600 workers of Japan-invested firm strike over low new year bonus

Nearly 600 workers of Toyo Precision Co., Ltd., a Japanese-invested producer of sewing machine components in Ho Chi Minh City, went on strike from Thursday morning to Friday, due to low Lunar New Year (Tet) holiday bonuses.

The firm set Tet bonuses for staff with working duration of less than a year at only VND100,000 ($4.27), some staff reported. For laborers working over a year, the bonuses are equivalent to 1.1-month wages.

The wholly Japanese-owned firm is located at Tan Thuan Industrial Park in District 7.

A worker with past experience in other firms told local media that Tet bonuses are often proportional to the number of working months in a year, not applied with no difference at only $4.27 for those working for less than one year like this case.

The wages are pretty low, and many workers hope for decent bonuses. Disappointment has led to the labor strikes, he added, declining to be named.

Besides, the firm also annoucend a meagre increase of 2.25% in 2023 wages year-on-year.

Some senior workers complained the 2.25% wage hike for 2023 is too low, versus the increase of 6% at many other firms in Tan Thuan Export Processing Zone.

An unnamed female worker said her wage is only VND5.2 million ($222) per month after 10 years of working.

Pham Manh Quan, head of the firm’s trade union, was quoted by local media as saying the unit is working with relevant authorities to negotiate with the company to find the best solutions.

The firm admitted the low Tet bonuses were owing to the depreciation of the Japanese yen and high inflation affecting the company’s finances.

Initially, the firm agreed to change Tet bonuses for staff working for less than a year based on the number of working months. It also agreed not to dismiss participants in the labor strike nor to reduce their salaries.

However, many workers have yet to accept such terms and continued the strike.

Vietnam recorded 157 labor strikes in 2022, up 46.7% year-on-year, according to the Vietnam General Confederation of Labor, also the head of trade unions in the country. A majority of cases were in foreign-invested enterprises (FIEs), particularly in the southern region, the confederation added.