30% of workers are often in need

Avatar of Nick John By Nick John Dec7,2023 #often #workers
30% of workers are often in need 7
30% of workers are often in need 7

At the conference on minimum wages organized by Urban Economics newspaper on June 16 in Hanoi, Mr. Vu Minh Tien, Director of the Trade Union Workers, Vietnam General Confederation of Labor, said the survey was direct.

Before each meeting to adjust the minimum wage, the union often surveys working life and in the past 5 years, it has always shown that the rate of over 30% is in poverty, has no savings, and often borrows when it is time to pay for school.

`I have never met any worker who borrows money to invest in real estate. They only borrow money to meet immediate living needs,` Mr. Tien said, adding that workers don’t work overtime every month and their children are sick or their parents are gone.

Mr. Tien analyzed that the regional minimum wage has been adjusted by 6% from July 1, but the continuous increase in gasoline prices has caused prices to escalate, making workers’ lives even more difficult.

Employees currently only know their actual income after deducting social insurance and health insurance contributions… but do not know how much salary the business is paying.

According to Mr. Tien, in collective negotiations, grassroots unions need to negotiate to raise the basic salary level for workers.

Experts warn that there is a situation where some businesses choose the negative option of adjusting salary increases but cutting allowances.

Dr. Vu Minh Tien, Institute of Trade Union Workers at a workshop related to minimum wages, June 16.

Ms. Ha Thi Phuong Anh, President of Plummy Joint Venture Garment Company’s Union, said the business has more than 700 employees with a female ratio of 93%.

She analyzed that the minimum wage of 4.68 million VND applied two years ago could be `temporarily okay` if workers save and have a monthly reserve.

`50% of workers will definitely have to borrow money at the end of the month if their children get sick or go to the hospital that month,` Ms. Phuong Anh affirmed.

30% of workers are often in need

Dinner for a pair of workers in the North Thang Long Industrial Park (Hanoi) was cooked right in the motel room, February 2022.

In suburban areas, it is difficult for workers to send their children to public schools when the children finish school at 5:00 p.m. and their parents work overtime until 6:30 p.m.

Ms. Phuong Anh gives the example of a rural couple with an income of 12 million VND per month, raising two young children in elementary school and kindergarten. Even if they are as frugal as possible, they still have to spend about 6-7 million VND per month, not including money.

To make ends meet, most workers in the factory choose to work overtime and earn about 7.5 million VND after overtime, depending on the department, some people get over 10 million VND.

`As both union officials and workers, we expect industry levels to continue to have policies to support workers, in addition to increasing the minimum wage,` she said.

She hopes that after the dialogue with the Prime Minister on June 12, the petitions of workers nationwide on housing support, credit… will be resolved by all levels;

30% of workers are often in need

The frugal life of industrial park workers

The frugal life of families of workers in North Thang Long Industrial Park (Hanoi) in 2015 – when the union survey showed that `33% of workers lived miserably`.

Discussing long-term solutions, Ms. Nguyen Lan Huong, former Director of the Institute of Labor and Social Sciences, said that Vietnam’s approach to the monthly minimum wage is mainly based on labor contracts.

The annual salary increase debates and negotiations only stop the % increase, what really has to be calculated is the coverage of the minimum wage and how to pay the groups.

Adjusting the minimum wage plus increases due to increased gasoline prices will `consume` a large part of the business’s costs.

The first application of the hourly minimum wage from July 1, ranging from 15,600 to 22,500 VND, according to Ms. Huong, is too low and may lead to some unexpected impacts, such as making employers

From July 1, the monthly minimum wage will increase by 6%, equivalent to 180,000-260,000 VND compared to the current rate.

Previously, the minimum wage remained the same from January 1, 2020 for region I at 4.42 million VND;

Statistics on January 15, 2020, the selling price of E5 RON 92 gasoline is 19,845 VND per liter, RON 95 gasoline is 20,913 VND.

On June 13, domestic retail gasoline prices set a new record.

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