7,000 employees of Taiwan-invested footwear firm strike work in central Vietnam

Nearly 7,000 workers of footwear maker Viet Glory Co. Ltd., or 90% of its workforce, began a strike Monday afternoon demanding changes to “unfair” benefit policies of the Taiwan-invested firm.

The firm, located in Dien Chau district, Nghe An province, said it has responded to the workers’ demand and asked them to return to work Tuesday. However, as of Tuesday morning, the strike had not ended, with workers claiming the firm had not met all their demands.

The workers are demanding improvements in base salary, conduct of both foreign and Vietnamese high-level staff, maternity policy, recalibration of timekeeping machines, meeting schedules and working conditions, Le Manh Hien, vice chairman of Dien Chau district, told The Investor.

The firm has said it has already implemented or will implement policies in line with workers’ demand, including retraining of high-level staff, early end of shifts for pregnant workers, recalibration or repair of timekeeping machines, adjustments to meetings and beyond-schedule meetings counted as overtime work and more bonuses.

It has also pledged to review requests related to year-end bonuses and toxicity allowance in line with Vietnam’s laws.

However, regarding the demand for higher base salaries, the firm said that the current VND4.13 million ($169.4) was already higher than the minimum requirement under the law at VND3.64 million ($149.3). Given the current situation of operations, the company said it cannot change it and asked for the workers’ understanding.

It also reminded workers that anyone not working for five days in a month without permission will be laid off.

Construction of the Viet Glory factory began in May 2020, with a first phase investment of $22 million. The 8-hectare plant was expected to employ 10,000 people and produce 25 million products a year.

In July 2021, Nghe An province approved the second phase of the project, with an additional investment of $22 million for an additional annual output of 9.6 million products with 6,000 more workers.

The company had faced similar protests around the Lunar New Year (Tet) holiday in 2021 and 2022, and some workers quit their jobs on their own, citing unfair benefits and low wages.

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 said.