14 associations call for help for workers and businesses

Both businesses and workers suffer from the COVID-19 pandemic

14 associations applied for an exemption from paying union dues, which is 2 per cent of the salary fund from August to the end of 2021, applicable to businesses and employees located in areas implementing social distancing.

Besides, they also requested the VGCL to continue waiving trade union fees for businesses where 15 per cent of employees had to temporarily leave their jobs until June 30, 2022.

In addition, the associations proposed the VGCL to support meals for employees earning VND1 million ($43.50) or less a month.

They also proposed allowing businesses to coordinate with their trade unions to use accumulated union funds to pay for COVID-19 testing for employees and support disadvantaged workers.

According to these associations, only about 15-20 per cent of enterprises can operate under models issued by the government, others had to stop production. While many of these businesses have no revenue, they still have to pay large fixed costs such as renting warehouses and factories, inventory cost, bank interest, and salaries for employees.

According to preliminary calculations, a medium-sized seafood company loses an average VND10 billion ($434,780) a month when stopping production. Meanwhile, a medium-sized textile and garment enterprise has to pay VND10 billion for their 4,000 workers in the first 14 days alone since suspending operations.

“Most of our industries are labour-intensive, with high labour costs such as wages, social insurance, and union fees. Now we have to either stop production or produce at a reduced capacity, with output reduced by up to 70 per cent. However, the costs related to employees remain unchanged and enterprises still have to pay wages to employees who temporarily stop working, compounding difficulties over time,” a representative of the 14 associations said.