Businesses increase wages but do not cut benefits

​That is one of the contents proposed by the Ministry of Labour, Invalids and Social Affairs and the Vietnam General Confederation of Labor (Confederation of Labor) for businesses to implement when implementing the increase of regional minimum wage in the early July.

Workers at enterprises waiting for a salary increase this July

Efforts to negotiate the regional minimum wage for employees

According to Ms. Nguyen Thi Minh, member of the Executive Committee of the Trade Union of Eclat Textile and Garment Company Limited, Nhon Trach District, the salary of workers without overtime is over VND5 million per month. With this salary, it is difficult for employees to "burden" with the current escalating prices. Therefore, the increase of regional minimum wage must be accompanied by good benefits to ensure the life of employees. Therefore, in the past few days, the Company's Trade Union has made efforts to negotiate to reach a reasonable salary for employees, as well as a basis for employees to be guaranteed long-term benefits.

Ms. Nguyen Thi Thanh Tin, Deputy CEO, Chairman of the Union of Chien Furniture Manufacturing Company Limited (Bien Hoa City) said that the company's employees currently have a basic salary of over VND5.3 million per person per month, higher than the regional minimum wage that is about to be applied, so it is difficult to negotiate salary adjustment in the next month according to regulations. To retain employees, in early 2022, the company increased wages for all employees. Currently, the Trade Union and the company are meeting to find the most suitable solution, but still make efforts to maintain the benefits for employees.

In enterprises that have increased wages since the beginning of the year for employees, the grassroots trade union is negotiating to further increase the regional minimum wage in July. Ms. Le Thi Hai, working at Dona Pacific Vietnam Co., Ltd, Trang Bom District said that in April, she received a 3% salary increase from the company. Currently, although the salary of workers is higher than the regional minimum wage, the salary of VND6-7 million per month (including overtime) is still low. In addition to wages, workers must be entitled to allowances and especially overtime to ensure their living standards.

Maintain the benefits for employees

Facing the above difficulties and obstacles, the Ministry of Labour, Invalids and Social Affairs and the Vietnam General Confederation of Labor have issued guiding documents on the adjustment of regional labor law for employees. Accordingly, the two units above requested the localities to direct the Departments of Labour, Invalids and Social Affairs to coordinate with the Dong Nai Industrial Zones Authority, export processing zones, local trade unions and relevant departments and agencies to quickly organizing the propaganda, disseminating and guiding employers and employees in the area to implement the increase of regional minimum wage in accordance with the provisions of Decree No. 38/2022/ND-CP stipulating the regional minimum wage level for employees working under the employment contract.

Specifically, in terms of mechanism and subjects of application, the monthly regional minimum wage level and the hourly regional minimum wage level are the lowest wages as a basis for employees, the Trade Union and the employer to negotiate the salary and pay the employees. For employees who are receiving salary in other forms of payment such as weekly, daily, product-based, package salary, etc., the salary being paid in the form of conversion by month or hourly but must not be lower than the regional minimum wage regulated by the Government.

Regarding implementation responsibilities, the employer is responsible for reviewing the agreements in the labor contract, the collective labor agreement and the regulations of the employee to adjust and supplement accordingly. It is not allowed to remove or reduce salary regimes when employees work overtime, work at night, compensation in kind and other benefits according to the provisions of labor law.

For the contents agreed and committed in the labor contract, labor agreement or other lawful agreements that are more beneficial to the employee than those specified in Decree 38/2022/ND-CP, the continuation shall be performed, unless otherwise agreed by the parties. Accordingly, the contents that have been implemented, including the salary paid to employees who perform jobs or titles that require vocational training or vocational training at least 7% higher than the regional minimum wage continue to be performed.

Mr. Le Dinh Quang, Deputy Head of the Legal Policy Department of the Vietnam General Confederation of Labor, said that the expansion of the regional minimum wage will now contribute to ensuring the rights of employees, especially those who work incompletely by day and month in the informal economic sectors. In particular, the agreement to increase wages to ensure the interests of employees depends greatly on the negotiation capacity of the grassroots Trade Union and the participation of employees in dialogues and collective bargaining for the interests of themselves.

At the grassroots trade union briefings in June 2022, Vice Chairman of the Provincial Labor Confederation Ho Thanh Hong suggested grassroots trade unions to proactively monitor the situation of labor relations in enterprises; support and guide the adjustment of regional minimum wage and handle arising problems, minimize the occurrence of labor disputes, ensure the maintenance of harmonious, stable and progressive labor relations in enterprises.

Phong Lan