Labour law

 

Research project:          Revision of the Labour Code and Trade Union Law: The Roles of Employers in the Reform of the Industrial Relations System

Researcher:                    Dr. Do Quynh Chi (Research Center for Labour Relations)

Researcher sponsor:      Vietnam – ILO Industrial Relations Project

Research time:               March, 2010

Research summary:

The promulgation of the 1990 Trade Union Law and 1995 Labour Code marked the beginning of a historic transition of the industrial relations (IRs) system of Viet Nam ‘from command to market’. Yet, almost two decades later, both laws have revealed inappropriateness, obstacling the development of enterprises and the economy when the IRs have changed drastically. Accordingly, the government of Viet Nam and its social partners have embarked on the amendment of the two laws by 2010. This report was one of the two discussion papers prepared by the International Labour Organization (ILO). While the first discussion paper focused on union issues, the paper analyzed the implementation of IR-related provisions in the two laws from employers’ perspective.

Particularly, the report covered characteristics of employers in Viet Nam and the factors that influenced the employer’s participation in IRs such as the pressure to reduce production cost including wages and raise productivity due to low profit margin; reliance on imported materials; and the level of coordination among them.

The report discussed six aspects of IRs to be revised in the laws; those were establishment of new enterprise unions, collective bargaining, labour management consultation, strike and strike settlement, upper-level union and representation in unorganized enterprises, employer organization and upper-level consultation. Also, the report presented recommendations on the revision of the laws and the good practices that can be adopted independently of the legislation.

 

 

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