Why are so few unemployed workers receiving Covid-19 support packages?

Due to the impact of the Covid-19 epidemic, hundreds of thousands of workers nationwide have been affected, including workers working in enterprises and industrial zones who have suspended their labor contracts or have taken unpaid leave at enterprises that are considered to be in the group that is eligible for the 62 trillion VND support package. However, according to data from the Ministry of Labor, War Invalids and Social Affairs, so far only 418 workers in this group have benefited. This is a very small number! So why are only that many workers eligible for this support package, while thousands of workers in industrial zones across the country are still having extremely difficult lives?

In the afternoon, in the North Thang Long Industrial Park, Hanoi, groups of workers hurriedly returned to their shabby dormitories after work. Ms. Nguyen Thi Hoai - a worker at Canon Vietnam Company said that in March and April, factory workers had every other day off, working during the week and taking the weekend off, so their income decreased, making life, which was already difficult, even more difficult.

"The company ran out of components for a few days so they let me off. I have a few days off a week. I get 70% of my salary when I take a break. Life is hard so I have to go to the market to earn extra money to make ends meet" - Ms. Hoai shared.

The situation of Ms. Nguyen Thi Dung - also a worker in the neighboring boarding house - is not very bright. Although she still has to take a break from eating, it is not enough for a continuous month off as required by the Government, so Ms. Dung cannot receive the support package.

"The company has not arranged jobs for the workers, so some people have to quit. Before that, we also had to sign a temporary unpaid leave contract and the company informed us that when it could arrange jobs for the workers, it would call. I only had to quit for 20 days and receive the minimum wage of the region," said Ms. Dung.

Luckier than the workers in Bac Thang Long Industrial Park, a worker who asked not to be named in Sai Dong Industrial Park, Long Bien District (Hanoi) has not yet been able to receive support money from the Government, even though his family's economy is facing many difficulties.

"The company informed me that I am eligible for the government's support package. The company also completed the procedures, but I still haven't received any money," a worker shared.

These are the concerns of workers affected by the Covid-19 pandemic. They have been laid off, lost their jobs, had their salaries reduced… but it seems that very few workers are eligible to receive the Government’s support package.

According to the Hanoi Department of Labor, War Invalids and Social Affairs, as of June 4, 94 enterprises have submitted applications for 1,881 workers working under labor contracts who must agree to suspend their labor contracts and take unpaid leave for 1 month or more. However, only 4 enterprises with 50 eligible workers have been decided to pay. Compared to the nearly 2,000 workers of 94 enterprises requesting support, this is too modest.

According to the feedback of some business owners and employees, the problem lies in the fact that to receive this support package, employees must have a written agreement to temporarily suspend the performance of the labor contract or take unpaid leave due to the impact of the Covid-19 epidemic for 1 month or more and they must be participating in compulsory social insurance. If meeting the above conditions, employees can receive support of 1.8 million VND/month for a support period of no more than 3 months, from April to June 2020.

With such strict conditions, many workers are unlikely to qualify because although many businesses let their employees take time off due to the impact of the Covid-19 epidemic, it is a month-long leave instead of a full month. In addition, Mr. Nguyen Hong Dan - Deputy Director of the Hanoi Department of Labor, War Invalids and Social Affairs said that according to regulations, if a business sends a financial report showing that it still has revenue and a source to pay salaries to employees, the employees of that business will not be supported.

"This is one of the prescribed criteria, so it is very difficult because in reality, there are businesses that are facing difficulties due to the Covid-19 epidemic and can only support about 30% of workers who have quit their jobs. Obviously, the workers have quit their jobs, but 70% of them continue to operate. So, in that business, there is still revenue. Therefore, 30% of workers have quit their jobs due to certain conditions, so they are not supported. We will continue to make recommendations to resolve this, because the ultimate goal is to support workers who are having difficulty and have actually quit their jobs," said Mr. Dan.

Although tens of thousands of workers have been affected by the Covid-19 pandemic and have lost their jobs for months, with the regulation that workers whose labor contracts have been suspended without pay since April, May, and June will be supported, workers whose labor contracts have been suspended before April 1 will not be eligible for this support package. This is also a barrier that makes the number of eligible workers very small.

Due to the Covid-19 pandemic, many businesses are facing difficulties in production and business. As a result, workers are unemployed, have had to work overtime, and have unstable incomes. Photo courtesy of PV

According to Mr. Ta Van Duong - Head of the Legal Policy Department, Hanoi City Labor Federation: Resolution 42 and Resolution 15 of the Government stipulate that if enterprises are supported with loans to pay wages for workers during suspension of work, the workers themselves are not entitled to the support package due to contract suspension and unpaid leave. Thus, enterprises are only entitled to one of these two support packages. Even for those who have lost their jobs, payment is even more difficult, Mr. Ta Van Duong said: This is a group of subjects who are not under the management of enterprises but are temporarily or permanently residing in localities and residential groups and they self-declared and submitted documents to authorities at all levels according to Resolution 15.

"The current difficulty is that if a worker is temporarily residing in Hanoi and wants to receive the unemployment support package in Hanoi, he/she must prove and have confirmation from his/her permanent residence that he/she is not receiving the support package in the locality in order to receive this support package in Hanoi and vice versa. This causes many workers to encounter difficulties and are afraid to apply," said Mr. Duong.

Responding to the question of whether the Vietnam General Confederation of Labor is aware of this situation, Mr. Vu Manh Tiem - Deputy Head of the Propaganda Department, Vietnam General Confederation of Labor said: This agency has recognized the shortcomings in the conditions that workers need to have to enjoy the support package and has consulted with the Government and the Ministry of Labor - Invalids and Social Affairs. At the same time, it continues to collect difficulties in the process of implementing the support package to workers to find solutions. In addition, the Vietnam General Confederation of Labor has also allocated 500 billion VND from the union budget to support workers facing difficulties due to the Covid-19 epidemic. Currently, grassroots unions are making a list of workers who are eligible for this policy of the Vietnam General Confederation of Labor.