Workers object to retirement age increase: NA deputies

10:06, 13/06/2019

Surveyed workers have generally opposed the Ministry of Labor, Invalids and Social Affairs' proposal to increase the retirement ages of women and men to 60 and 62, respectively, said National Assembly (NA) deputies.

 

Surveyed workers have generally opposed the Ministry of Labor, Invalids and Social Affairs’ proposal to increase the retirement ages of women and men to 60 and 62, respectively, said National Assembly (NA) deputies.

On the sidelines of an NA discussion on June 12 on amendments to the Labor Law, including a retirement age increase proposal, deputy Tran Thi Dieu Thuy, chairwoman of the HCMC Labor Federation, said that workers also disagreed with the Government’s explanation that the proposal is aimed at preventing a possible shortage of workers in the next 20 years, given the country’s aging population, the local media reported.

According to the current Labor Law, employers can propose extending employment contracts or can sign new contracts with employees who have reached retirement age but are in good health. Thus, working after the retirement age is not illegal.

Regarding the Government’s explanation that the respective retirement ages of men and women in many other countries are 60 and 62, Thuy said the Government has yet to demonstrate the similarity in jobs between local laborers and workers in these other countries.

She noted that manual workers account for a large proportion of the labor force in Vietnam. They mainly work in the textile and garment, footwear, seafood processing and mining sectors, which need young laborers in good health and with strong skills.

If the retirement age increase proposal is approved, elderly workers may find it hard to meet employers’ demands and may even become a burden for their employers, Thuy added.

At the NA discussion, deputy Pham Van Hoa from Dong Thap Province proposed the NA consider the proposal carefully due to the possible impact of the retirement age increase on jobs for the young. The retirement ages should be 58 for women and 62 for men, Hoa said, adding that this suggestion was supported by most officials and workers.

In addition, deputy Ngo Duy Hieu from Hanoi, who is also the deputy chairman of the Vietnam General Federation of Labor, pointed out that the federation has met with workers in HCMC, Bac Giang, Tay Ninh, Dong Nai and Quang Ninh and most of them opposed the increase in retirement ages.

At the discussion, deputies also voiced their objections to the ministry’s proposal to increase the annual overtime work limit in special cases from 300 to 400 hours.

Deputy Thuy said that work time reduction is a popular global trend. Since 1999, Vietnam has applied a policy that State officials work for 40 hours per week. Twenty years later, the policy remains in place, leading to unfairness in the work schedule of those working in State agencies compared with individuals working elsewhere.

The maximum work time of 48 hours per week in Vietnam is the highest level in the world. It is 35-40 hours per week in most other countries. The number of days off in Vietnam is also lower than in other countries.

Increasing the work time means workers will have less time to relax, take care of their families and take part in social activities to improve their mental health and skills.

The overtime work limit increase may even raise laborers’ expenses, such as hiring a caretaker for their children, and may pose a higher risk of accidents at work.

Moreover, if the proposal is approved, sectors in need of more labor may be more hesitant to invest in new technology and equipment and would make use of their low-cost workforce instead.

The overtime work increase goes against social progress, according to deputy Nguyen Thi Quyet Tam from HCMC.

Instead, Vietnam should issue policies to encourage workers to work less but receive a higher income, helping them stay energized to work better, said Tam.

Deputy Nguyen Thi Phuc from Binh Thuan Province shared Tam’s view, suggesting leaving unchanged the annual overtime work limit of 200 hours and 300 hours in special cases.

Deputy Truong Thi Bich Hanh, chairwoman of the Binh Duong Labor Federation, said that both employers and employees are in need of more working hours, especially in sectors that need large numbers of workers, such as apparel and footwear.

Enterprises want to raise the overtime hour cap to meet large seasonal orders from customers, while workers want more work to increase their incomes.

However, she proposed reducing the maximum working time per week to 44 hours from the current 48 hours. Further, the overtime pay must be hiked in a consistent manner.

(Source:SGT)