Taiwanese shoemaker announces $11.5M severance pay for 2,300 workers as orders dry up

By Le Tuyet   February 24, 2023 | 08:30 pm PT
Taiwanese shoemaker announces $11.5M severance pay for 2,300 workers as orders dry up
Pou Yuen workers go home after work in HCMC's Binh Tan District, October 2021. Photo by VnExpress/Thanh Nguyen
Pou Yuen, which makes shoes for Nike and Adidas, announced Saturday a VND275-billion (US$11.56 million) severance package for 2,358 workers due to be laid off next month.

The workers will receive 0.8 month’s salary for every working year.

Of those getting the slip, around 379 have worked for more than 20 years and so will receive more than VND300 million each, with the maximum being VND379 million ($16,000).

The newest workers will get VND12 million ($504).

The payments will be made in early April.

Pou Yuen Vietnam, a subsidiary of Taiwanese shoe company Pou Chen and HCMC’s biggest employer, has more than 50,500 workers at its factories in Binh Tan District.

The company said a sharp fall in orders has left around 3,500 workers idle since late last year, and it has arranged for pregnant workers and those who have young children and disabilities to remain and negotiated to let the rest go.

Nguyen Van Lam, deputy director of the HCMC Department of Labor, Invalids and Social Affairs, said Pou Yuen’s severance pay is higher than the requirement, which is half a month’s salary for every year in employment.

HCMC’s Employment Service Center has connected with 15 businesses in Binh Tan and nearby areas and found more than 3,200 jobs for the workers set to be laid off.

 
 
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