But the company has remained in operation as it still had stocks and customers, who subsidized the September salaries for the company’s 216 workers through product purchases.

Management had promised to remit salaries for October by November 12, but workers only received their base pay without accompanying allowances.

The company had been granted an investment certificate in July 2007, but still lacks an operation certificate. Additionally, it owes the local social insurance agency most of the workers’ social insurance contributions for their retirement funds.

Thu Duc District Labor Union has banned the company’s operation starting today and will help workers file a lawsuit to get their work and insurance benefits, Truong Lam Danh, vice chairman of HCMC Labor Union, said.

Tran Thi Hanh, deputy head of Thu Duc District, has asked local labor agencies to intervene in the matter. Also Wednesday, Binh Tan District Labor Union informed that four companies in the district, of which three are foreign-backed, had halted operations last month without prior notice, leaving around 2,000 workers jobless.

Meanwhile in Hanoi, hundreds of Hoa Sao Company’s employees went on strike Wednesday to demand higher salaries and allowances and the right to form a union.

Employee Bui Thi Hong Dung said 400 workers stopped working Wednesday evening to complain about low salaries and long working hours. Some have been working for entire months from 8 a.m. to 10:30 p.m. daily.

Pham Ngoc Tu from the company’s management board refused to comment on the case.

Over the last two days, 600 workers of Dai Cat Tuong Garment Company in central Quang Ngai Province also stopped working as they have not been paid their entire salaries for the past three months.

Da Nang City administration Wednesday reported that more than half of workers around the city have social insurance contributions withheld by their companies instead of being sent to the local insurance agency.

Reported by Thanh Nien staff