The state-run Vietnam Motors Industry Corporation (Vinamotor) is facing labor redundancy as its production scales down from the shrinking market share.
The finish of old contracts and the presence of many new small carmakers are the core reasons for the redundancy, a corporate official said without giving any exact figure of unnecessary workers.
“Vinamotor now is mainly relying on retailing sales, not contract sales,” he noted, “Our car sales, mainly buses, dropped 20 per cent to 1,400 units in the first six months of this year”
Several member companies of Vinamotor have sacked temporary workers to maintain operation.
About 400 workers of the Automobile Co. 1-5 are now forced to have rotational leaves without salaries. The company is now employing 1,490 workers.
“This is a provisional measure and the labor redundancy is a temporary phenomenon,” Duong Van Manh, Deputy Director of Automobile Co. 1-5 said. “Hence, we are trying to keep skillful staff,” he added.
“My salary is halved to VND850,000 ($50) because I attend only 15 working shifts a month,” Nguyen Manh Hai, a worker of the company said, adding he is on leave 15 days a month.
Nguyen Van Khoa, General Director of Vinamotor, reassured its staff that the corporation will recruit temporarily sacked ones when its new factory in Hanoi’s Dong Anh District becomes operational and needs 500 workers by the end of this year.
In addition, Vinamotor has expanded its business in various copes like oil refinery and wastewater treatment to create new jobs for its workers.
In a related development, Vinamotor has received a license from the Ministry of Transport for employing foreign CEOs to improve management and production efficiency.
Vinamotor production capacity will reach 100,000 units a year after some factories complete construction.
Transport
Vietnamese
