Home / Knowledge / News / Apparel/Garments / Workers of foreign invested firms get wrong end of stick
Workers of foreign invested firms get wrong end of stick
18
Apr '11
Factors like less salary and stressful work environment are driving several workers working in the foreign-invested enterprises (FIEs) in Vietnam to either shift jobs or to strike.

Tran Dinh Thien, Head of the Vietnam Economic Institute recently while addressing a meeting held in Hanoi to discuss the country's 2010-2020 development strategy, stated that, the blue-collar workers in these FIEs were least paid, as compared to workers in other companies of the state or those in private sector of the country.

The blue-collar workers in these FIEs' on an average draw a monthly salary of VND 1.2 million or $60. This is the case particularly with the workers employed in labour-intensive industries like leather and footwear, garment and textile and wood processing, he said.

He further added that, even to earn this meager salary the workers often need to work under heavy pressure and give in extra hours.

Further, he even gave a reference of the data released by the Vietnam General Confederation of Labours Worker and Trade Union Institute indicating that, just 52 percent of the workers in FIEs worked for eight hours a day, while some 6.5 percent worked for more than 10 hours per day.

The government has clarified the salary grade issues, but still many FIEs still have around 30 to 40 different pay grades. Also, at times the gap between two consecutive pay grades is just VND10,000 that is $0.5.

Mai Duc Chinh, Vice Head of Vietnam General Confederation of Labour said that, today when the market prices are continuously going high, such a small gap is quite insignificant for workers.

As per the country's labour legislations, the workers are eligible for a minimum salary rise after every two years. However, as revealed by the statistics, more than 20 percent of the FIEs' workers don't get such a rise, while other benefits like bonus, social insurance package and extra pay too go undecided.

According to Thien, FIEs' failure in signing labour contracts with workers, paying their insurance premiums and other allowances are greatly responsible for workers disagreements and strikes.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search