News » Vietnam
Thousands of workers abandoned by South Korean company
  • |, Tien Phong | February 27, 2018 11:12 AM
Thousands of workers at KL Texwell Vina returned to work on February 26 after the Tet holiday to find that the company remained closed and their South Korean managers were still absent.

Workers come to KL Texwell Vina Company's headquarters at Bau Xeo Industrial Zone in Trang Bom District on February 26

Arriving at the company's headquarters at Bau Xeo Industrial Zone in Dong Nai Province's Trang Bom District on Monday morning to work as scheduled, Nguyen Thi Thu Thuy was informed by the company's guards that the company had not yet opened.

A worker by the company's closed gate on February 26

"We knew about the company's problems when they failed to pay our salaries for January before the Tet holiday," Thuy said. "Salaries for December 2017 were paid to us in three installments. I've worked here for six years and now at the age of 49, it is difficult for me to find a new job."

Thuy was among nearly two thousands workers who came to wait at the company's gate yesterday for new information.

Meanwhile, some other companies in the area came bringing recruitment notices. However, they all required a social insurance record in the CV which workers at Texwell Vina do not have because their company still owes money to local Social Insurance Department.

According to the provincial Department of Labour, Invalids and Social Affairs, KL Texwell Vina Co.Ltd still owes nearly 13.7 billion (USD616,000) in salaries for January 2018 to 1,928 workers. They also owe over VND 17.5 billion (USD750,000) in insurance payments to the provincial Social Insurance Department.

The Dong Nai Provincial Labour Federation confirmed that Texwell Vina's general director, Chang Jeen, and 11 other South Korean managers at the company had left Vietnam on February 8.

Following a strike demanding the payment of salaries on February 8 and 9, authorities in Dong Nai Province on February 11 used their own funds to pay salaries and Lunar New Year (Tet) bonuses for nearly two thousand workers of the company.

Each worker received 50 per cent of their January salary that KL Texwell Vina owes. They also received another VND600,000 (USD26.40) in donations from several local agencies.

Lawyers have suggested Dong Nai authorities quickly file a lawsuit to start bankruptcy procedures against the company so that its machinery and other assets could be valued and sold to pay the salaries and bonuses.

South Korean-invested KL Texwell Vina registered for investment licence in garment and textiles in December 2015 and employs more than 1,900 workers.

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