Workers demands met

In accordance with the new prime ministerial decree No. 03/2006/ND-CP, the minimum salary of a foreign invested enterprise (FIE) worker will be VND870,000 ($55) applicable for enterprises located in the districts of Hanoi and Ho Chi Minh City; VND790,000 ($50) for workers in the suburban districts of Hanoi, Ho Chi Minh City, Haiphong, Halong city of Quang Ninh, Bien Hoa city of Dong Nai, Vung Tau city of Ba Ria-Vung, Thu Dau Mot town, Thuan An, Di An, Ben Cat and Tan Uyen districts of Binh Duong; and VND710,000 ($45) for workers in the remaining cities and provinces around the country.
The Ministry of Labour, War Invalids and Social Affairs (Molisa) estimated that the new decree would be almost be equal to a 40 per cent hike on current salary rates, which were promulgated six years ago. The current rates are $45, $40 and $35 per employee per month depending on the location of the enterprises.
The new minimum salaries will act as the base rates for FIEs pay-rolls, which are required to follow the Labour Code, according to the new decree.
The new decree also states clearly that such minimum salary rates are only applicable for those who are classified as unskilled workers or those who take manual work at FIEs. In the case of skilled workers, the lowest level of their salaries must be at least 7 per cent higher than the minimum rates.
Close to one million Vietnamese workers directly employed by FIEs will enjoy a salary rise on February 1 — two months’ earlier than Molisa’s initial plan, which picked April 1, 2006 as the starting time for the salary rise.
Molisa decided on the April 1 delay due to pressure from foreign employers, who stated that their businesses would be financially strained if the pay rise came at the same time as Tet holiday bonuses were being paid.
However, in response to the proposed delayed payment thousands of FIEs workers in the garment and textile, footwear and wood processing industries went on strike at enterprises in Binh Duong and Ho Chi Minh City demanding a higher payment before Tet.
Molisa said the PMs decision was a timely response aimed at halting the last week strikes and would bring the salaries of Vietnamese workers closer to regional rates.
In comparison, the minimum salary of a worker in Cambodia has been increased to $45 per month, in Thailand it is between $70 and $100, Beijing $63, and Shanghai $70.



No. 743/January 9-15, 2006