A Taiwanese shoemaker in HCMC’s Binh Tan District has laid off 1,185 workers and blamed it on a drying up of orders.
In an announcement, Monday Ty Hung Co. Ltd, said its customers face financial issues and have not placed new orders.
Despite trying everything it could, it is unable to maintain production as planned and has no choice but to terminate labor contracts with 1,185 people on Dec. 1, the statement said.
It will pay a severance allowance to employees who have worked since 2008 and two months’ salary to all employees whose social insurance premiums are now cut due to losing their job.
It will also pay one month’s salary as a bonus to those who worked for the entire year until being laid off and make pro rata payments to others.
The Taiwanese firm has 1,800 employees and makes shoes for export to Europe.
According to the Ho Chi Minh City Labor Confederation, textile, footwear, and electronic factories have lost orders due to difficulties in finding raw materials and falling demand.
To cope, many factories in the city have cut workers’ hours or furloughed or laid them off, it added.