Concretizing the Politburo's policy
Speaking to reporters, Mr. Phan Van Anh - Vice President of the Vietnam General Confederation of Labor - said: The 2% trade union contribution is calculated on the salary fund participating in social insurance to allocate to production costs. The employer is responsible for paying to the trade union organization to ensure that the trade union fulfills its responsibility of taking care of union members and employees, and at the same time ensures the role of the trade union in building harmonious, stable, progressive labor relations, propagating and mobilizing employees to perform well their production, business and work tasks, contributing to the stability and development of agencies, units and enterprises.
According to Clause 4, Section III of Resolution No. 02-NQ/TW dated June 12, 2021 of the Politburo on innovation of organization and operation of Vietnam Trade Union in the new situation, the tasks and solutions are stated as "... Maintaining existing resources; collecting trade union fees (KPCD) and encouraging the socialization of resources for trade unions to perform well their assigned tasks".
"Therefore, continuing to stipulate the 2% KPCCD contribution rate in the Trade Union Law (amended) aims to concretize the policy of the Politburo in Resolution No. 02-NQ/TW, in accordance with Clause 2, Article 32 of the Law on Promulgation of Legal Documents on the basis for proposing to develop laws" - Mr. Phan Van Anh said.
The report on the management of trade union finances and the management and use of assets of trade union organizations in the period of 2013-2023 serving the draft Law on Trade Unions (amended) of the Vietnam General Confederation of Labor sent to the National Assembly has reported in detail on the distribution of trade union finances and summarized data on trade union financial expenditures in 10 years.In particular, on the distribution of trade union finances: The source of trade union financial revenues in the period of 2013-2023 is mainly distributed to the grassroots trade union.
If in 2013, the grassroots trade union was only allowed to use 65% of the union fee revenue, 60% of the union fee revenue (CPDC) and 100% of other revenues.Since 2016, the Vietnam General Confederation of Labor has issued Resolution 07b/NQ-TLD dated January 21, 2016, according to which the source of union fee for the grassroots trade union increases by 1% each year.
In 2021, the distribution ratio for trade union levels is: Revenue sources at the grassroots trade union level include 71% of trade union fee revenue, 60% of trade union fee revenue, and 100% of other revenue sources; at trade unions at the grassroots level and above, the remaining part of trade union fee and trade union fee revenue is used.
From 2022, the distribution ratio for trade union levels is as follows: Revenue at the grassroots trade union level will include 75% of trade union budget revenue (3 years ahead of schedule compared to the 2025 milestone in Resolution No. 7b/NQ-TLD of the Vietnam General Confederation of Labor), 60% of trade union budget revenue.
As of 2023, the distribution rate of trade union fees and trade union fees to grassroots trade unions has increased by 10% compared to 2013. From 2023, the distribution rate for trade union levels is as follows: Revenue sources at the grassroots trade union level used include 75% of trade union fees (increased by 10% compared to 2013), 70% of trade union fees (increased by 10% compared to 2013), and 100% of other revenue sources. Trade unions at grassroots and higher levels use the remaining part of trade union fees and trade union fees.
Help the Trade Union have more resources to take care of union members and workers.
Increasing the level of trade union financial distribution helps grassroots trade unions have more resources to care for and protect union members and workers, creating a premise for implementing tasks according to Resolution No. 02-NQ/TW of the Politburo on innovation of organization and operation of Vietnam Trade Union in the new situation.
In particular, the proportion of expenditure at each specific trade union level is as follows: Expenditure at grassroots trade union level accounts for 74.43%; expenditure at the level of trade unions directly above the grassroots level accounts for 14.5%; expenditure at the level of provincial, municipal, industry and equivalent labor federations accounts for 10.0%; expenditure at the Vietnam General Confederation of Labor accounts for 0.57%.
In the total expenditure of the grassroots-level Trade Union (including 3 levels: Trade Union at the grassroots level directly above the grassroots level, Provincial and City Labor Federations and equivalent, Vietnam General Confederation of Labor), the expenditure that the grassroots-level Trade Union spends to directly organize activities for union members and workers at the grassroots Trade Union, and expenses for activities to care for workers at units that have not yet established a grassroots Trade Union (expenses for rewards, visits, hardship allowances, cultural and sports activities, expenses for establishing a grassroots Trade Union...) accounts for 12.33% of the total expenditure of the 4 levels of trade unions.
Thus, the total actual expenditure for the grassroots union level accounts for 86.76% of the total expenditure of the 4 union levels (=74.43% + 12.33%).
