The effect of trade union finance on employee social security: An empirical research from enterprise governance practices

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Abstract

The purpose of this paper is to examine the impact of trade union finance on ensuring social security (SS) for workers in enterprises based on the five pillars of SS (namely: ensuring a minimum income level, enhancing risk management capabilities, ensuring income distribution, promoting sustainable employment, developing labor market, and improving social management efficiency for workers). This study utilizes structural equation modeling (SEM) to test hypotheses in the proposed research model using survey data collected from 770 workers who pay union dues at enterprises with established trade unions. The findings indicate that the trade union financial spending policies and union financial spending ratios ensuring SS both have a positive impact on the five pillars of SS. Supervising trade union financial spending positively influences the enhancement of risk management capabilities and ensures income distribution. The competency of trade union officials affects enhancing risk management capabilities, income distribution, and ensuring a minimum income level for employees. Based on the research results, the authors propose several suggestions to improve the efficient use of trade union financing to guarantee SS for workers in Vietnamese enterprises.

Keywords: Social Security, Vietnamese Enterprises, Workers, Trade Union Finance

Authors’ individual contribution: Conceptualization — T.A.P., T.K.A.V., and M.D.N.; Methodology — T.K.A.V.; Investigation — T.A.P. and M.D.N.; Resources — T.K.A.V.; Writing — T.A.P., T.K.A.V., and M.D.N.; Supervision — T.A.P. and T.K.A.V.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G3, I38, J5

Received: 01.08.2024
Accepted: 16.01.2025
Published online: 21.01.2025

How to cite this paper: Pham, T. A., Vu, T. K. A., & Nguyen, M. D. (2025). The effect of trade union finance on employee social security: An empirical research from enterprise governance practices. Corporate Law & Governance Review, 7(1), 48–59. https://doi.org/10.22495/clgrv7i1p5