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Workers at Pou Yuen a major Vietnamese footwear factory for Nike and Adidas and other brands ended a week-long strike on April 2 after the government agreed to their demands on retirement payouts. The stoppage by thousands of workers at the Taiwanese-owned Pou Yuen factory in southern Ho Chi Minh City was a rare challenge to communist authorities over policy issues.
The workers were protesting a social insurance law, which comes into effect next year and says that workers will get a social insurance monthly allowance when they retire instead of getting a one-time payment if they resign. The workers said that if they quit, they would have to wait until their retirement age, 60 for men and 55 for women, to get the allowance, and prefer the lump sum to pay for their daily needs while seeking new jobs.
In a meeting chaired by Prime Minister Nguyen Tan Dung on April 1, representatives from the Labor Ministry, the trade union and the Ho Chi Minh City government proposed changes to the law to make it "suitable to the situation" and meet the workers' demand, the government said in a statement.
The government will ask the National Assembly to amend the law that would allow labourers to get their retirement payouts at one time or when they retire, if they choose so, it said.