Sunrising Kim Vina in Binh Tan District announced they will close in four months, some workers said, noting that they have not received any severance pay and are not prepared to find new jobs.

HCM City Labour Union has ordered Binh Tan Labour Union to find out why the company abruptly stopped its business.

When a company temporarily closes shop for a short time, it has to inform local authorities beforehand and pay workers for the interim, according to the city labour union.

In the event the firm shuts down permanently, it is required to pay workers all due wages, allowances and social insurance contributions to retirement funds, the union said.

Up till the end of last month, 87 South Korean-invested businesses in HCM City owe the city Social Insurance Agency contributions totalling some 42 billion dong (US$2.5 million), the city's Department of Labour, War Invalids and Social Affairs told the local South Korean Consulate and South Korean Business Association in a meeting Thursday.

According to the department, many of the businesses have fled without paying the requisite contributions and wages.

Experts said this misconduct adversely affects more than 1.4 million labourers around the city who have social insurance fees deducted from their salaries.

Out of 525 South Korean-backed businesses in HCM City, only 159 have labour regulations, only 115 have established labour unions and only 180 have payroll and salary scale structures, officials said at the meeting.

Representatives from South Korean agencies at the meeting committed to working with HCM City authorities to solve the problem of defaulting companies.

Thanh Nien News - November 3, 2008