Businesses hunting for labourers

Decision 30 states that the businesses that have difficulties in 2009 due to the economic downturn and still cannot pay salaries, social insurance and unemployment allowances to workers will be able to get loans from the State to pay workers. The businesses that can access the loans are those which have had to lay off 100 workers or more (or 30 percent of workers).

As for the workers who lose jobs at enterprises whose bosses have fled in 2009, local authorities can advance local budgets to pay workers.

A question of pride

An official from the HCM City Department of Labour, War Invalids and Social Affairs said that many businesses do not want to borrow money from the state budget to pay workers. They would rather owe salaries to workers that let any one know that they have been facing difficulties. As a result, workers of the businesses have been suffering.

That explains why hundreds of businesses in Dong Nai, Binh Duong and HCM City have reportedly scaled down production and laid off workers, but only a few businesses have sought support from the state.

40,000 workers in HCM City have reportedly lost jobs this year. Meanwhile, only one enterprise has sought out a zero-interest loan to pay workers.

A question of flight

Four hundred workers of Vietnam-South Korea Garment Company in Thu Dau Mot town in Binh Duong province have fallen into difficulties as the company which they work for still owes 1 billion dong in workers’ social insurance to the state. The company has not paid salaries and unemployment allowances to the workers, while the director of the company has fled.

Nguyen Van Khuong, Deputy Chairman of the Binh Duong Labour Union, has affirmed that in this case, the company is eligible to enjoy the preferences stipulated in the Government’s Decision No 30.

“The provincial authorities will establish a taskforce which will work at the company and confirm the flight of the company’s boss, so that the people’s committee can advance money to pay the workers,” Khuong said.

Also in Binh Duong province, the Vietnam-Singapore Industrial Zone’s Management Board has advanced 2 billion VND to pay to 220 workers in Taiwanese invested Kovi Company, the director of which has run away.