Textile workers could abandon small firms over wages

While some large textile and garment firms received enough orders for the first half of this year, smaller ones are still trying to get enough contracts to avoid layoffs, according to the Vietnam Textile and Garment Association Many workers in the garment and textile industry are expected to move from struggling small firms to larger ones as the economic downturn magnifies disparities in wages between the two categories, a union official said.

Vu Ngoc Quyen of the Trade Union of Garment and Textile Workers said while job-hopping is common in the industry, it was not a problem in the past thanks to small differences in salaries. Until six months ago, workers at small firms could do a lot of overtime work, meaning their total income was close to the wages paid by larger companies. But now, with the industry hit hard by the global economic turmoil, small businesses are struggling to maintain sales and their workers can no longer work overtime. With the gap in wages and bonuses gradually increasing, Quyen said it is likely that small companies would face a shortage of workers after Tet (Lunar New Year festival). Successful companies like Nha Be, Phong Phu and Viet Tien pay workers as much as VND2.6 million (US$148) a month on average while smaller firms pay around VND1.8 million ($103). Pham Xuan Hong, deputy chairman of the Vietnam Textile and Garment Association, said while some large firms received enough orders for the first half of this year, smaller ones are still trying to get enough contracts to avoid layoffs. The large companies will pay VND5-6 million as Tet bonuses while the smaller ones are likely to pay just a month’s wage or even less. A human resources manager at a garment and textile company employing 20,000 people, who wished to be unnamed, said his company recruited more than 500 workers in the last quarter of 2008, compared to around 90 a year earlier. But he said many workers applied to his company after their small enterprises closed down. His firm needs to employ 700 more, he said, admitting for the past several years it had been more than 1,500 workers short. But with supply expected to exceed demand, he said his company would focus on recruiting skilled workers after Tet. Tuan Nguyen Nghi, managing director of Nha Be Corp., said since the company has already received enough orders to remain busy for the first six months, recruitment would go on. Other companies’ layoffs give his the opportunity to hire experienced workers. Truong Lam Danh, deputy chairman of the HCMC Labor Union, said while many workers had lost their jobs recently because of the economic downturn, large companies like Viet Tien, Nha Be, Viet Hung and Viet Thinh regularly announce they are hiring. But the Vietnam Textile and Garment Association’s Hong warned: “Workers who want to keep their jobs at large companies or wish to work for them will have to concentrate on their skills since the sector is expected to face more problems.” Source: TBKTSG Online