The role of representatives

Since the establishment of National Wages Council and first meeting in 2013, it has never been witnessed tense as in three meetings this year between representatives of workers and representatives of employers.

Workers want higher wages as much as possible but enterprises (companies) want an increase by as little as possible. This does not need to investigate to know the results. But the question that how much increase is reasonable and beneficial to workers and also to share with businesses?

Representative of workers is Vietnam General Confederation of Labors proposed an increase to 16.8% or the lowest should be 14.3%. To protect the views and interests of employees, alot of persuasive arguments have been put forward. For example to ensure minimum needs of life for employees, workers can eat enough for dedication; macroeconomic now is much better; increase of wages to boost scientific and technological innovation ...

Even before the time of voting to approve the plan for waves increase, a member of the representing council for workers assured that if it does not reach at least the salary increase in 2015 (up 14.3%), he will let an abstention or will not vote.

On the opposite side, representative for employers is Vietnam Chamber of Commerce and Industry (VCCI) recommended maximum increased only 10%. VCCI also had a lot of arguments to defend their plan, such as more difficulties to hardly afford the high cost of salary increases; rose of social insurance; risk of unemployed workers because enterprises go bust; wage increases does not match with labor productivity growth ...

Even when the plan to increase salaries in next year was passed, Mr. Hoang Quang Phong, Vice President of VCCI still spoke directly to the press that he was not really satisfied. According to him, the businesses meet many difficulties to compete for integration, so new growth will be too hard to pay.

Finally, the plan to increase the minimum wage in 2016 was adopted as an average increase of 12.4% in comparison with 2015. The selected increase of salaries was almost the average distance between the two alternatives proposed by the representatives of workers and employers.

As commented by Dr. Vu Quang Tho, Director of Institute of Workers - Unions (Wages Council members): "This negotiation is extremely difficult but it shows democracy especially in sensitive issues related to the salary of the employees”.

Debate, negotiation and then come to an end that seems “balance” for both sides is essential. Over here, it also shows a more positive sign: The role and responsibilities of organizations representing both workers and business owners have been improved markedly.