Beyond wages: How businesses benefit from strong unions

The 2-percent union membership fee in Vietnam, in place since 1957, helps unions provide financial assistance to workers in difficult situations and organize activities and benefits for workers.

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Vice Chairman Pham Chi Tam of the HCMC Labor Confederation is saying goodbye to workers' families returning to their hometowns by spring trains (Photo: SGGP)


Three years ago, when diagnosed with cancer, Nguyen Thi Kim (working at the Hat Boi Artistic House in Ho Chi Minh City) fell into a state of despair as she was the main breadwinner of the family of three children.

Receiving information about Kim's situation, the Mutual Aid Fund of the HCMC Civil Servants' Trade Union supported her with VND20 million (US$785) while the grassroots union provided another VND10 million ($393) to help her cover medical expenses. In the following years, the fund continued to accompany her. Thanks to this timely assistance of the union at all levels, Kim has been able to maintain her treatment.

A similar case is Le Ngoc Han, an officer in Kindergarten No.3 of District 5. Since she was diagnosed with thyroid cancer, she has always received the companionship and support of the school and District 5 trade union organizations for her family to have more motivation to overcome the most difficult period.

In addition to supporting union members and workers with incurable diseases, the Mutual Aid Fund Management Board also visits and gives medical expenses to cases of occupational accidents or difficult circumstances at grassroots unions. This is a meaningful program of the HCMC Civil Servants' Trade Union, which has been implemented so far.

For instance, the "Thank you to workers" program has been implemented by the District 5 Labor Union at local enterprises to care for 460 union members and workers in difficult circumstances, female workers raising young children at these enterprises.

Another meaningful program organized by the HCMC Trade Union for many years on each Lunar New Year is "The Ticket of Love", offering tickets for laborers to return to their hometown to reunite with their families. In the Lunar New Year of Dragon 2024 alone, the city's unions have aided more than 25,600 union members and workers to return home for Tet via free bus, train, and airplane tickets with a total of more than VND161 billion ($6.32 million).

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Free medical examination program for workers implemented by the HCMC Trade Union (Photo: SGGP)


At Nidec Vietnam Co. Ltd. (sited inside Saigon Hi-tech Park in Thu Duc City), every year union members and workers receive Tet gifts, attend a warm year-end party. Meanwhile, female employees obtain gifts on March 8, and workers' children are given gifts on Children's Day (June 1) and Mid-Autumn Festival, along with entertainment activities.

Chairman Luu Kim Hong of the Trade Union of this enterprise informed that on average, female workers are taken care of by the company union at a level of more than VND1 million ($39), while their male counterparts at a slightly lower level. All are taken from the 2-percent union fee source.

Likewise, in Dai Dung Metallic Manufacture Construction and Trade Corporation in Binh Chanh District, the company's union always publicizes the union report on revenue – expenditure and establishes a list of 18 contents of care for union members and workers (Tet gifts, birthday gifts, gifts on national holidays).

Union members and their children generally receive from VND1.3 million/year ($51), much more than the union fee contribution (VND45,000 ($1.8)/month/person). In cases of hardship due to illness, accidents or family events, workers are also taken care of with an amount from VND300,000 to 1.5 million/time ($12-59).

When the National Assembly was seeking public opinion on the 2-percent union membership fee, there were many online forums, groups, organizations, and individuals who took advantage of the situation to spread misinformation and even called for the establishment of independent unions.

In reality, over the years, current trade unions have always been an effective bridge between workers and employers, helping to create harmonious labor relations between the two sides.

The legalization and maintenance of the 2-percent union membership fee demonstrate the superiority of the regime through the construction and implementation of Party and State policies on trade union activities. Simultaneously, it concretizes the Politburo's policy on renewing the organization and operation of Vietnam’s trade unions in the new situation.

Many businesses believe that the 2-percent union membership fee is not a burden on businesses, as they understand that trade unions use this fund to care for workers. In fact, this is a very important resource not only to contribute to stabilizing labor relations in enterprises but also to hold emulation movements. Only when trade unions do a good job of these things will workers see the benefits of joining a trade union.

The trade unions at all levels in HCMC have implemented various programs to care for workers, including:

  • “Reunion on Tet Holiday”;
  • “Workers' Families Enjoying Tet with HCMC”;
  • “The Ticket of Love” to offer free tickets for laborers back to their hometown at Tet;
  • “Heart of Compassion” to provide financial assistance for heart surgery for workers and their children;
  • “Trade Union Shelter” to aid workers build or repair their house;
  • “Thank You, Workers”;
  • Nguyen Duc Canh Scholarship to honor outstanding academic achievements of workers' children;
  • Thanh Da Summar Camp to organize recreational activities for children of union members, workers, and civil servants.

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