Taiwanese company axes 10,000 workers in Vietnam before Tet

Taiwanese textile company fires 10,000 workers in Vietnam before Lunar New Year

Taiwan News
Date: 2019/02/01
By: Keoni Everington, Taiwan News, Staff Writer

Workers inside My Phong factory. (Image from www.travinh.gov.vn)

TAIPEI (Taiwan News) — A Taiwanese textile company has laid off over 10,000 workers at its plant in southern Vietnam, just days before the Lunar New Year, reported VnExpress.

A Taiwanese-owned firm identified by VnExpress as My Phong Textile company announced that it would lay off 10,142 workers on Tuesday (Jan. 29). The mass layoff of employees comes at a sensitive time as it is just days away from Tet, Vietnam’s version of the Lunar New Year, the biggest holiday in the country.

VnExpress cited a company spokesperson as saying that the massive cut in staff was due to the fact that its main U.S. partner, which accounts for 70 percent of its contracts, had declared bankruptcy. The, company, which is located in Tra Vinh Province, specializes in making leather shoes for the export market.

Government officials have been dispatched to speak with management to ensure that the workers’ rights are protected. The company said that it will pay the January and February salaries for the workers in full, and will also include holiday bonuses and unemployment benefits based on labor laws and to “ensure they are able to go home and celebrate Tet.”

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