Four Highlights in the Law on Trade Unions (amended)

I - All agencies, organizations, and enterprises are obligated to contribute union funds at a rate of 2% of the salary fund used as the basis for social insurance contributions, regardless of whether they have established a grassroots union.

The National Assembly recognizes that regulations regarding union finances are essential to ensure that unions can effectively perform their functions and duties, inheriting the provisions of current laws on this matter.

The union funds are intended to ensure the activities of the union—a representative organization for workers employed at enterprises—to care for and protect the legitimate rights and interests of workers. Additionally, it helps to secure the union's role in building harmonious and progressive labor relations, educating and motivating workers to perform their jobs well, contributing to the stability of businesses, producing more products, and ensuring that enterprises can operate normally and develop.

This contribution has been effectively implemented since 1957. The stipulated contribution rate does not compel workers to join the union, thus not violating the principle of voluntariness. Therefore, the union fund collection should apply to all agencies, organizations, and enterprises, irrespective of whether they have a grassroots union organization.

The Standing Committee of the National Assembly recommended that the National Assembly maintain the basis for calculating the union fund contribution as the salary fund used for social insurance contributions for workers. For workers who are not subject to social insurance contributions, the salary fund paid to them is not considered the basis for union fund contributions. Consequently, the National Assembly voted to approve Article 26 of the revised Law on Trade Unions, which regulates union finances as follows:

"Article 26. Union Finances

Union finances comprise the following revenue sources:

1. Union dues paid by union members as stipulated by the Charter of the Vietnam General Confederation of Labor;

2. Union funds contributed by agencies, organizations, and enterprises at a rate of 2% of the salary fund used for social insurance contributions for workers;

3. State budget allocations;

4. Other revenues from union cultural, sports, and economic activities; from projects assigned by the State; from domestic and foreign organizations and individuals' aid and sponsorship."

II. Not allowing foreign workers to join the Vietnam General Confederation of Labor:

One of the important issues voted on by the National Assembly is the right of foreign workers to join and participate in union activities (Clause 2, Article 5 of the draft revised Law on Trade Unions). The Standing Committee of the National Assembly presented two options: Option 1: Do not stipulate the right of foreign workers to join and participate in the Vietnam union. Option 2: Foreign workers working at public service providers and enterprises established and operating within Vietnamese territory with grassroots union organizations, who hold a valid work permit issued by competent state authorities and have a labor contract valid for 6 months or more, may join and participate in the union.

The National Assembly voted to approve Option 1: “Do not stipulate the right of foreign workers to join and participate in the Vietnam union” with 371 out of 469 votes in favor (accounting for 93.99%). With this result, the revised Law on Trade Unions does not permit foreign workers to join the Vietnam General Confederation of Labor.

With the new legal "stick," the union will certainly better protect workers' rights

III. Additional mechanisms to protect union officials:

Regarding the guarantee for union officials' activities, the Standing Committee of the National Assembly considers that part-time union officials are required to fulfill their responsibilities to the employer as per their labor contract commitments and also have the responsibility to represent and protect workers' rights and interests as union officials. In relationships with employers, union officials are often at a disadvantage.

Therefore, the Trade Union Law needs special mechanisms to attract workers to participate in unions and union activities and better protect the legitimate rights and interests of part-time union officials in their relationships with employers. To ensure consistency with the revised Labor Code, the National Assembly approved the revised Law on Trade Unions, including Clause 1 of Article 25, which states: “In cases where the labor contract or working contract expires while the worker is a part-time union official in their term, the labor contract or working contract shall be extended until the end of their term.”

IV. No change in the name of the Vietnam General Confederation of Labor to Vietnam General Union:

Regarding the organizational system and the name of the unions at different levels (Article 7 of the draft revised Law on Trade Unions), there are opinions in favor of changing the name of the Vietnam General Confederation of Labor to "Vietnam General Union"; however, there are opinions suggesting to consider carefully the change of name to "Vietnam General Union", as it is not appropriate with Article 111 of the Constitution and the right of the Congress and Union Charter to decide their name.

The Standing Committee of the National Assembly finds that during the process of receiving and revising the draft Law on Trade Unions, many opinions suggested changing the name of the union to address inconsistencies in the names of union levels as currently. However, the name of the union is decided by the National Congress of Unions and recorded in the Union Charter.

Moreover, specifying the name of the union organization in the Law on Trade Unions is also directly related to some provisions in the Constitution and other legal documents. Therefore, the Standing Committee of the National Assembly proposed that the National Assembly retains the name “Vietnam General Confederation of Labor” in the law, which the National Assembly approved.

Source: Hoang Quang - Labor Online

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