President of VGCL: 75% of Union Funds Spent to Take Care of Workers at Grassroots Level

According to the President of the Vietnam General Confederation of Labor (VGCL), 75% of the union budget has been spent on taking care of workers at the grassroots level. The vast majority of National Assembly deputies also agreed to maintain the union budget at 2%.
October 25, 2024 | 10:17
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On the morning of October 24, at the 8th Session of the 15th National Assembly, National Assembly deputies discussed in the hall some contents of the draft Trade Union Law (amended).

2% of trade union funds should be maintained

Deputy Tran Nhat Minh (National Assembly Delegation of Nghe An province), who proposed to continue maintaining the 2% trade union fund and the regulations as in the draft law, said that the trade union fund source has been maintained and promoted effectively since 1957 - when the Trade Union Law was first promulgated. The purpose of the regulation is to take care of the lives of union members and workers at grassroots trade unions.

President of VGCL: 75% of Union Funds Spent to Take Care of Workers at Grassroots Level
Leaders of Vietnam Trade Union presented gifts and took group photos with workers of Binh Duong in the program "Trade Union Flight 2024" (Photo: T.L).

According to deputy Tran Nhat Minh, it is necessary to legalize and continue to maintain the 2% union fund as in the draft Law on Trade Unions (amended): “This fund is used at grassroots trade unions mainly to take care of the lives of union members and workers, such as sick leave, Tet gifts, birthday gifts, cultural and sports activities of union members and workers”.

According to deputy Tran Kim Yen (National Assembly Delegation of Ho Chi Minh City), ensuring the maintenance of the 2% fund also ensures the independence of the Vietnam General Confederation of Labor (VGCL) in caring for and protecting the legitimate rights and interests of union members and workers.

Deputy Le Thi Thanh Lam (National Assembly Delegation of Hau Giang province) said that in practice, the 2% source is an important basis for helping unions build a foundation that is strong enough to take good care of members and workers. Thereby, better connections in all activities can be created between the trade union and the workers.

In consensus with the above views, deputy Chu Thi Hong Thai (National Assembly Delegation of Lang Son province) said that maintaining the trade union budget is to take care of union members and workers and reduce the burden on the State budget.

Amending the law to strengthen the Vietnam Trade Union

"Representing the drafting agency, Nguyen Dinh Khang, President of the Vietnam General Confederation of Labor, addressed and acknowledged the National Assembly deputies' opinions on key issues within the amended draft Law on Trade Unions. Nguyen Dinh Khang affirmed that the Vietnam General Confederation of Labor respectfully considered and accepted the deputies' feedback, incorporating their amendments in finalizing the draft Law on Trade Unions (amended)."

President of VGCL: 75% of Union Funds Spent to Take Care of Workers at Grassroots Level
Nguyen Dinh Khang, President of the Vietnam General Confederation of Labor, delivered a speech (Photo: T.L).

The President of the Vietnam General Confederation of Labor emphasized that the amendment must ensure the thorough understanding and institutionalization of the Party's innovative viewpoints and guidelines related to national construction and development. The amendment must also be in accordance with the 2013 Constitution, ensuring the unity and uniformity of the current legal system, and ensuring the absolute and comprehensive leadership of the Party over trade union organizations.

Regarding the purpose of amending the Law on Trade Union, the President of the Vietnam General Confederation of Labor said: "The amended Law on Trade Union must ensure that the Vietnam Trade Union, a large political and social organization of the working class and laborers, grows stronger, operates effectively and attracts a large number of workers to participate."

Concurrently, the amended Law on Trade Unions should retain and build upon the provisions that have proven to be reasonable, stable, and effective in recent implementations. The amendment has taken into account and selectively integrated international experiences, ensuring alignment with the political regime, the requirements for developing a socialist-oriented market economy, and international integration under the leadership of the Communist Party of Vietnam.

Concerning trade union funds, the President of the Vietnam General Confederation of Labor noted that most delegates supported the 2% contribution level. Throughout the drafting process, the Vietnam General Confederation of Labor provided a report on the reception and explanation of relevant opinions on trade union funds. Accordingly, 75% of the 2% trade union funds will be allocated to grassroots trade unions to support union members and workers.

Nguyen Dinh Khang expressed appreciation for the business owners who have implemented higher welfare regimes, benefiting workers.

A notable aspect of the draft revised Trade Union Law is Article 30, which addresses the challenges faced by struggling businesses by incorporating provisions for exemption, reduction, and suspension of trade union fee payments.

Concerning the participation and activities of foreign workers in the Vietnam Trade Union, Nguyen Dinh Khang stated that the majority of National Assembly deputies agreed with the regulation permitting foreign workers to join and operate within the Vietnam Trade Union. This regulation aligns with the 2019 Labor Code and the trend of Vietnam's increasing international integration. The Vietnam General Confederation of Labor has also researched and proposed specific solutions detailed in Article 5 of the draft law and the Charter of the Vietnam Trade Union to mitigate any potential negative impacts.
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