Workers resign their jobs in masses, causing headache to businesses

Low wages and high goods prices have prompted workers to quit their jobs to seek better jobs which can bring the income high enough to cover the increased expenses.

The topic, which caught the special attention at the conference of key leaders of the Vietnam Railway Corporation held recently, was that more and more workers in the industry have resigned from their works.

According to Pham Duc Thuan, an official of the Vietnam Railways Trade Union, the number of workers is less than 42,000, which represents a decrease of 2000 workers in comparison with 2008.

The key leaders pointed out that the wages workers can receive monthly remain too low, while everything is getting more and more expensive. As a result, the incomes of workers do not allow them to cover basic expenses, thus forcing them to seek better jobs to survive.

The problem is, according to labor exports, that the problem does not only exist in the railway industry.

Unlike the crisis period, when manufacturers laid off workers to cut down expenses, workers now decide to resign their jobs.

Since the beginning of 2011, since the prices have been increasing, wages cannot cover daily basic needs, a lot of workers at factories and enterprises have unilaterally terminated the labor contracts to look for other jobs which can bring higher incomes. Many of them have become freelancers.

According to the HCM City Management Board of Industrial Zones and Export Processing Zones (Hepza), in the first five months of 2011 alone, up to 30,000 workers have left their jobs, causing big difficulties to enterprises in the zones. The enterprises cannot fulfill their production plans because of the lack of laborers. They have to hurry to recruit new workers, but have to spend time to train new workers.

Nguyen Tan Dinh, Deputy Head of Hepza, pointed out that the low income of laborers in industrial zones is the main reason behind the unstable workforce of enterprises.

Hua Thi Thanh, a worker of a joint venture which makes electronic accessories and cables at the Thang Long Industrial Zone, said that in the current circumstances, when goods are getting more and more expensive, workers would consider leaving for other jobs, even if the new jobs can bring the incomes just several hundreds of thousands dong higher.

According to Thanh, with the average income of less than 2 million dong a month, a lot of workers, who live in the same boarding house area, have decided to stop working for factories and leave for the home villages.

Thanh added that she is considering applying for the job at Panasonic’s factory, after she read a notice that the company now needs workers and offers the monthly income which is 300,000 dong higher than her current income.

Nguyen Tien Dung, a worker, said that he has resigned his job at Yamaha, adding that since the beginning of 2011, many workers have also quit the job there.

Low income was the main reason behind their decision. In general, a worker who specializes in assembling accessories at the enterprise got 1.650,000-2 million dong a month, an income too low for them to cover their basic expenses.

The short supply of cars recently has been explained by the difficulties in importing car parts. However, Thoi bao Kinh te Vietnam has quoted its sources as saying that some automobile manufacturers do not have enough products to sell partially because they are lacking workers.

“In the world economic crisis which took place in 2008-2009, when a lot of well- known automobile and motorbike manufacturers had to cut down production and lay off workers. However, things are quite different now. Workers at enterprises now willingly want to resign their jobs because of the too low wages, which cannot feed them in the price storm period,” a source said. – TBKTVN

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Posted by VBN on Jun 13 2011. Filed under Economy News, Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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