Many Vietnamese workers are upset by the meagre 10 per cent suggested pay increase proposed by the Vietnam Chamber of Commerce and Industry for next year's national minimum wage.

Representatives from labour and business groups failed to reach agreement on the minimum wage increase at a second meeting yesterday.

The Vietnam General Confederation of Labour (VGCL) proposed a 16.8 per cent (VND350,000-550,000) increase while the Vietnam Chamber of Commerce and Industry (VCCI) said only 10 per cent boost would be suitable.

"We can't raise the regional minimum wage by 16.8 per cent." said Hoang Quang Phong, vice chairman of the VCCI. "Because it would mean employers would face financial burdens."

Raising the minimum wage was necessary, but it should be based on the ability to pay, Phong said.
Mai Duc Chinh, vice chairman of VGCL, said that its proposal of 16.8 per cent was made based on meeting basic living costs. Chinh said that a survey conducted by the VGCL showed that the minimum wage was about VND1 million ($44) lower than the earnings needed to cover basic living expenses.
The survey also showed that about 62 per cent of workers in the country didn't have savings, and 20 per cent said the minimum wage could not cover their basic living costs, he said.

Dinh Tuan Kiet, chairman of the trade union at Vi Chau Company Ltd., in District 7, HCM City said that all workers in his company were very upset when hearing that there was no agreement yet.

I don't know why VCCI just proposed a 10% increase while the lives of workers, especially those in the suburbs are very difficult, Kiet said. In fact, many enterprises have been finding ways to pay extra money for workers when realising that they can’t live on the minimum wage. Has the VCCI ever visited a worker's home to see how hard their life is?"

Kiet said that the 16.8% rise proposed by the Vietnam General Confederation of Labour was reasonable as it could ensure basic living conditions and mean businesses had happier workers.

Nguyen Thi Thu Thuy, a worker at a foreign-invested company in Thu Duc District, HCM City also said that it was unfair for workers when VCCI just consider the benefits of enterprises when explaining their 10% wage increase proposal.

"After three weeks waiting for this second meeting, tens of millions of workers are feeling very disappointed with the results," Thuy said. "I know that many companies in Hanoi are paying a minimum of VND4.4 million (USD200) while in HCM City they pay from VND4.9-5 million. Therefore, all enterprises should be able to accept a 16.8% rise as proposed by the VGCL.
Dinh Cao Nghia, who is working for Vi Loi Company, Ltd., in HCM City said that the national salary council should be more objective when considering the situation.

"The officials should come closer to see how workers are living and feeling," Nghia said. "Many of us are working for ten years but still can’t buy a small house. We’re having to send our children to their grandparents because we can’t afford their study here. We’re eating poor meals every day."

The current monthly minimum wage varies depending on the cost of living of a location. The wage in Hanoi and HCM City is VND3.1 million ($137) a month, in Can Tho, Danang, Haipohong and on the outskirts of Hanoi and HCM City VND 2.75 million, in Bac Ninh, Bac Giang, Hai Duong and Vinh Phuc provinces and provincial cities VND2.4 million while in the remaining locations VND2.15 million.

A third meeting between labour and business groups is scheduled for September 3.

If an agreement is not reached at the third meeting, the national salary council will ask Prime Minister Nguyen Tan Dung take a decision.

Dtinews