Dismissals at Garmex Saigon, Vietnam - 2023
Due to a lack of orders, Garmex Saigon laid off around 1,800 workers in its five factories in Ho Chi Minh City, Vung Tau and Quang Nam at the end of 2022. At the end of 2023, the company laid off another 1,900 employees and paid compensation totaling 11 billion Vietnamese Dong (419.364 Euros). According to Vietnam Express International, this compensation was six times lower than the compensation paid to the smaller number of laid-off workers in the previous year. According to Vietnamese labor law, severance pay must be paid in the event of redundancies, depending on the wage level and length of employment. This is in doubt due to the much lower compensation payments in the second wave of redundancies. As the redundancies were made due to a drastic decline in orders, it is questionable whether the clients implemented a responsible exit strategy.
Basic Information
Case ID: 2023-001
Identification Number from Open Supply Hub (OS-ID): VN2020016R2X2FQ
Affected Country: Vietnam
Social Sector Risks concerned:
- Dismissals / factory closures
Supplier Details
Garmex Saigon
252 Nguyen Van Luong, Ward 17
Go Vap District
Ho Chi Minh
Vietnam
Supplier Website: http://www.garmex.vn
Production Site
Garmex Saigon
252 Nguyen Van Luong, Ward 17
Go Vap District
Ho Chi Minh
Vietnam
Total number of workers/employees:
3.900
No gender specific information available.
Workers movement
No information about unions available.
No information about workers commitee available.
Business Relations
Known Buyer/Brands:
- Amazon EU S.á.r.l.
- Columbia Sportswear GmbH
- DECATHLON Deutschland SE & Co. KG
- IKEA Deutschland GmbH & Co. KG
Source of information buyers:
https://www.vietnam.vn/en/chuyen-cua-ong-lon-det-may-tu-4-000-nhan-vien-con-37-nguoi/
At least one of the buyers has the duty to report according to the Supply Chain Act / CSDDD.
Follow up
Are there any reactions to the follow up: no information
Sources
Source of information about the case:
Contributor: SÜDWIND
- Last updated on .