Some people say that it’s easy to lower salaries but difficult to increase them. Do you agree?

That’s not quite right. Labourers’ salaries did not decrease last year though businesses encountered many difficulties. Monthly average income increased by 15.3 per cent compared with 2007 to VND2.48 million (US$145). The increase depended on businesses. The purpose of the wage increase was to support labourers while the consumers price index climbed in the first eight months of the year. In the last four months of 2008 businesses were affected by the world financial crisis, so increasing salaries became more difficult.

Do you think it is more difficult to increase salaries now than it ever has been?

Possibly. We paid working visits to some provinces in the northern region and witnessed working hours and wage reduction at some businesses. For the majority of companies, wage reductions may be precautionary as they are unable to predict their performances for 2009.

Increasing the minimum wage does not mean that labourers’ wages in general will rise. Minimum wage is the basic level that businesses have to pay for labour. Employers are not allowed to pay lower than the fixed level. Payment which is above the level is dependent on negotiations between employers and employees.

How did employers prepare for the wage adjustment?

When the policy on minimum wage was approved by the Government last October, cities and provincial authorities announced it to businesses. As far as we know, many businesses have made plans to adjust salaries and have announced the changes to their workers.

This is an important policy and will protect workers earning low incomes, ensuring their social welfare. The workers who are paid below the minimum level are the main beneficiaries from this policy change.

Some businessmen said the country was losing its advantage of a cheap work force because of the policy. What do you say to that?

Before and after the policy was approved, some businesses said we were running contrary to world trends as many countries announced that they would not be increasing minimum wages this year. If we maintained the low wage policy, workers’ lives would be definitely be adversely affected.

In addition, the scheme to overhaul salary and social insurance policy - which has been Government approved - will synchronise minimum wages among businesses by 2012.

Source: Viet Nam News