Bien Hoa City People's Court has notified the Executive Committee of the Trade Union of Kobelco E&M Vietnam Co., Ltd. (Bien Hoa 2 Industrial Park, Bien Hoa City) about the acceptance of the case to resolve according to the regulations on "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%, salary increase must be 4% + 3.63% = 7.63%.
The issue of raising wages according to this Regulation has been signed by the employee and the company. In addition, in the collective labor agreement signed by the company and the grassroots trade union, it also stipulates that the annual salary raising for employees in accordance with the regulations, the time of salary raising 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.
After this announcement, the Executive Committee of the grassroots Trade Union 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 for many years, business has not been profitable and has been negative for 117 billion VND, only increasing salaries for employees in 2025 by 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%.
In addition, Mr. Tran Huy Binh - Chairman of the Trade Union of Kobelco E&M Vietnam Co., Ltd. is also representing the company's 93 employees to demand benefits for another content, which is paying severance pay, with the total amount of money requested for the company to pay the employees is more than 833 million VND. The Bien Hoa City People's Court is preparing to bring this case to trial.
Currently, the Trade Union Legal Consulting Center (Dong Nai Provincial Federation of Labor) is supporting the grassroots Trade Union and union members and employees of Kobelco E&M Vietnam Co., Ltd. to demand legal and legitimate rights.
Kobelco E&M Vietnam Co., Ltd. manufactures pressure tanks, towers, heat exchangers and has about 154 employees.
