Vietnam Shipbuilding Industry Group (Vinashin) plans to cut around 14,000 labourers of their 26,000 workforce due to operational difficulties.
Vinashin plan to lay off 14,000 labourers
According to Vinashin's acting General Director, Vu Anh Tuan, by the end of July, Vinashin had 26,242 labourers but up to 30% of them, or roughly 8,000, are jobless and this figure tends to be on the rise monthly.
Meanwhile, the shipbuilding industry is still facing difficulties with the falling shipbuilding prices and lack of capital for business and production activities of Vinashin’s affiliates.
The labourforce reduction will be carried out in two phases with the first to cut off 8,000 people and the rest will be laid off during the group’s restructure process.
He even said that Vinashin could not afford to pay social, health and unemployment insurance for its laboruers, therefore, it now can not pay salary its still owes them and deal with social insurance-related issues for them before they stop working.
At the meeting, Minister of Transport Dinh La Thang instructed Vinashin leaders to try to ensure jobs for its labourers and settle procedures relating to their rights before terminating contracts with them.
The minister also added that he will work with banks, ministries and agencies to speed up the merge of Vinashin’s affiliates to restructure the group.
In the first eight months of this year, Vinashin achieve revenues of VND2.7 trillion (USD128.5 million), meeting just 39.67% of the year’s target. By this time, it had handed over only 20 out of 69 ships for ship owners.
Vinshin plans to finish restructuring 50 affiliates by late September.
