The next generation for ...
FROM PAGE 15
If a company is not strong enough, workers could leave.
Another key factor is the Labour Law and welfare that needs to be amended.
All countries want to bring best benefits, but in Vietnam, the annual wage increase is a story that has caused a lot of pressures for companies like the Garco 10. Typically, the exported prices have not been increased in the last 10 years. According to our calculation, the productivity was double while salary is nearly tripled.
Secondly, with the sectors increase in productivity, the minimum wage increase together with the current high social insurance rate has been a huge pressure for our company.
Wage increases dont match productivity and companies will find it difficult to cope.
We are the industry leader with a good management system and modern machinery as well as training school for workers. But with the increasing pressures firms could suffer.
This is one of biggest pressures for us because we are paying a high wage to workers even though the minimum wage has increased by 30 per cent in the last three years.
The rise in minimum wage also makes social insurance payments higher. Currently, Garco 10 contributes 22 per cent and labourers pay to 10 per cent on salary for social insurance.
If the salary increase is not considered, it will pull back the growth of manpower. The Labour Law should be adjusted. It is necessary to carefully review the plan for annual minimum wage increase and research.
Three years ago, our contribution to the social insurance fund was VNÑ55 billion. It is now up to VNÑ100 billion.
The Labour Law which limits the extra working hours to less than 1.5 hours per day, 30 hours per month and 300 hours per year is extremely unreasonable while China and Japan controlled 800 hours per year.
Workers would have to work overtime at peak times to ensure timely delivery to customers. Therefore, we can not keep extra working time at 30 hours per month at peak time.
How will the Fourth Industrial Revolution affect the garment and textile industry?
It is essential for the survival of the textile industry. The story of clean and green plants has been a common trend in the world. Customers have not only given assessment criteria such as protection of labourers rights, working conditions and social policies for garment and textile firms but also smart factories for green development and environmental protection. Garco 10 would have special priority in receiving orders compared to other enterprises if achieving this. This is a relatively new concept even though some enterprises have applied but not many in Vieät Nam.
We are now approaching these standards and protecting workers rights. VNS