Last update 6/22/2012 11:26:47 AM (GMT+7)

Trade unions to get 2% of wage funds
A majority of National Assembly (NA) deputies on Wednesday agreed to the Law on Trade Unions, which requires enterprises to set aside 2% from their wage funds to pay social insurance for workers.

The content that attracted the most attention of NA deputies on the amended Law on Trade Unions is Article 26 on union financing. There were 72.55% of deputies agreeing that 2% taken from the salary funds of agencies, organizations and enterprises will serve as a basis for social insurance payment.

Phan Trung Ly, chairman of the NA Law Committee, said the NA Standing Committee saw the need for a regulation on union funding as the regulation will assure the union’s responsibilities of protecting legitimate rights and interests of workers.

As a political and social organization, trade unions have their operating costs coming from the Government as provided in the State Budget Law. However, to meet unions’ demand of diversifying its activities, their operating costs are also guaranteed by other sources, including contributions by employers.

“This is not a tax or cost but a contribution by enterprises to assure the role of the union in establishing a good working relationship and encouraging workers to do their job well,” said Ly.

The NA Standing Committee said financial contributions by enterprises should be calculated based on the state of the nation’s economic development.

Taking the salary fund as a basis for the cost payment means that the payment is based on the popular and stable amount used to pay for workers at agencies, organizations and enterprises. In addition, the payment will assure consistency in collection of social and medical insurance and facilitate the financial management of the authorities.

Besides, the payment of enterprises is not the only source for the union as there are many sources such as the union membership fee, the State budget and other legitimate sources, according to the NA Standing Committee.