The trade union speaks out about keeping the 2% contribution rate for the trade union fund and publicizing this source

Maintain funding to better care for workers

On the morning of October 8, at the press conference held in Thai Nguyen, the Vietnam General Confederation of Labor provided some new information related to the draft Law on Trade Unions (amended).

At the conference, Mr. Ngo Duy Hieu - Vice President of the Vietnam General Confederation of Labor said that the parliament has basically reviewed and agreed with the 2% union fee payment level, although some businesses have expressed their opinions on reducing it, but they still find this level to be within the province of the enterprise. On the other hand, this contribution rate is necessary to ensure the care of workers' lives.

Previously, citing the draft law, the Trade Union Organization said that this unit proposed to Inherit and keep the same the paying subject and the contribution rate of 2% of the trade union fund according to current regulations at Point b, Clause 1, Article 29. This is a contribution level that has been applied since.12. to ensure financial resources for trade union organizations in caring for and protecting workers' rights and building harmonious, stable and progressive labor relations.

This unit said that this union fund is mainly used to take care of workers because the money is concentrated on grassroots unions (accounting for nearly 75%) to better care for workers' welfare. Of which, spending on welfare, representation, care, and training to improve qualifications and skills for union members and workers accounts for more than 84% of the total expenditure.

In essence, the 2% funding revenue is a contribution of the employer to the organization and operation of the trade union to ensure that the trade union fulfills its responsibility to care for workers, while also ensuring the role of the trade union in building harmonious, stable and progressive labor relations. Thus, the use of union funds will benefit both employees and employers, promoting the building of harmonious, stable and progressive labor relations in enterprises.

With an average salary as the basis for social insurance contributions of about 5.7 million VND/month, in a year, the enterprise contributes about 1.4 million VND to the trade union fund. Most of this amount (about 1 million VND) was used directly at the grassroots union.

According to the General Confederation of Labor, the 2% contribution rate is still within the accepted scope for the endurance of organizations and enterprises.

Keeping this contribution rate unchanged has created many controversial opinions in recent times. The Vietnam General Confederation of Labor affirmed that the 2% rate is in line with reality and contributes to ensuring stable welfare for workers.

Many new contents in the Draft Law on Trade Unions (amended)

In addition, the draft also adds regulations on exemption, reduction and suspension of trade union fee payment in cases of dissolved enterprises, bankruptcies, or economic difficulties. These regulations aim to reduce the burden on businesses during difficult times, but still ensure the support of trade unions in caring for workers. This is especially important in the context of many fluctuations in the global economy, businesses sometimes have to temporarily suspend operations or adjust the scale of production and business.

In addition to the content on trade union finance, the Draft Law on Trade Unions (amended) also mentioned issues of the use of trade union finance. The draft revised Trade Union Law has added new regulations on inspection, examination, and union audits to strengthen supervision by competent authorities, ensuring the use of trade union funds is implemented in a transparent and effective manner.

In particular, Article 34 adds a completely new regulation on the disclosure of trade union finances, ensuring that all activities related to finance are periodically inspected and disclosed, helping to increase the trust of union members and workers in the trade union organization.

Regarding this issue, Mr. Ngo Duy Hieu also said that every 2 years, the Trade Union must report to the National Assembly on the disclosure of trade union finances.

Mr. Hieu affirmed: In the context of extensive international integration, the draft revised Trade Union Law is considered necessary to meet the requirements of the new situation. Not only ensuring the rights of Vietnamese workers, but also contributing to helping Vietnam Trade Unions develop strongly in an international competitive environment, in the context of organizations representing workers not in the Vietnam Trade Union system also appearing in decline.

This draft law is expected to be considered and approved by the National Assembly at the 8th session, taking place in October and November 2024.