Whether to join the trade or not: “Be suffering, never be loss”

Pursuant to the Law on trade union 2012, take effective from 1 Jan 2013 and  Decision 170/QD-TLD dated 9 Jan 2013 of Viet Nam Labor Union on collection, use and management of trade union funds,

 From 1st Jan 2013, an organization, even if the grass roots trade union has been established or not, the employer has to pay the trade union fund periodically (equal to 2% of the salary fund which is taken as basis for the payment of social insurance premium for staffs) to directly superior level trade union. The directly superior level trade union shall refund 65% of such amount to grass roots trade union for its activities just only when it is established.

 Therefore, if employees do not agree to join trade union, they never received above mentioned amount refunded from the directly superior level trade union to the grass roots trade union (equal to 65% of amount of trade union fund paid by employer to the directly superior trade union).

            Whether to join the trade union or not

 As previous trade union law, if employees didn’t agree to join trade union, they and their employer would do not pay anything, then of course almost of employees did not agree to join trade union. However, with new applicable law on trade union, if employees don’t agree to join trade union, it means that they may be loss of 1.3% (0.65% x2%) paid by their employer to the directly superior trade union, which they would had received (of course, the directly superior level trade union never use of this fund and just keep it until the grass roots trade union established).  This regulation forces them to consider whether to join the trade union or not.

 If employees agree to join trade union, they shall pay membership fees monthly, equivalent to 1% of their basic salary (maximum amount is VND 105,000). Their grass roots trade union may use 60% of this amount for its activities, the remained amount 40% shall be paid to the directly superior level trade union. This means that they will be suffering of 0.4% (equal to 40% x 1%).

 The suffering amount is always smaller than the loss amount. That is true in accodance with provisions of law on trade union, “Be suffering, never be loss”.

 If employees agree to join trade union, they will be suffering, but never be loss. They will pay 1% member fee, be suffering of 0.4%, but they will receive a refunded amount higher than their paid amount from directly superior trade union (1.3%). Moreover, employee may enjoy other benefits from establishment of labor union such as the laborer rights are assured and protected, participate in the sport movements, social activities etc to raise the laborer spirits, learning from trade unions movements etc.

 Condition for establishment of grass roots trade union is simple just only a legal entity which has at least five members who agree to join trade union.
                                                                                                                                                                                                                                                              Lawyervn.net