LABOR CONFEDERATION INSISTS ON 16.8% WAGE RISE

Speaking at a meeting on wages, incomes and living standards of employees in 2015 in Hanoi on August 13, Le Trong Sang, National Assembly deputy and head of labor relations at the confederation, said the agency had gathered sufficient evidence to defend its minimum wage rise proposal.

Sang said the confederation wants the highest rise of VND550,000 for region one, VND450,000 for region two, VND400,000 for region three and VND350,000 for region four.

“We are determined to defend our proposal,” Sang said after referring to results of the survey.

The confederation surveyed 1,600 workers at 60 enterprises, mainly in the sectors of textile, garment, footwear, construction, transport, mechanical engineering, electronics and processing. Those enterprises are located in Hanoi, Yen Bai, Nam Dinh, Vinh Phuc, Hai Duong, Thua Thien-Hue, Danang, HCMC, Can Tho and Ben Tre. 

The survey found the average wage of workers is VND3.817 million per month, with VND4.369 million in region one, VND3.86 million in region two, VND3.811 million in region three and VND3.225 million in region four. These wages are 10-14% higher the figures shown in the labor contracts signed between them and their employers.

In addition, laborers get overtime pay, bonuses for good performance and other allowances.

Non-wage incomes account for 20-25% of the total, meaning that minimum wages make up 75-80% of a worker’s total incomes, according to Mai Duc Chinh, vice president of the labor confederation.

“Therefore, laborers will earn less and face difficulties in the months they do not work overtime,” Chinh said.

Despite low incomes, workers spend a lot on their basic needs. According to the survey, their monthly expenditures for their children average VND4.247 million, a 3.6% rise against last year. In specifics, the figure is VND4.91 million for region one, VND4.29 million for region two, VND3.95 million for region three and VND3.51 million for region four.

According to Chinh, in regions one and two where there are industrial parks, workers have to pay house rental with a minimum of VND700,000 per month for a small apartment for three persons, VND50,000 (15kW/person) for electricity, VND100,000 for water (eight cubic meters/person), and VND1.5 million for monthly childcare expenses.

“Workers said their lives are tough when incomes and expenses are taken into account. Nearly 20% of them said their incomes are not enough, over 30% spend money very economically, over 40% earn barely sufficient incomes and only 8% save some money,” Chinh said.

Sang said defending the proposed minimum wage raise of 16.8%, the labor confederation would keep asking the Government for a road map to increase wages to ensure workers could use their incomes to cover their expenses.

Le Nho Thuong, vice chairman of the textile-garment labor union, agreed on increasing regional minimum wages but insisted minimum wage increases should be made in a way that benefit the nation, the employer and the employee.

As estimated by apparel enterprises, if the minimum wage goes up by 15%, a business with 10,000 laborers would have to pay additional operating costs of around VND80 billion.

Source: The Saigon Times