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Article

2 Mar 2022

Author:
Le Tuyet, VnExpress

Vietnam: Factory workers forced to work overtime to make ends meet in COVID-19 aftermath

"Workers struggle to make ends meet in the aftermath of Covid", 2 March 2022

Meager wages that have not been raised for years and soaring healthcare expenses amid the pandemic mean many workers are struggling to achieve basic living standards.

My Hieu, 30, a worker at a Ho Chi Minh City factory, burst into tears when she heard overtime was being cut...

They make ends meet by working overtime and not getting sick. Without overtime pay, their income falls to VND10 million.

"Our basic salary has not increased for two years," Hieu said. During the fourth wave of Covid-19, their factory cut overtime, leaving the couple in tears...

...Dr Do Quynh Chi, head of the Research Center for Employment Relations (ERC), said in 2020 a minimum salary of VND7.5 million was required for workers in HCMC to achieve reasonable living standards for themselves and their families.

But most workers only get paid 7-10 percent higher than the minimum wage for working eight-hour shifts (minimum salary in cities is VND4.42 million), which is not adequate, another ERC survey showed.

To make ends meet, workers have to work overtime. But this is hardly a satisfactory arrangement since, then, they have to pay for others to take care of their children and the overwork affects their health, costing them medical expenses.

A recent survey by the HCMC Confederation of Labor found that the average wage of women working in the textile and garment industry is VND6.8 million a month, but 20 percent of them earn less than VND5 million.

Forty two percent said they struggle to maintain reasonable living standards on their current incomes, and so do not save much money.

Workers also frequently borrow from friends and families, even loan sharks, to make ends meet.

"The delay in adjusting minimum wages is hurting workers," head of the Institute of Workers and Trade Union (IWTU) Vu Minh Tien said, adding that they are the backbone of the economy but do not get a fair deal for their contribution.

An IWTU survey showed that most workers have to work two to four hours overtime daily to earn enough for living. Without that, they have to resort to side jobs to supplement their income.