Interviews
Textile workers likely to witness salary hike
03 May '10
2 min read
An agreement in principle has been signed a couple of days ago between textile associations and trade unions. Workers of the textile industry are expected to receive increased salaries following this agreement.
The agreement consisting of 14 principles, which will be applicable to all companies, ensures salary regulations, extra pay, ways to settle labour disputes and norms for business culture. This has been signed after conducting a two-year survey of textile companies.
As per these regulations, the companies has to pay salaries and other payments 15 to 30 percent higher than the rates stated in the country's labour laws, said a union leader, Truong Van Cam.
He further said that, this regulation will lessen the difference between the salaries of managers and workers, as the people at higher positions earn thousands of dollars and those at lower levels receive an average of VND 1 million (i.e US $52) a month.
As per the cost of living at places where businesses are situated, four salary rates are currently prevailing in the country such as, VND 1.2 million, 1.4 million, 1.6 million and 1.7 million. There should not be a salary chart of more than 15 different salary levels in a particular company, but, according to Cam, a lot of companies were having 30 to 40 different salary levels.
Under the new agreement, companies have to adjust the salary levels of a worker after every one to two years, instead of the earlier period of two to three years.
In addition, Cam informed that, the new agreement will be modified at an interval of six months. About 50 percent of the textile industry workers or 90,266 workers working in 69 companies out of a total of 130 companies have accepted the new regulations.
According to the General Director of Hung Yen Garment Joint-Stock Co., Nguyen Xuan Duong, companies must pay higher salaries if they want to keep going with their competitiveness. Hung Yen Garment Joint-Stock Co. employs 10,000 workers.
The agreement consisting of 14 principles, which will be applicable to all companies, ensures salary regulations, extra pay, ways to settle labour disputes and norms for business culture. This has been signed after conducting a two-year survey of textile companies.
As per these regulations, the companies has to pay salaries and other payments 15 to 30 percent higher than the rates stated in the country's labour laws, said a union leader, Truong Van Cam.
He further said that, this regulation will lessen the difference between the salaries of managers and workers, as the people at higher positions earn thousands of dollars and those at lower levels receive an average of VND 1 million (i.e US $52) a month.
As per the cost of living at places where businesses are situated, four salary rates are currently prevailing in the country such as, VND 1.2 million, 1.4 million, 1.6 million and 1.7 million. There should not be a salary chart of more than 15 different salary levels in a particular company, but, according to Cam, a lot of companies were having 30 to 40 different salary levels.
Under the new agreement, companies have to adjust the salary levels of a worker after every one to two years, instead of the earlier period of two to three years.
In addition, Cam informed that, the new agreement will be modified at an interval of six months. About 50 percent of the textile industry workers or 90,266 workers working in 69 companies out of a total of 130 companies have accepted the new regulations.
According to the General Director of Hung Yen Garment Joint-Stock Co., Nguyen Xuan Duong, companies must pay higher salaries if they want to keep going with their competitiveness. Hung Yen Garment Joint-Stock Co. employs 10,000 workers.
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