Low wages get blame for big shortage of textile workers

Low wages get blame for big shortage of textile workers

(23-06-2009)
VNS

Nguyen Son, deputy secretary general of the Viet Nam Textile and Apparel Association, discusses the industry’s labour shortage with Dau Tu (Viet Nam Investment Review) newspaper.

The industry is said to be short of about 50,000 workers. Is it true?

The industry actually faces labour shortages. After the first quarter, many labourers working in small- and medium-size textile and garment enterprises were sacked following a drop in orders.

A few big companies and State enterprises are trying to keep workers, reduce production expenditure and gain more orders.

Information from around the country shows many companies have orders until the end of the third quarter, but can’t find workers. Only 40-50 per cent of the thousands of vacancies have been filled.

Is it correct that many businesses have subcontracted orders to other companies?

Yes. But to choose appropriate enterprises for secondary contracts is difficult as it depends on the condition of factories, facilities and workers’ skills. Importers won’t approve unsatisfactory products.

What is the main reasonfor the shortage of workerss?

It is the low incomes. Labourers have a lot of difficulty maintaining a good standard of living on an average income of VND1.5 million (US$80) or even VND2.5 million ($130) from big enterprises. Many change jobs or return home.

Is it correct to say companies won’t find workers unless wages rise?

It is basically true, but to increase wages is not easy for companies due to the market fluctuations such as decreasing exports and rising production costs.

Workers should share the challenges and help enterprises overcome the difficulties by accepting a lower salary. Once the difficulties are over, companies will gain more orders and labourers’ incomes will surely be adjusted.

What has your association done to help enterprises handle the shortage?

We have asked businesses in the central and the southern parts of Viet Nam to meet monthly to discuss the problem. Next week, textile and garment enterprises in the north will meet industry leaders in Ha Noi to find ways to overcome labour shortages.

We have advised textile and garment businesses not to establish factories in industrial zones because they could end up competing with other enterprises in the zone for labourers. — VNS