Ho Chi Minh City's trade union revenue reaches 3,605 billion VND in 2022, continuing to exceed target

On June 6, the Ho Chi Minh City Labor Federation (HCMC Labor Federation) announced that it had recently reported a 2-year summary of the city's labor union resources development for the 2020-2025 period under Program 07. Accordingly, despite facing many difficulties due to the impact of the Covid-19 pandemic and fluctuations in the world economy, the union's financial revenue for the 2020-2022 period still met and exceeded the assigned targets.

Specifically, with the target of "collecting union finances reaching 90% of the amount of union funds and fees that must be collected according to the regulations of the State and the Vietnam General Confederation of Labor", in 2022, the Ho Chi Minh City Labor Federation collected 3,605 billion VND. Of which, the revenue was 2,938 billion VND (reaching 149% of the target of 1,971 billion VND) and the union fees were 667 billion VND (reaching 126.8% of the target of 526 billion VND).

Ho Chi Minh City Labor Culture Palace - a public service unit under the Ho Chi Minh City Labor Federation

This is the third consecutive year that the Ho Chi Minh City Confederation of Labor has exceeded this target. Previously, in 2021, the union's financial revenue reached VND 2,948 billion (collecting VND 2,408 billion in expenses, reaching 134% of the plan and collecting VND 540 billion in union fees, reaching 135% of the plan). In 2020, the union's financial revenue reached VND 3,060 billion (collecting VND 2,468 billion in expenses, reaching 157% of the plan and collecting VND 592 billion in union fees, reaching 159% of the plan).

Representative of the legal rights and interests of union members and workers has not yet achieved

The Ho Chi Minh City Confederation of Labor also exceeded the target of "supporting 200,000 workers to access loans from the CEP Microfinance Organization". At the same time, it achieved the target of "direct care for union members and workers accounting for 55-60% of the total annual expenditure of the trade union system at all levels". For example, in 2022, the expenditure was VND 1,877 billion compared to the total system expenditure (ie the revenue retained annually after paying obligations to the Vietnam General Confederation of Labor) of VND 2,744 billion, reaching 68.4%.

Also according to Program 07, the Ho Chi Minh City Labor Federation strives to achieve a ratio of 10-15% in representing legal rights and interests by 2025. However, according to the report, the results of implementing this target in the past 3 years have not been achieved.

Specifically, in 2020, the Ho Chi Minh City Trade Union only spent 27.6 billion VND compared to the total system expenditure of 2,007 billion VND (accounting for 1.3%). In 2021, it spent 41.17/2,493 billion VND (accounting for 1.66%) and the expenditure for this indicator in 2022 was 78.5/2,744 billion VND (accounting for 2.86%).

The Ho Chi Minh City Labor Federation has met its spending target for direct care of union members and workers, but has not met its spending target for representing workers' legal rights and interests.

Annual expenditure is still not commensurate with the revenue generated during the year.

Ho Chi Minh City Labor Federation assessed that besides many achievements, the situation of loss of revenue and union fees still exists, especially union fees collected in the non-state sector.

Annual expenditures are still not commensurate with the revenue generated during the year, especially the expenditure ratio representing the rights and legitimate interests of employees has not met the requirements. In addition, the operation of public service units still faces many difficulties, the rate of financially autonomous units has decreased compared to the period 2017 - 2019.

In the period of 2020 - 2022, the Ho Chi Minh City Labor Federation only prepared to invest in 3 projects including the swimming pool and gym of the Labor Culture Palace, Core Banking of the CEP Microfinance Organization. The remaining 16 projects in the medium-term public investment plan for the period of 2021 - 2025 have not yet been implemented. The reason is that the Ho Chi Minh City Labor Federation has not been given the right to proactively implement, instead it must wait for approval from competent authorities in the implementation steps.

Resolutely deal with units that are late in paying union fees

In the past 2 years, Ho Chi Minh City's trade unions at all levels have had many drastic solutions in coordinating inspections, penalties, and lawsuits against units that owe or delay in paying union fees.

Specifically, 32,284 financial inspections of trade unions at the same and lower levels were conducted. Through inspection and supervision, it was proposed to collect more than 75 billion VND in trade union funds; and nearly 4 billion VND in trade union dues.

Economic difficulties, credit growth in Ho Chi Minh City is slow

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