In fact, no business wants to cut labourers now. Both businesses and labourers are in the same boat and they need to cooperate with each other to survive the big waves, labour experts say.

50,000 labourers lose jobs

According to Dang Quang Dieu, Deputy Head of the Social Policies Division under the Viet Nam General Confederation of Labour (VGCL), the reports by labour unions from 11 provinces and cities showed that 50,000 labourers have lost their jobs. HCM City, Quang Ninh and Can Tho each have had 8,000 labourers lose their jobs, while Dong Nai 7,000, Vinh Phuc 5,000 and Hanoi 4,600.

Dieu said that VGCL is going to ask local confederations to use the fund for job creation, which now has VND63bil, to support unemployed labourers and help them find other jobs.

VGCL has sent a petition to the government, asking for the application of long-term measures to create jobs and ensure the rights and interests of labourers in such difficult conditions.

Businesses now like dikes at risk of breaking

Phung Quang Huy, Director of Job Centre under the Viet Nam Chamber of Commerce and Industry (VCCI), talked to VietNamNet about the difficulties businesses and labourers are facing.

Many enterprises have cut their workforces, which has been badly affecting the lives of labourers and the existence of the enterprises themselves. What would you say about this?

The dismissal of labourers at this moment is a last resort, since the dismissals will make businesses lose workers they have trained, and they will have to employ new workers and retrain the workers when business picks up.

A lot of enterprises have spent money on production lines and equipment, and they will suffer if they dismiss labourers and halt investment plans. The businesses now can be described as dikes buckling under big waves.

What measures do we need to employ now to overcome the difficulties?

We need comprehensive measures. Under the current laws, businesses have to pay labour union fees and unemployment insurance fees. If the government allows businesses to delay the payment for three to six months, the businesses which are on the verge of the abyss will be able to pick themselves up, survive and develop.

We need to stimulate demand by many methods, so that small- and medium-size enterprises do not have to stop their operations. The state can support labourers by providing preferential loans for businesses which can use the capital to create more jobs.

The state also needs to support businesses so that they can open vocational centres. Every province, especially every industrial zone, has to open training courses which last three to five days at least, so that dismissed labourers can find other jobs.

In general, we need the cooperation of three parties: the government spends money to stimulate demand, businesses get lower profit, while labourers also need to share difficulties with businesses in the difficult period.

Do you think that the requirement on unemployment insurance payment at this moment will cause difficulties for businesses and labourers?

Unemployment insurance plays an active role in Vietnam’s labour market. It does not put a heavy burden on businesses, while in fact, benefit s businesses. Previously, when the unemployment insurance scheme did not exist, businesses had to pay 100% of unemployment allowance to labourers. Nowadays, the allowance is paid by social insurance (the state pays 1%, businesses 1% and labourers 1%).

However, at this sensitive moment, the state can support businesses by lending money to businesses so that they can pay unemployment insurance and pay the money back later to the state.

Joint efforts needed to steer the boat on the big waves

Nguyen Thi Minh Tam, Communication and Business Development Director under Navigos Group, Human Resource Consulting & Training, said that both businesses and labourers are in the same boat and they need to cooperate with each other to survive the big waves.

Do you think businesses need to maintain their workforce or lay-off workers in the context of economic growth slowdown?

This is now really a challenging period for both businesses and labourers. Both businesses and labourers are in the same boat and they need to cooperate with each other to survive the big waves. Cutting workforce is just a last resort as no one wants to see qualified staffs leave.

The companies need to give clear explanations to their members about the decisions they make, including decisions on employment dismissal. And more importantly, they need to fulfill legal procedures in all the decisions.

What is the forecast of Navigos Group about unemployment in 2009 and the measures to minimise lay-offs?

In 2009, businesses, both big and small, may experience a process of restructuring in order to cut out waste in organisation which can help them overcome difficulties. This means that they will have to cut jobs or cut expenses.

In such conditions, businesses need to try to retain staffs that are important. (VNN)