During the 3 quarters of 2023, Ho Chi Minh City in particular and the whole country in general witnessed changes in the labor market when a series of large enterprises cut staff, causing workers to lose their jobs. In Ho Chi Minh City, statistics for the 10 months of 2023 showed that the unemployment rate increased by 11% compared to the same period last year.
Currently, many businesses have not yet finalized their 2024 bonus plans.
The Ho Chi Minh City Department of Labor, Invalids and Social Affairs assessed that the labor market will gradually warm up by the end of the year due to the strong increase in production demand to serve consumption during Tet. However, the labor and employment situation still faces many difficulties as many businesses have to make changes to maintain production activities.
Losing a job is more worrying than not getting a year-end bonus
Ms. Vo Thi Thanh Duyen (26 years old), who is working at a logistics company in Phu Nhuan District, said that the company has said that it will give a bonus for the Lunar New Year in 2024 but has not yet announced the specific amount of the bonus. "But this year the economy is difficult, so it is lucky to have a bonus," she said. Similarly, Ms. Tran Van Anh, a worker at a company specializing in selling travel accessories in Binh Thanh District, said: "Currently, the company is giving a lot of layoffs, so we don't know what the year-end benefits will be, but the current trend is that the company does not organize a year-end party and only gives a small bonus to employees to celebrate the New Year."
Ms. Le Thi Thu Thuy, a welfare and payroll specialist at a service company in Thu Duc City, said that her company does not often use the phrases "13th month salary" or "Tet bonus". Instead, the welfare policy will be calculated based on the employee's work performance.
"Every 3 months during the year, the company will evaluate the work performance once to reward the employees (quarterly bonus - PV ), avoiding the case where employees do not work the whole year and will not receive any bonus. At the end of the year, employees usually receive this bonus along with support from the union... Like last year, each employee of the company received amounts such as 3 million VND from the union support; 1.2 million VND for uniform allowance... Some people will receive an 8% salary increase after the evaluation", Ms. Thuy said.
A quick survey of some employees working in real estate companies all said "they have not heard anything about Tet bonuses". Many people also said that there will be no bonus because they did not sell any products during the year, and employees are lucky if their salaries are not cut or reduced.
Many workers are also more afraid of losing their jobs than of not receiving their Tet bonus. Ms. Anh Dao (45 years old), a garment worker at N. Company Limited (Tan Thoi Hiep Industrial Park, District 12), said that over the past year there have been layoffs, most recently in August, when the company announced that hundreds of people would lose their jobs, including her. However, this plan has been postponed because there has not been an agreement between the workers and the authorities.
"Last week, the workers were also struggling to ask the company's human resources and union about whether they would support bus tickets to return home for Tet so they could book tickets. At that time, there was no answer. Recently, the board of directors announced that they would organize 3 trips (the company paid 70% of the cost, the union supported the remaining 30%) to bring more than 100 disadvantaged workers to the Central and Northern provinces, scheduled to depart on December 27 (February 6, 2024)," said Ms. Dao, adding: "Currently, we don't know what the Tet bonus will be. Last year, we were given a bonus of 1 month's salary. Of course, I'm more worried about losing my job than not receiving the Tet bonus. But seeing that workers are allowed to work overtime this month, everyone hopes to have a bonus to warm their hearts."
Unpredictable, not like last year
Ms. Nguyen Thi Thuy, Vice President of the Vietnam Textile and Garment Trade Union, said that currently, through understanding, textile and garment units are still trying to maintain production and most of them do not have plans to increase labor at the end of the year. Regarding Tet bonuses, employers have not yet made a final decision, so there is no exact information. Ms. Thuy assessed that this is different from previous years. Because in previous years, enterprises often had longer plans for welfare policies and support for workers at the end of the year, about 3-6 months before Tet. "Currently, enterprises are also trying and thinking hard because if the bonus is lower, it can lead to a labor shortage, and if it is higher, enterprises will also have a lot of difficulties," Ms. Thuy said.
Mr. Pham Xuan Hong, Chairman of the Ho Chi Minh City Textile, Embroidery and Knitting Association, also commented: "Only this year is difficult to predict. In previous years, we knew the trend in advance whether it was favorable or difficult. But this year, after observing, some said the bonus would be better, but many places said it would continue to be difficult."
Some enterprises plan to keep the Lunar New Year bonus in 2024 the same as last year. Mr. Luu Kim Hong, Chairman of the Trade Union of Nidec VN Co., Ltd., informed that the unit has not yet met to discuss the year-end welfare policy. However, he predicted that the bonus level will be the same as last year, level 1.1, for example, a salary of 10 million VND/month will receive a Tet bonus of 11 million VND. In addition, the company and the trade union also coordinate to organize activities such as year-end parties, Tet gifts, and organize buses for disadvantaged workers to return home for Tet...
Still facing many difficulties
According to the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City, the unit is planning to survey and request businesses to report on the labor situation, salaries in 2023 and the bonus plan for the New Year and Lunar New Year in 2024, subsidies and support for employees (gifts, train and bus tickets, etc.), Tet holidays, annual leave, salary and bonus payment time, etc.
The HCM City Department of Labor, Invalids and Social Affairs assessed that the general situation of the labor market is still facing many difficulties, so it is not possible to predict policies, and specific data is needed for analysis. Normally, enterprises send reports on salaries and bonuses near the New Year. The unit will closely monitor the labor situation in enterprises to work with functional agencies such as trade unions, management boards of export processing zones, high-tech zones, etc. to have timely support plans. At the same time, enterprises need to ensure full and timely payment according to plan; not to let the situation of unpaid salaries and bonuses occur.
"Tet comes to all union members"
The Ho Chi Minh City Labor Federation said that due to the impact of the world and regional economic situation, the production and business activities of enterprises in Ho Chi Minh City are still facing difficulties due to the impact of production orders, especially enterprises in the footwear and garment industries... Some enterprises have to agree to terminate contracts with employees, typically in Binh Tan District, a company has had 9,284 cases of workers losing their jobs since the beginning of the year.
From now until the end of the year, the Ho Chi Minh City Trade Union will focus on coordinating with functional agencies to inspect and supervise employers in implementing legal regulations on salary and bonus regimes during Tet; promptly grasp the thoughts and aspirations of workers for timely handling.
In particular, the Ho Chi Minh City Labor Federation recently issued a plan to take care of Tet for union members and workers in Ho Chi Minh City with the motto "Tet comes to all union members", including priority care for workers who have lost their jobs, had their working hours reduced, and had their salaries reduced...
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