HCMC takes heed of workers’ benefits and care

Because some enterprises in Ho Chi Minh City have difficulties in production and business, they have had to cut labor, and reduced working hours. As a result, many workers lost their jobs and their income was affected when the Lunar New Year is approaching.

For nearly a month now, 45-year-old Nguyen Thi Hong hailing from the Mekong Delta Province of Dong Thap temporarily living in HCMC’s District 1 has gone everywhere to apply for a new job, but she has not found a suitable one. Ms. Hong used to be a garment worker in a company in District 12, but due to the difficult situation, the company was dissolved in mid-November. Unable to find a professional job while her savings are about to run out, Ms. Hong had no choice but to apply for a job as a maid for a restaurant near the rental house to make ends meet.

Many workers have been falling into a difficult situation after losing their jobs in the past few days, they had to complete formality at the local social insurance agency for unemployment insurance or one-time social insurance.

Queuing in front of the Social Security Administration office in Hoc Mon district in an early morning, 38-year-old Nguyen Minh Son from Tien Giang Province in the Mekong Delta said that he has been paying social insurance premiums for nearly 8 years. During the Covid-19 outbreak last year, he lost his job and had to work part-time at a construction site. For the past two months, there was no new construction, so he continued to be unemployed. He is now broke so he decided to withdraw his social insurance once to return to his hometown saying that after Tet he would return to the southern largest city to find a new job.

According to Tran Dung Ha, Deputy Director of the Ho Chi Minh City Social Insurance, by the end of November 2022, roughly 99,615 people have been applying for one-time social insurance benefits, an increase of 460 people compared to the same period last year, but a decrease of about 14,000 people compared to 2020. Particularly in the late November and early December period, when businesses have faced difficulties and had to cut labor, workers cannot find jobs while the Lunar New Year is approaching, they, therefore, opted to enjoy a one-time social insurance regime to cover their daily expenses.

Mr. Ha fretted that workers choosing to enjoy one-time social insurance would have many consequences later such as no pension, and no health insurance. In case workers are too difficult, they can go to the social insurance agency at any district to submit a one-time social insurance benefits application, it is not necessary to submit the application in the place of residence. Currently, social insurance agencies of 22 districts, Thu Duc City and 46 post offices receive applications and settle benefits for employees.

Mr. Nguyen Van Lam, Deputy Director of Ho Chi Minh City Department of Labor, Invalids and Social Affairs, said that in the last months of 2022, a number of enterprises in the sectors of textile, garment, footwear, wood processing, have difficulty in finding export order. The number of orders from these enterprises began to decrease in the fourth quarter of 2022 and it is expected to last until the first quarter of 2023. Subsequently, many workers have been unemployed, affecting the income and life of workers.

To avoid having to lay off many employees at the same time, businesses are implementing many solutions such as reduction of working hours, and some days off of the week. In addition, the Employment Service Center of Ho Chi Minh City has actively coordinated with administrations in districts to organize job fairs to help workers find a job as well as guide employees to learn policies and procedures for receiving unemployment benefits. In 2022, the authorities settled unemployment benefits for workers amounting to more than VND28,562 billion and US$36,702.

Mr. Nguyen Van Lam added that somewhere in the city, many businesses still have a huge need to recruit workers besides businesses having difficulties cutting labor in late 2022 and early 2023. To meet the needs of businesses as well as support unemployed workers, the Department of Labor, Invalids and Social Affairs cooperated with the Ho Chi Minh City Confederation of Labor and related departments and agencies to organize job floors.

However, at the end of the year, many unemployed workers did not want to apply for full-time jobs but work seasonally and receive unemployment benefits, enjoying one-time social insurance to return to their hometowns. They will return to the southern metropolis after the Tet holiday ( the Lunar New Year).

According to Mr. Nguyen Thanh Do, Head of the Policy and Legal Affairs Department under the Ho Chi Minh City Labor Confederation, a survey of nearly 330 businesses in the city has shown that about 108,000 workers were affected when their companies suffered a reduction of orders. Amongst them, about 102,000 employees lost their working hours which means their income bracket fell and more than 6,000 lost their jobs. Moreover, the survey also showed that 40,000 workers over 35 years old and 8,000 pregnant and child-rearing workers were afflicted.

Before the wave of workers losing their jobs due to a lack of orders, many local governments coordinated with trade unions and businesses to have beneficial policies to support workers. In addition, the Department of Labor, Invalids and Social Affairs and the Labor Federation monitor and supervise salary payment and Tet bonuses at enterprises to ensure the rights of employees.

According to the plan, businesses in Ho Chi Minh City must report on salary payments in 2022 and Tet bonuses by December 25. Up to now, about 200 enterprises have reported to the Department of Labor, Invalids and Social Affairs. For example, PouYuen Vietnam Company in Binh Tan District has decided to reward its workers for the Lunar New Year 2023. The highest bonus that employees at PouYuen Vietnam Company receive will be 2.2 months' salary depending on their seniority and those who have worked for just one year are rewarded with one month's salary. Thus, workers directly producing will have a bonus of VND 6.5 million-VND26 million.

Standing Vice Chairman of the Ho Chi Minh City Confederation of Labor Tran Doan Trung said that in addition to the budget of about VND140 billion to buy gifts for workers on the occasion of the Lunar New Year 2023, the Ho Chi Minh City Confederation of Labor also directed labor unions in districts and Thu Duc city to find many solutions to support and care for disadvantaged workers. At the same time, they have been asked to make a list of employees with job loss or work time reduction. At the same time, city governments will focus on taking care of and supporting union members and employees of companies whose owners fled or those who did not receive a Tet bonus from enterprises, pregnant female workers, workers raising children under 36 months old, workers suffering from occupational accidents, incurable diseases, and serious diseases.

At the year-end meeting of the Military Party Committee of Ho Chi Minh City on December 4, Secretary of the Ho Chi Minh City Party Committee Nguyen Van Nen noted local administrations to pay attention to the living condition of families which are beneficiaries of social policies, people serving in the cause of the nation’s revolution, and the disadvantaged. In the face of some businesses cutting workforce, workers losing their jobs, Secretary of the Ho Chi Minh City Party Committee Nguyen Van Nen asked district authorities to take care of workers and temporary workers who lost their jobs.