Tufts University Releases Study on Better Work Program in Vietnam

An independent research from Tufts University in Massachusetts on the Better Work program in Vietnam showed that many garment makers in Vietnam are applying a traditional paycheck, the “low basic wage,” and workers have to do overtime if they want to raise their income. Better Work, which was kicked off in 2009, is a collaboration between the International Labor Organization (ILO) and the International Finance Corporation (IFC). It is funded by the governments of Australia and Ireland, the Netherlands Ministry of Foreign Affairs, the State Secretariat for Economic Affairs – Switzerland (SECO), the Employment and Social Development Canada (ESDC), and the U.S. Department of Labor (USDOL). The program now provides services to over 400 plants with 517,000 workers, accounting for 21% of the total workers in Vietnam’s garment sector. According to the independent research by Tufts, Better Work has lifted a number of companies out of the list of companies with long working hours, low pay and abuse of internship. In Vietnam, workers at companies subscribed to Better Work said their income rose weekly and they were less worried about overtime work and low salary compared to five years ago. The report also noted that about 15% of the factories joining the Better Work program fail to comply with the minimum wage in the beginning of the research, but the rate fell to 3% after five years. Companies signed up for Better Work reported their average profit up 25% from four years earlier. (Lao Dong – Labor Sept 27)