HCMC – A fall in new orders has forced PouYuen Vietnam, a major footwear manufacturer of Taiwan, to require 20,000 of its employees to take paid leave in rotation for three months, according to the HCMC Labor Confederation.
As explained by the most labor-intensive firm in HCMC, the firm’s major export markets have sharply cut orders and the company has competed fiercely to secure orders for sports shoes as its customers have suggested 50% price cuts, the local media reported.
Despite multiple difficulties in business operations, the company has asked only 20,000 of its 50,000 workers to take rotating paid leave over a period of three months, from December 1 to February 28, 2023. The company has pledged not to lay off its employees as the Lunar New Year holiday, or Tet, is drawing near.
The workers affected will mostly take time off on weekends. Each of them will have 14 days off in total and will be paid VND180,000 per day during the given period.
Statistics from the HCMC Labor Confederation showed that 27 enterprises in the city had fired over 2,850 employees, citing an economic slowdown and their plans to restructure business operations.