A No-Layoffs Pandemic Plan

Pouchen Company Trade Union officers are advising workers on the policy regime at the Trade Union Division.

At Pou Chen Vietnam Enterprise Ltd (Hoa An Ward, Bien Hoa City) where 16,000 employees are working, the Chairman of GTU Nguyen Tan Phap said that the company mainly carries out high-class orders exported to Europe and America. Meanwhile, in Europe and America, the epidemic situation is very complicated, so the company has faced many difficulties in finding orders. From the third quarter to 2020, orders have decreased dramatically, workers have to take a large number of rotating leave. In particular, the number of orders is only 45-48% from the end of June until now.

When the employees are temporarily suspended, the company still pays the salary in accordance with the State regulations, with the salary level equal to the regional minimum wage. However, due to the fact that employees have to take time off from work for many days a week, even with “zero-order” chains, many employees have to take a full month off, causing their income to decline sharply compared to before. It is forecasted that if there are no new orders in October, Pou Chen Vietnam will cut 30-40% of employees of its total, doing contraction to reduce costs, helping the company to survive. 

Worried about the situation and aware of its responsibility, all GTU officials gathered, discussed, discussed to find out a plan to both share difficulties with the company and keep jobs for employees. Finally, they came to an agreement that would petition the company to close the pay scale for level 16.

Specifically, according to Mr. Phap, the company currently has the highest pay scale of 26. When workers agree to level 16, no “raise” in scale, the Company will be able to find orders with equivalent ease, creating more jobs to compensate for the number of unemployed workers due to the reduction of high-end orders to 45-48% over the past time.

According to Mr. Phap, the GTU proposed to close the pay scale for workers at level 16 with no raise, while for current workers who are receiving wages above level 16, they will retain their salaries, not being cut. Mr. Phap also emphasized that this is a petition to “close”, not reduce the workers' wages. Every year when the Government raises the salary, the workers are still getting such pay scale, and the Company still pays the monthly and annual long service bonus for workers. All previous policies and welfare regimes for employees remained the same.

Also according to Mr. Phap, along with the above solution, the GTU and employees suggested the Company must ensure that there will be no labor cuts in the coming time. Currently, the GTU is collecting opinions from employees, and the number of workers agreeing with this solution is almost 100%. All employees expect that the company will not have a plan on layoff, meanwhile, they want the company to soon overcome difficulties, stabilize production and create more benefits for employees.

Mr. Thai Minh Chi, Deputy General Director of Pou Chen Vietnam Enterprise Ltd said: “In the coming time, it is forecasted that the company will still face many difficulties as the epidemic progress is still very complicated. The company hopes to receive employees' sharing and companionship to overcome this period. As the company stabilizes and develops, the company will continue to build, improve policies, benefits for employees, and better care for employees.” – The Deputy General Director of Pou Chen Vietnam Enterprise Ltd affirmed.

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