Over 600 staff at a Japanese-run firm in Ho Chi Minh City have gone on strike due to the company's low Tet Lunar New Year bonus and a new meagre salary proposal.
The strike began at a factory of Toyo Precision Company at Tan Thuan Export Processing Zone in District 7 on Thursday morning after the workers were informed about the bonus for the Tet Lunar New Year and a new salary payment scheme that would take effect this year.
According to the workers, those who have been employed for less than a year would be given a Tet bonus of just VND 100,000 (USD 4.20). Those who have worked for over a year will get a bonus equivalent to their basic salary plus an allowance of 10 percent of that salary. The company has also announced a salary rise of just 2.25 percent for 2023.
Many workers, especially those who have worked less than a year at the company, complained that the Tet bonus was too low. With the average monthly basic salary of just between VND5-6 million (USD213-256) in 2022, the rise of just 2.25 percent for 2023 was also not fair.
The workers have gathered at the factory since January 12 to protest against the company's payment.
An unnamed worker who comes from the neighbouring province of An Giang said that the Tet bonus of just VND100,000 was not even enough for him to buy a bus ticket to return home for the Tet holiday.
"I started working here last September and my current salary was less than VND5 million (USD213) a month which was enough for me to buy essential food and necessities," he said. "I had expected that we would have a proper Tet bonus but now I'm so disappointed. I also don't agree with the company's salary rise plan for this year."
Another worker who has worked for the company for over 11 years shared that his current basic salary was VND5.66 million. Last year the government announced a basic salary increase of 7 percent but his company in reality only improved his salary by 1 percent. And many surrounding firms have announced their salary rise plan of 6 percent this year but his company will only increase by 2.25 percent.
"This rise isn't fair," he said. "We're seeing a 50 percent increases in the prices of many essential foods, and a 10percent rise in rent, but our salary will only increase by over 2 percent."
The workers demanded that the Tet bonus should be increased by 40 percent and salary for 2023 should rise by 5 percent.
Speaking to local media on January 13, the chairman of the company's trade union, Pham Manh Quan, said that they were discussing with the workers how to reach a proper solution. Quan said that the company was facing financial difficulties due to rising inflation and the falling value of the Japanese Yen.
The Japanese-wholly-invested Toyo Precision Company has been operating in HCM City since 1995, specialising in producing spare parts for planes.
