Business wants to double overtime
The government is proposing to increase the overtime ceiling from 40 to 72 hours per month, a limit of 300 hours a year, but many businesses want to increase 400-500 hours, adjusted annually.
The addition of overtime hours is a temporary solution to help businesses recover post-Covid-19 production which is expected to last until the end of December 31, 2022. The drafting agency is the Ministry of Manpower, Persons with Disabilities and Social Affairs, which proposes to increase the overtime work limit from 40 hours to 72 hours per month (1.8 times higher) but limiting 300 hours per year, applies to all jobs. certain job restrictions.
However, Mr Bach Thang Long, Deputy Director of Garment 10 Corporation, proposed increasing it to 60 hours per month, up to 400 hours per year because “90% of employees want to work overtime”. The company currently has more than 13,000 employees working in multiple factories in multiple locations, and can use up to 300 hours of overtime per year.
Pak Long explained, after Labor Day became massively F0, F1 caused a serious human resource crisis. The F0 rate at factories in Thai Binh is around 70%, Hanoi 30% and the company-wide average is around 40-45%. On average, each employee takes 10-14 days of leave for treatment, which equates to 80 to 112 hours of job loss.
Therefore, factories have to work overtime and risk workers to make urgent orders. It is hoped that by the end of March, the factory will be able to stabilize when workers in turn recover from illness. The garment industry-specific, excluding the impact of the epidemic, also has peak times when they have to work continuously, such as the second half of the year or New Year’s Eve.
The company leader calculated that the average worker’s income was 8.5 million VND per month and increased to around 10 million if overtime, which is an “acceptable level”. The productivity of workers when working overtime is also not as usual, business actors will support extra meals and snacks to ensure health.
“No one wants to work overtime and not all industries can work overtime throughout the year, but it is necessary to apply short-term seasonal time,” he said.
The head of Goertek Corporation, a company specializing in the production of electronic components in the Que Vo (Bac Ninh) industrial area, also uses up to 300 hours of overtime per year and wants to increase the ceiling to 500 hours.
According to Mr Zhang Jian Hua, deputy general director of the company, workers work 8 hours and overtime 1-2 hours a day when there are few orders. On the other hand, urgent order time to increase overtime is not enough. Overtime in the month that has not been exhausted cannot be flexibly adjusted to the following month.
The factory has 32,000 working employees, mostly young workers. Employers say that if they do not work overtime, it is difficult to recruit or recruit workers, but workers do not last long. With today’s costs of living and accommodation, it’s easy for workers to “jump” into companies to work more and earn more.
“They want to work overtime to increase their income and make ends meet,” Zhang said of the workers’ needs.
Although he did not survey workers, Mr. Nguyen Van Nguyen, deputy director of a Catalan company specializing in exporting tiles, located in the Yen Phong (Bac Ninh) industrial zone, confirmed that workers basically agreed to work overtime. He proposes to extend overtime from year to year in order to be flexible to adjust according to order, adapt to the pandemic and increase to around 300-400 hours per year.
Catalan companies have more than 800 employees and apply a maximum of 200 hours of overtime per year. After Tet, about 15% of workers are F0, there is a queue of three with 1-2 workers remaining, the workload increases and according to Mr. Nguyen, workers agree to work overtime to shoulder work instead of those who have to take time off, treat Covid-19 . The line is invested with modern machinery, labor accounts for a small part, the machine is light enough, thus increasing the working hours of 1-2 hours per day “shouldn’t affect workers too much”.
The company leadership calculated that the average salary of employees in 2020 is 10.5 million dong, increasing to 10.9 million in 2021. If working overtime is maximum, the total employee income increases to about 11.3-11.4 million VND and company salary fund increased by 5-7%, completed many urgent orders to Europe.
“No applications have been canceled yet, but the company has had to turn down many opportunities during the F0 workforce,” said Mr. Nguyen.
Disagree with increasing 72 hours per month, Mr. Le Dinh Quang, deputy head of the Policy and Law Department, General Confederation of Labor Vietnam, said the governing body should limit it to less than 60 hours, excluding some groups. Teenage workers, pregnant women, child-rearing, people doing heavy and dangerous work are not applicable in all industries.
He recalled that working hours and overtime were carefully discussed by the National Assembly before passing the revised Labor Code. At that time the business world wanted to increase overtime hours to 300-400 hours per year, but the National Assembly considered many factors, finally deciding on a maximum of 200 hours and only agreed to increase working hours to 300 hours for some industries. The new rules for increasing overtime hours will also take effect from early 2021.
“It can’t be said that workers want to add overtime, but they have to work to earn an income to cover their living,” Quang said, and analyzed that if the income is enough to live on, employees only want to work 8 hours a day. ., even shorten the working time to return to the family and children, but no one wants to work overtime.
He also emphasized that the addition of overtime hours was only a temporary solution to help business actors restore production, implemented in a short time, until the end of 2022 or until the outbreak was under control. In the long term, the management agency needs to have a sustainable policy to increase labor productivity, but cannot establish an increase in overtime.
On March 10, when considering the draft, the Standing Committee of the Committee on Social Affairs assessed the adoption of a 300-hour ceiling for all occupations and occupations. too wide. The Ministry of Manpower, Persons with Disabilities and Social Affairs has not provided sufficient scientific basis, practice and international experience on increasing overtime. The agency proposes the Ministry to review the professions that if the increase in working hours will affect the health of workers, set a direction to exclude groups that do not apply this ceiling.
It is hoped that at the 9th session on March 24, the Standing Committee of the DPR will consider and approve the draft resolution on increasing overtime hours for employees, based on the Government’s proposal.
According to the 2019 Labor Code, effective from early 2021, overtime hours are limited to 40 hours per month, not more than 200 hours per year. When an employer arranges for overtime work, the employee’s approval must be obtained, ensuring that the overtime hours do not exceed 50% of the normal working hours of the day. If normal working hours are applied every week, the total working time and overtime work must not exceed 12 hours per day and 40 hours per month.
The law only expands the overtime framework to a maximum of 300 hours per year for a number of industries, such as: Manufacture and export of textiles and garments, leather and footwear, agro-forestry-fishery processing, electricity production and supply, telecommunications. , oil refining, water supply and drainage, salt industry, electricity, electronics.
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