Minimum wage increase 2016: Difficult to find common ground

The final answer to the question of how much the minimum wage will increase in 2016 is still undecided because the proposals of the parties are too different.

The National Wage Council met for one day (August 5) to discuss the 2016 regional minimum wage increase plan but has yet to reach an agreement. Chairman of the National Wage Council, Deputy Minister of Labor, Invalids and Social Affairs Pham Minh Huan said: "In the next two weeks, technical departments will work together to recalculate more feasible plans."

Minimum wage does not meet minimum living standards

The reason for not reaching an agreement on the 2016 regional minimum wage increase is the huge difference between the proposals of business representatives and workers. Specifically: The Vietnam General Confederation of Labor proposed an increase of 16%, while the Vietnam Chamber of Commerce and Industry (VCCI) proposed a 6%. According to Deputy Minister Huan, by late afternoon, VCCI had made a new proposal, increasing the minimum wage by 10%.

It is easy to understand why it is “difficult to reach an agreement” in the discussion about salary issues. Because of the common mentality that “the person who spends 1 dong thinks it is a lot, the person who receives 1 dong always thinks it is little”. Therefore, finding a common voice in difficult economic times is not simple.

Dr. Vu Quang Tho - Director of the Institute of Workers and Trade Unions said: "Business owners always complain about increasing costs, but when workers receive them, they will say that the salary is not worth anything. That is the common mentality. The most important thing is how to arrange the interests of both sides."

Wage increases have been clearly stipulated in the Laws such as the Labor Law, the Social Insurance Law, etc. and the Central Government has also issued a Resolution on the roadmap for wage increases, aiming to ensure the minimum living needs of employees. Currently, according to a survey by the Institute of Workers and Trade Unions, enterprises have paid employees above the proposed salary, "even equal to the current salary proposed by the General Confederation of Labor. In Hanoi, there are many enterprises paying at the level currently proposed by the General Confederation of Labor" - Mr. Tho said.

However, according to Mr. Tho, with such a salary, workers have to be very frugal to survive. They have almost no savings, only ensuring the minimum daily living, if their children get sick, go to the hospital or the workers themselves, it will be extremely difficult.

“The dream of having a dormitory is very difficult, not to mention a house and a plot of land is extremely difficult. Therefore, I think that the proposal of the General Confederation is also appropriate, linked to the minimum living needs” - Mr. Tho said and said that the “worst” increase is 15%.

In an exchange with VOV.VN, Chairman of the Vietnam General Confederation of Labor Dang Ngoc Tung complained that businesses still say they care about workers' lives, but the Labor Confederation proposed increasing the value of meals from 15,000 to 20,000, but it has been considered for a long time and still has not been increased.

Conflicting reported numbers?

According to the Government's report, in the first 6 months of 2015, the number of newly established enterprises and registered capital increased, while the number of enterprises facing difficulties, temporarily suspending operations and dissolving decreased compared to the same period. Budget revenue was quite good. Social security and social welfare continued to be guaranteed; people's lives improved; education, health care, culture and sports achieved many positive results.

In Hanoi alone, the growth in the first 6 months of the year was the highest in the past 4 years. Budget revenue was also better, with many districts achieving or exceeding it.

However, according to a survey by VCCI, many businesses are facing difficulties, with up to 70% of businesses not making a profit. “The issue of increasing wages is a big burden for them. Therefore, they agree on the policy of increasing wages, but there needs to be a roadmap. We know this and we will try to negotiate to ensure a suitable level, ensuring the requirements of increasing the minimum wage and ensuring the development of businesses” - said Mr. Hoang Quang Phong - Vice President of VCCI.

According to reports from trade unions at all levels, in 2015, 85-90% of enterprises (with trade unions) subject to adjustment have implemented it. According to Decree 103/2014/ND-CP, the average increase rate of minimum wage in the regions in 2015 was 14.3% compared to 2014, but the corresponding increase rate of actual wages of employees in enterprises was only about 12%. And the increase in minimum wage does not cause sudden changes in costs for enterprises.

According to a survey by the General Confederation of Labor at 60 enterprises, enterprises (especially FDI enterprises with accounting from parent companies abroad) all believe that the increase in minimum wage in 2015 will not have much impact on production and business and will strictly comply when the State announces the minimum wage in 2016.

On the VCCI side, Mr. Hoang Quang Phong said: "Once the law is issued, it must be implemented. However, the parties must have appropriate recommendations on how to implement it."

In 2014, the National Wage Council had to meet three times to agree on a plan to increase wages in 2015./.

According toVov.vn