Requesting the company to pay more than 833 million VND to workers
The People's Court of Bien Hoa City (Dong Nai) recently announced the reopening of the first-instance trial of the labor dispute over wages (expected to take place on June 12, 2025) between the plaintiff, the Executive Committee of the Trade Union of Kobelco E&M Vietnam Co., Ltd. and the defendant, Kobelco E&M Vietnam Co., Ltd. (Bien Hoa 2 Industrial Park, Bien Hoa City).
Mr. Tran Huy Binh - Chairman of the Trade Union of Kobelco E&M Vietnam Co., Ltd. represented the company's 93 employees to demand legal and legitimate rights. According to the lawsuit, because the company did not have an order, from July 2024, employees had to stop working. The salary that the company pays to employees is calculated according to the basic salary (VND 5,573,000) divided by the number of working days in the month (24 working days) and multiplied by the number of days of actual work stoppage. However, the company did not agree and proposed the above salary to pay the employees. This causes disadvantages for workers' rights.
The employee petitioned and the Trade Union of Kobelco E&M Vietnam Co., Ltd. organized a dialogue with the company, but was unsuccessful. On August 16, 2024, the Dong Nai Industrial Park Management Board and the Bien Hoa Industrial Park Trade Union worked with the Trade Union and the company's board of directors to request the company to dialogue and negotiate the payment of severance pay to employees, but the company did not comply with the petition, the company stated.
Therefore, the Trade Union of Kobelco E&M Vietnam Co., Ltd. filed a lawsuit requesting the court to consider the request forcing the company to pay additional wages for the difference between actual wages and wages applied by the company to employees of VND 5,573,000 from July 2024 to September 2024. The total amount of additional payment requested by the company to the employees is more than 833 million VND.
Request to increase wages for employees by at least 7.63%
In addition to the above case related to the salary for severance pay, the Bien Hoa City People's Court has also notified the Executive Committee of the Trade Union of Kobelco E&M Vietnam Company about the acceptance of the case to resolve according to regulations related to salary increases.
Accordingly, Bien Hoa City People's Court has received a lawsuit from the union executive committee dated May 12 regarding the "Collctive labor dispute over rights and benefits related to wages".
The lawsuit stated that according to the basic annual salary increase regulations (November 15, 2018), the company must increase salaries for all employees in the company every year at a rate of 4% of level 10 + CPI (consumption price index) of the previous year. In 2024, Vietnam's CPI will increase by 3.63%, wages must increase by 4% + 3.63% = 7.63%.
The issue of salary increase under this regulation has been signed by the collective of employees and the company. In addition, the Collective Labor Agreement signed by the company and the Trade Union also stipulates the annual salary increase for employees in accordance with the regulations, the salary increase time is January every year. However, on January 10, 2025, the company unilaterally issued a document "2024 bonus level and basic salary increase in 2025". According to this document, all employees at the company are only entitled to a salary increase of 4% of the salary level they are receiving.
The company's salary increase is not in accordance with the regulations and labor agreements, so the Executive Committee of the Trade Union has submitted a request for mediation. On May 8, 2025, the Department of Internal Affairs of Bien Hoa City organized a mediation session but was unsuccessful. The company believes that business has not been profitable for many years and up to now has been negative for 117 billion VND, so the salary increase for employees in 2025 is only 4%.
Therefore, the Trade Union of Kobelco E&M Vietnam Co., Ltd. filed a lawsuit requesting the People's Court of Bien Hoa City to consider and resolve the request to force Kobelco E&M Vietnam Co., Ltd. to raise wages for employees by at least 7.63% according to the salary increase regulations and Collective Labor Agreements signed by both parties; request the company to calculate and compensate for the remaining salary for employees from January 2025 to the date of salary increase at 7.63%.
Currently, the Trade Union Legal Consulting Center (Dong Nai Provincial Federation of Labor) is supporting the Trade Union and union members and employees of Kobelco E&M Vietnam Co., Ltd. to claim legitimate and legal rights.
According to the lawsuit, Kobelco E&M Vietnam Company has about 154 employees. When the company came into operation, the Bien Hoa Industrial Parks Trade Union came to mobilize and establish a grassroots trade union. On December 9, 2022, the Trade Union held a Congress and elected a new Executive Committee of the Trade Union. On December 20, 2022, the Bien Hoa Industrial Parks Trade Union issued a decision approving the Executive Committee of the grassroots trade union with the Chairman of the grassroots trade union, Mr. Tran Huy Binh, and 6 members of the Executive Committee.
