Efforts to negotiate a wage increase for workers
On October 29, Mr. Luu Kim Hong - Chairman of the Trade Union of Nidec Vietnam Company (Ho Chi Minh City High-Tech Park) - said that in mid-October 2024, after more than 3 months of discussion and negotiation between the Trade Union and the company's board of directors, the two sides agreed to increase salaries for all employees in the company.
The increase applied to each job position ranges from VND300,000 to VND773,000/person/month. In addition to the salary increase for nearly 3,500 employees of the company, some positions also receive an increase in salary allowance from VND60,000 - VND150,000/person/month. What is special is that this salary increase and salary allowance are "retroactive", applied from July 1, 2024.
Mr. Hong said that after the State decided to increase the regional minimum wage from July 1, although the company's basic salary was higher than 4.96 million VND/month (region I minimum wage), the company increased the basic salary for all employees every year, but the employees still wanted to increase their salary when the Government adjusted the regional minimum wage.
Understanding that psychology, the Trade Union proposed to negotiate with the company to increase the basic salary for employees. After more than 3 months of discussion and negotiation, even at times quite tense, the company's board of directors finally agreed to the salary increase and salary allowance according to the plan proposed by the Trade Union. Furthermore, although the company requested to keep the information confidential, the Trade Union, based on the provisions of the law, requested the company to publicly announce the salary increase agreement and the increase level so that all employees of the company would know.
“After agreeing on the salary increase and salary allowance, the Trade Union also sent a letter to all employees, stating that if we only calculate the lowest increase of 300,000 VND/person/month, then with nearly 3,500 people, the company will have to spend more than 1 billion VND in salary every month. Meanwhile, our work efficiency and productivity have not increased correspondingly so that the company can compensate for that part. Therefore, the Trade Union hopes that all employees have a two-way view, try to work hard so that the company can see that when they get a salary increase, employees also try to work hard. If each person just tries a little bit, nearly 3,500 people will produce better results, that is the premise for us to negotiate for the next time” - Mr. Hong shared.
Include benefits in collective bargaining agreements
Collective labor agreements (CLAs) are considered as “sub-laws” in enterprises. Once issued, they will be binding on both employers and employees to comply. Therefore, many trade unions in Ho Chi Minh City have made efforts to negotiate and include benefits for union members and employees in the CLAs.
Mr. Tran Van Muoi Hai - Chairman of the Trade Union of Duy Tan Plastic Joint Stock Company (Binh Tan District, Ho Chi Minh City) - said that the Trade Union has proactively proposed to the enterprise to include in the Collective Labor Agreement a regulation to increase salaries once a year from 5% to 15% for all employees; support all employees with an additional allowance of VND 552,000/person/month; support accommodation for employees with difficult housing circumstances of VND 500,000/person/month; organize vacations for all employees at least once a year, and excellent employees are selected to travel abroad every year.
During the Lunar New Year, in addition to the 13th month salary, employees classified as A will receive an additional 2 months salary; employees classified as B will receive 1.5 months salary; employees classified as C will receive 1 month salary; employees classified as D will receive 0.75 months salary. In the past 2 years alone, the company has given Lunar New Year bonuses to employees worth nearly 40 billion VND. In particular, the company also rewards employees with 0.5 taels of SJC gold to 2 taels of SJC gold depending on the number of years they have worked for the company. As a result, 509 employees were awarded 102.6 taels of SJC gold.
The collective labor agreement of Hung Vuong Construction Company Limited (District 10, Ho Chi Minh City) stipulates that the company is responsible for ensuring employment for employees throughout the duration of the labor contract; employees who have to take time off due to lack of orders or due to electricity or water problems are entitled to 100% of their salary according to the labor contract; in addition to the days off prescribed by law, if the husband has a wife giving birth (first and second time), the employee is entitled to 5 days off with full pay.
In addition to annual salary increases, the company will consider raising salaries ahead of schedule when employees have additional qualifications and certificates suitable for the job they are doing, or when employees have initiatives that generate profits of 200 million VND or more...
