Textiles, footwear, electronics and optical product manufacturing were among the industries affected by the shortage of orders this year. — VNA/VNS Photo Hồng Đạt

HÀ NỘI — With only two months left until the Lunar New Year, companies are putting more focus on workers’ benefits to ensure a fulfilling Tết holiday for their staff, especially in the current challenging economy.

Changshin Vietnam Co Ltd, a footwear business in the southern Đồng Nai Province, announced its Tết bonus plan a month earlier than the previous year.

K.B.T., an employee at Changshin Vietnam said: “It has been a difficult year economically, so we’re very touched and assured to see the company announce the Tết bonus plan early for us with the same stable range as last year.”

According to him, staff with 20 years of experience in the company receive a bonus of 200 per cent of their base salary and commission.

The bonus for those who worked in the company from 3 to 20 years is between 25 and 195 per cent of their base salary and commission, depending on their years of experience. New recruits who start in January 2024 each have a bonus of VNĐ500,000 (US$20).

Đặng Tuấn Tú, trade union chairman of Changshin Vietnam Co Ltd, said that although the business had received fewer orders than in the previous year, workers’ welfare was still ensured, with Tết bonuses expected to be paid to employees’ bank accounts by January 26, 2024.

The company’s trade union had seven meetings with the board of directors to maintain the bonus in the same range as last year.

The trade unions of other businesses, such as Pouyuen Vietnam Co Ltd in HCM City, are also negotiating to ensure Tết bonuses for workers.

According to Vũ Thế Vân, trade union chairwoman of HCM City Export Processing and Industrial Zones Authority (HEPZA), businesses have been in a bleak situation this year with fewer orders and reduced working hours.

Therefore, the optimal bonus amount the trade union was expecting was an average one-month salary for workers, Vân said.

HEPZA trade union also plans to support companies in extremely difficult situations through different means such as giving out transport tickets, discount vouchers, or cash or in-kind gifts for their employees.

HCM City Department of Labour, Invalids and Social Affairs will also spend VNĐ71 billion ($2.92 million) for around 139,000 people affected by layoffs or in a disadvantaged situation, alongside the support from the city’s Fatherland Front Committee.

Since the beginning of 2023, the labour market had been affected by the shortage of orders, especially in the industries of textile, footwear, electronics and optical product manufacturing, said the Hà Nội Federation of Labour, adding that the situation had been improving since September but the recovery was not entirely sustainable.

Việt Nam General Federation of Labour had required that trade unions of all levels be proactive in working with businesses to approve and announce plans for salary and bonus payment to workers at least 20 days before the Tết holiday.

Timely support

Inspections will be carried out by the labour, invalids and social affairs departments of 24 districts and Thủ Đức City in HCM City, alongside two management boards of industrial parks and export processing zones.

They will survey the plans for Tết bonus and salary payments at approximately 300 businesses.

HCM City Department of Labour, Invalids and Social Affairs also requested companies to make full and timely payments to workers for the New Year and Tết holidays, avoiding delays that may lead to disputes at the workplace.

In case the business has difficulty paying wages and bonuses, it must work with its workforce representative and the local labour management agency to devise alternative plans to support workers.

Việt Nam General Confederation of Labour vice chairman Ngọ Duy Hiểu said that some businesses had been seeing lower demands or were less resilient due to the prolonged effects of the pandemic.

While the Tết bonus is not mandatory according to the Labour Code, it goes beyond financial support and acts as an effective instrument to boost workers’ spirit, productivity and retention rate.

The general federation also recommends that businesses announce their Tết bonus plans no later than January 19, 2024.

In addition to surveys and reports on bonus and salary payments as well as labour relations at the local level, the Ministry of Labour, Invalids and Social Affairs (MoLISA) will monitor the decrease in orders and employment across various sectors.

The MoLISA also ordered the Department of Employment and local employment service centres to connect job seekers to suitable opportunities, implement unemployment insurance policies and provide consultancy and training support for workers. — VNS