Thursday , June 13 2024

Women over 40 account for half of Adidas, Reebok supplier’s sacked workers


Half the workers to be laid off by Taiwanese contract footwear manufacturer Pou Yuen Vietnam in June and July will be women aged over 40 years.

The layoff will see the city’s largest employer part ways with 5,744 workers, 80% of them women, 60% of whom have worked for the company for 10 years or more.

On April 1, the largest employer in HCMC had sacked another 2,300 workers.

Since 2020, it has laid off 10,900 workers due to lack of orders as raw material prices rose due to Ukraine conflict.

The company will pay the sacked workers compensation at the rate of 80% of their last drawn salary for every year they worked.

Workers who are pregnant, on maternity leave, having kids under 12 years, from poor households, disabled, and facing other disadvantages will not be laid off.

According to the Ministry of Labour – Invalids and Social Affairs, the impending layoff will have a psychological effect on workers and a bearing on the HCMC employment situation, but the situation is under control.

It has instructed relevant authorities to help the workers access welfare benefits and get new jobs.

It also warned that similar large layoffs could occur at more businesses in the near future due to high inflation.

Pou Yuen Vietnam is a subsidiary of Pou Chen Taiwan that makes footwear under contract for global brands like Adidas and Reebok.

It employs 110,000 workers, 46,000 of them in HCMC.

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