S-Fone's biggest shareholders, Saigon Post and Telecommunications Services Corporation (SPT), will pay former S-Fone employees their severance packages in installments.
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| S-Fone's former workers protested in Danang |
S-Telecom Mobile Phone Center, whose network brand name is S-Fone, was established by SPT along with three foreign partners. In 2010 SPT and its South Korean partner, SK Telecom announced a change in their partnership from a business cooperation contract to a joint venture.
During the process of the changeover, 500 employees were let go due to a capital shortfall. The employees still have not received their salaries or insurance.
At a meeting held between the related parties on July 18, SPT said the total money they owe the former workers is VND43 billion (USD2.1 million), of which insurance accounted for over VND19 billion (USD910,000). The company vowed to try to pay all the owned money within 6-9 months.
Each month SPT will pay around VND5 billion to workers who retired on March 1. Beginning in August it will pay 1.5 month's salary to workers who were dismissed on June 11.
Hoang Si Hoa, General Director of SPT, said that the total amount, VND43 billion, is a large burden on the company during their restructuring.
