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Because of cheap wages

The no missing work but so cheap wages not enough to live that businesses recruited 10 usually get only one! - In pictures: workers find a job in the Career Center, vocational training and job placement Youth HCMC - Photo: Mai Vinh.

 

Many businesses (companies) in the export processing zones - industrial parks (IPs and EPZs) do not success in recruiting employees. But according to statistics from the Ministry of Labor, War Invalids and Social Affairs, the number of registered unemployed workers in the first six months of 2011 more than 146,500 people (three times higher than the same period last year).

So labor is going where and solutions for attracting workers to work in the business? Tuoitre news had an interview with Mr. Nguyen Tan Dinh, deputy head of the Management Board of HCMC IPs and EPZs about this situation and the solution to the current situation.

He said: "After investing a time, production is getting stabilize, companies begin to expand production and hire more workers, especially enterprises in labor-intensive sectors such as garments, leather shoes, seafood processing. This is the regions are "thirsty" workers the most. During the next five years, enterprises in IPs and EPZs need to recruit 100,000 workers so the labor shortage is predicted increasingly severe".

Lack of labor for not enough wages for living

* How is this situation changing, sir?

- Manufacturing enterprises in the field of labor-intensive are labor shortage the most. Previously, recruiting 100, there are 1,000 people lined up for recruitment, now recruiting 1,000, there are not enough 100 people registered. Previously, many labor hire only qualified high school graduation then gradually lowered grade 10, grade 9, even lower grade 9. Some labor officials in the province said many workers only signed his name to paycheck, not literacy. Many companies proclaim recruitment of ordinary level but in reality all are recruited, regardless of the level.

* May be due to low wages, overtime, unstable living conditions so workers leave work back home or find another job cause labor shortages, is it right?

- Not really true. In the industrial zones in the provinces and rural areas also lack of labor, here is the lack of the whole country. In fact, the number of other province workers in Ho Chi Minh City Province returned to his country to work not so much, according to statistics, over 90% workers of IPs and EPZs in Ho Chi Minh City back to work after the last Tet holiday.

Accurate to say that workers belittle companies, not labor shortage. The main reason of this situation in part because businesses do not have adequate policies to retain workers, a part that workers have more job choices. Another current situation is that many companies do not raise the minimum wage, no wage increase for workers durations, so not encourage workers to stick with the company, make them go away. If a living wage, workers are always ready.

* In the first six months of this year, 30,000 workers of Ips and EPZs in HCM City quit work. Enterprises are “thirsty” but the number of unemployed and quit workers rises, why sir?

- Workers tend to work this company few years, after that quit to get an unemployment allowance, and then jump over other companies. Due to the general lack of labor, so they are easily employed immediately. So the current unemployment numbers are just "virtual" numbers.

The solution to "Mr. miserly"

* Have he ever talked to business leaders about how to retain workers?

- A leader of a business complained that the productivity of the workers were only 50%, while waste products (poor quality products) in the production of up to 15-18%,so the wage could not be increased. After finding out about this company, I said that he paid for the workers here is only as 1/6 of workers in other countries, but yield to 50% is very high . The second is the ration of the workers only 8,000 VND, minus the cost of the supplier about 5,000 VND co-ingested of workers, how they can stand to work. So workers usually quit job. Therefore enterprises must recruit new workers, so waste products will be increased.

* In your opinion, what is the solution to overcome labor shortages in IPs and EPZs now?

"No where that wage for workers is as low as in our country. Businesses invest in IPs and EPZs take advantage of cheap labor for profit, but such cheap wages, workers can not stick long time. And so the vicious circle. "

Mr. Nguyen Tan Dinh (deputy head of the Management Board of IPs and EPZs City)


- First, the government must adjust the minimum wage to ensure life for workers, do not let companies take advantage of the low minimum wage to wage price paid. If this can not be changed, the labor shortage will be continued. On the other hand, annual salary increases based on the consumer price index (CPI) as the current is not suitable because the CPI is the numbers of thousands of items, while the daily necessities that workers use are only a few items increased quite high, especially food. Get the general growth of cement, gold, iron and steel combined then the proposed salary increase for workers is not reasonable.

Second, local governments have IZ EPZ need stable life for workers by keeping prices stable, worry about housing, kindergarten for their children, to deliver price stability goods to them...

* But on the business side, they also need to see their responsibility, sir?

- Of course. The status that workers move from this place to another only for higher income 100,000-200,000 VND or be arranged accommodation is very popular. Labor instability is not good for workers and enterprises.

I know there is a business while price rises were not considering setting profit targets, dividend focused mission to care for the employee. Because they know if workers discarded after the crisis, will not be enough workers to develop production. The result is in economic crisis year, that company still has great interests due to the workers do all best to help them overcome difficulties. This suggests that companies need to actively make adequate wage policies for psychological stability employees and stick with them. When the strike happened, workers requirements increase additional 500,000-700,000 wages, though companies have accepted, the relationship of the two sides broke.

Backward technology, low productivity

According to Mr Nguyen Tan Dinh, 10-15 years ago, businesses invested, always brought new machinery. So far the production line is outdated. For many reasons, the business has not timely innovations. It is also one of the causes of efficiency, labor productivity is not high, leading to high-paid workers do not.

According to TuoiTre Online