Hanoi - Vietnamese authorities have warned South Korean firms to cease violating labour laws if they want to continue their Vietnamese operations, a senior government official said Thursday. "Many South Korean firms have violated Vietnamese law," said Mai Duc Chinh, vice chairman of the Vietnam General Labor Federation. "They failed to set up payroll and salary scale structures for their Vietnamese staff, and the salaries were not commensurate with the work."
Chinh said according to the figures of the Labour Federation, South Korean firms experienced the second highest number of wildcat strikes among foreign companies in Vietnam. There have been 437 such strikes in the past 13 years, compared to 566 among Taiwanese businesses.
Labour officials pointed to a series of violations of labour laws at South Korean firms in recent months.
On September 17, the general director of South Korean-owned textile firm Vina Haeng Woon Industry in Ho Chi Minh City told workers production had been halted due to a lack of orders, and asked them to come back on October 20 to receive their salaries. But when workers returned the company refused to pay them.
South Korean-owned firms Quang Sung Vina textiles and Ajin Shoes have also failed to pay laid-off workers.
The city's Department of Labour, Invalids and Social Affairs reported that through the end of September, 87 South Korean-owned businesses owed workers' Social Insurance contributions totaling some 42 billion dong (2.5 million dollars), in addition to owing the workers' salaries.
According to the department, many of the businesses have closed down their operations without paying the dues.
South Korean diplomats and business leaders in Vietnam say the problems are due to confusion over Vietnamese law and to the global economic downturn.
At a meeting Monday with Labour Federation leaders, Hong Sun of the Korean Chamber of Commerce said Vietnam frequently issues new legal documents that Korean businesses cannot understand without timely assistance from the Vietnamese side.
"A majority of South Korean businesses in Vietnam have complied with Vietnam's laws," Hung Sun told local reporters at the meeting. "Only a small percentage of them have committed violations."
South Korean Ambassador Im Hong Jae told the meeting the global economic situation was affecting both South Korea and Vietnam, making it hard for businesses to meet payrolls.
The Labour Federation's Chinh, however, said Vietnamese workers at South Korean firms were striking due to low wages, meager benefits, and harsh work rules.
"Many South Korean firms are not following regulations, because they are in financial trouble now," said Chinh. "Most of these companies are small, and they don't want to stay in Vietnam for long. They just come to Vietnam and try to make money as fast as they can. If they find it difficult, they run away."
