In Vietnam, over 300 workers cry for help as American company owner flees

More than 300 workers found themselves with unpaid salaries and without work after the owner of an American company in Binh Phuoc Province, southern Vietnam disappeared.

On Wednesday, the Binh Phuoc industrial parks labor union announced that it is providing legal support to workers who have not been paid for 40 days and are unable to reach their employer.

Signature Home Furnishings Company, based in Chon Thanh 1 Industrial Park in Chon Thanh Town, Binh Phuoc Province, announced on July 11 that it would suspend operations until further notice.

June salaries would be paid no later than July 19, according to the announcement.

In addition to failing to support its workers, the company asked employees to voluntarily submit resignation letters and pledge not to file lawsuits if they wanted to receive unemployment benefits.

Two months later, employees still have not been paid and have not received any insurance coverage, despite having contributed to social, healthcare, and unemployment insurance each month during their employment.

The company owner has been unreachable.

Thanh Loi, from Soc Trang Province in the Mekong Delta, shared that he and his wife started working at the company in 2020 and had no issues until July 2024 when they did not receive their June salaries.

He also said that there was mass confusion when the company announced that workers would be laid off.

The situation put significant financial strain on Loi and his wife, leaving them without money to cover schooling fees for their children.

Similarly, Cap Thi Thuan, 45, has found herself without money and unable to find a new job.

“I hope that competent agencies can help us get our labor benefits and rights,” she said.

Aside from their unpaid wages and insurance, these workers have been unable to receive unemployment benefits as the company was yet to issue labor contract terminations.

Tran Le Thi Ngoc Hanh, vice-president of the Binh Phuoc industrial parks labor union, said that after being notified of the case, the provincial labor federation directed the trade union to support those affected by the Signature Home Furnishings lay-offs.

The biggest difficulty in addressing the case was that the owner of the company seems to no longer be present in the province, she said.

The company did not issue any decision on labor contract terminations, making it hard to provide benefits of wages, social, and unemployment insurance for these workers.

The trade union instructed them to complete petitions and send them to the provincial court and other designated agencies in order to receive support.

U.S.-invested Signature Home Furnishings, whose general director was identified as Abby Rafieha, specialized in manufacturing beds, sofas, wardrobes, and chairs.

The company, which started its operation in Vietnam in early 2020, owes over 300 workers some VND3.2 billion (US$130,030) in unpaid wages and nearly VND1 billion ($40,420) in insurance coverage for three months.

It also owes some VND2.5 billion ($101,550) in union fees.

By Tieu Bac & A Loc – Tuoi Tre News – September 26, 2024