When will the workers' wages increase?

Through a survey of more than 3,000 workers in 6 different provinces and cities across the country, including Hai Duong, the Institute of Workers and Trade Unions (Vietnam General Confederation of Labor) announced that 24% of workers have incomes that are just enough to meet basic expenses and 75.5% of workers said that their current incomes do not meet basic daily expenses.

This also explains why in recent months in Hai Duong, many workers have had to spend time working extra hours at night, selling goods online. Many workers have to live together in small boarding houses, making it even more stuffy.

What workers want now is to increase the regional minimum wage to ensure their living standards. The first meeting on adjusting the regional minimum wage in 2024 of the National Wage Council took place in early August to meet their wishes. However, at this meeting, there were many conflicting opinions and the National Wage Council was forced to postpone the discussion of increasing the regional minimum wage until the end of this year.

Why is that? Workers' lives are difficult, if the regional minimum wage is increased, it will help them improve their lives somewhat, but in reality, increasing the regional minimum wage at this time will put businesses in a difficult position. The Covid-19 pandemic along with the negative impacts of the economic crisis have caused businesses to face difficulties. Many businesses have to scramble to keep their workers employed. If the regional minimum wage has to be increased, costs for workers, especially social insurance contributions for businesses, will increase significantly.

The disadvantages outweigh the benefits. If the minimum wage increases by a few dollars, workers will face the risk of having their businesses cut other incomes, or even losing their jobs.

How to make the increase of regional minimum wage meaningful? First of all, it must be based on the "health" of enterprises and the economy. Workers want their lives to improve through salary increases, but if salaries increase and prices "march" along, even increasing 2-3 times, it is meaningless.

The results of the review of the labor situation at more than 700 enterprises in Hai Duong in the past 6 months show that nearly 3,000 workers have had to quit their jobs; more than 1,000 workers have had their working hours reduced, have had to take turns off work or have their labor contracts suspended. This number will increase if enterprises continue to face difficulties and have to increase the minimum wage. Therefore, the important thing at this time, in order to increase income and keep jobs, is that workers must share the hardships with enterprises, overcome difficulties together to have a better life in the future, and temporarily accept a slow increase in the regional minimum wage.
No business wants workers to have low incomes and not enough to live on. Conversely, no worker wants a business to go bankrupt. The increase in regional minimum wages needs to be harmonious and appropriate. The National Wage Council can consider lowering it to 4-5% and extending the minimum wage increase to mid-2024 instead of 6% and increasing it early next year as proposed.

Increasing the regional minimum wage will only help improve workers' lives when it is done well in stabilizing market prices, synchronizing policies related to housing, spiritual life... When these issues are done well, even a low increase will still be meaningful to workers and not make it difficult for businesses.