000 workers have their working hours reduced.

Through surveys in localities, currently, businesses in Nghe An are basically operating stably, however, the situation of reducing working hours and terminating labor contracts for some groups of workers has been increasing. By November 27, 2022, the number of affected businesses, cutting orders: 25 units. Mainly in the garment and footwear industry, units exporting to the US and European markets. The number of workers with reduced working hours is 19,942 people, 1,797 workers have terminated their contracts, 452 people have suspended their labor contracts.

Up to now, there have been 02 businesses that have temporarily suspended operations: ABC International Group Joint Stock Company - Nghe An Branch and Matrix Vinh Limited Liability Company.

The unemployment situation mainly occurs in garment companies. Photo: CSCC

Mr. Nguyen Hoang Vinh - Vice Chairman of Thanh Chuong District Labor Federation said: “ABC International Group Joint Stock Company - Nghe An Branch temporarily suspends operations from October 1, 2022 to February 28, 2023, due to lack of orders. Accordingly, the labor contracts between 540 officers, employees and workers with the company will be suspended during the above period.

Similarly, Matrix Vinh Limited Liability Company will temporarily stop production and plans to terminate labor contracts with 435 people, retaining only 31 workers.

In Nghia Dan district, according to Ms. Nguyen Thi Quynh Trang - Vice President of the District Labor Federation, some garment enterprises in the area have begun to cut relatively large staff due to lack of orders, such as Phu Linh Garment Company, Duc Phat Production and Trade Limited Liability Company, the number of workers laid off due to lack of work is 150 people, accounting for about 20%.

The fluctuations in the world economy have severely affected the business and production situation of domestic enterprises. Photo: CSCC

In the areas of Do Luong, Nghi Loc, Dien Chau, Vinh city, Southeast Economic Zone... many businesses are also forced to reduce production, or produce at a standstill due to lack of orders, lack of raw materials, and high input costs. It is forecasted that from now until the end of 2022, the first quarter of 2023, businesses will still face many difficulties due to many fluctuations in the world situation such as the war between Russia and Ukraine, rising oil prices, strong appreciation of the US dollar, global inflation, the US and European countries' ban on raw cotton yarn, clothing and textiles made from cotton grown in Xinjiang, including products made in third countries, so businesses will still face many difficulties.

Some solutions need to be done immediately

Grasping the situation that some enterprises are facing the risk of temporarily suspending operations, in order to protect the rights of workers according to the provisions of the law, the Provincial Federation of Labor focused on directing trade unions at all levels to urgently grasp the situation and at the same time synchronously deploy specific and practical solutions to contribute to stabilizing the situation.

The Provincial Labor Federation promptly directed the Thanh Chuong District Labor Federation to provide legal advice to 540 workers of ABC Limited Company on the labor contract suspension regime and unemployment benefits when the enterprise was forced to temporarily suspend operations at half capacity due to lack of orders. As a result, the company will not suspend labor contracts but will still arrange other jobs for those who are pregnant under 3 months at the factory, continuously pay insurance to enjoy maternity benefits when giving birth; 400/540 workers have completed procedures to terminate their labor contracts to receive unemployment insurance. More than 150 workers have completed procedures to suspend their contracts. Before suspending their labor contracts, the company had fully paid all benefits to the workers.

Nghe An Provincial Labor Federation attended an online conference on the situation of reducing working hours and terminating labor contracts for employees organized by the Vietnam General Confederation of Labor. Photo: CSCC

At Matrix Vinh Limited Liability Company, the Southeast Economic Zone Trade Union is focusing on guiding the procedures for terminating labor contracts according to legal regulations. The Provincial Labor Federation will continue to monitor the situation and promptly support union members, employees, and businesses if conflicts arise in labor relations.

On the business side, to maintain jobs for all workers, companies are implementing a number of measures such as: Not cutting or terminating labor contracts with workers but cutting overtime to complete old orders and some new small orders to maintain temporary labor; actively and proactively searching for new markets, new customers, new orders; disseminating the actual situation and encouraging workers...

Despite the difficult economic situation, there are still many businesses that need to recruit new workers, especially electronic businesses in economic zones. Many large investment projects in Nghe An are expected to attract thousands of workers inside and outside the province. To support businesses and workers, the Provincial Labor Federation will continue to post recruitment information of businesses on the fanpage of Nghe An Trade Union, the Electronic Information page of the Federation and provide legal advice to workers on the labor contract suspension regime and unemployment benefits when businesses are forced to temporarily suspend operations.

Trade unions at all levels are and will be implementing many activities to support workers and laborers in the coming time. Photo: CSCC

At the same time, Nghe An Trade Union will urgently implement a number of other specific solutions such as: Directing higher-level trade unions and grassroots trade unions to grasp the production and business situation, orders and labor use situation of enterprises to have timely support measures, participate in dialogue and negotiation with employers to develop plans to maintain as many jobs as possible for employees, and minimize the termination of labor contracts and suspension of labor contracts.

For enterprises that are forced to terminate labor contracts, the grassroots trade union, with the support of the higher-level trade union, will participate in giving opinions on the enterprise's labor use plan, ensuring payment of unemployment or severance benefits in accordance with the provisions of law and the enterprise, and the signed collective labor agreement. In addition, report to the Party Committee and local authorities to take measures to support enterprises to stabilize production and business, comply with the regimes for working employees, reduce working hours, and terminate labor contracts; Connect with grassroots trade unions of enterprises in the area that need to recruit workers to introduce jobs to workers; Have support regimes for workers in difficult circumstances.