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DEPARTMENT OF LABOUR, INVALIDS AND SOCIAL AFFAIRS - HCMC LABOUR DISPUTE SETTLEMENT SYSTEM IN VIETNAM LEGAL FRAMEWORK AND CHALLENGES Presented by M. HO XUAN Dung Deputy Manager - Labour and Remuneration Service Context In the late of 1980s, Vietnam initiated a major economic reform “Doi moi” (Renovation) - Transition from a command economy to a socialist market economy: - export-oriented industrialisation strategy, focusing on labourintensive manufacturing industries: garment and textile, electronics, footwear and food processing: 20% of the total GDP, 50% of total export value - Requirements : a need for migrant labour from agricultural provinces of the country - Revision of the legislative framework for employment relations: - Labour code 1994 - Law on trade union. Reasons: problem of conflict between employers and workers in the new conditions of a market economy Labour disputes settlement system stipulated in the Labour code 1994 Definition of labour dispute (first time in labour code) : disputes on rights and interests relating to employment, wages, earnings, and other conditions of work; to the implementation of employment contracts and collective agreements; and to issues arising from vocational training or apprenticeship. Classification : + individual labour disputes between individual workers and the employer + collective labour disputes between the workers' collective and the employer. absence of definition of labour collective the practice recognise it as all the employees working together within any one enterprise or any one section of an enterprise. it seems that there is confusion between the right based collective dispute and the interest based collective dispute. Legal framework for labour dispute settlement (under labour code 1994) For the individual disputes : Disputes ECC or District conciliator Court For the collective disputes : Disputes ECC or District Conciliator PAC Court or strike Enterprise Conciliation Council Requirements: All enterprises employing ten or more workers and having a trade union are required to set up a conciliation council Composition: equal number of representatives of employer and employees; the number of council members: agreed upon by both sides The term of office is two years The chairman and secretary of the council are appointed by rotation among the representatives of each party. Principle of agreement and unanimity Competence ECC examine and settle the individual and collective labour dispute by the method of conciliation set forth conciliatory proposals for consideration by the disputing parties Mutual agreement: disputes solved Failure of conciliation: right to request the court District Conciliator In case there is no conciliation council in the enterprise, the labour dispute can be referred to the district conciliator, who is selected from the officials of the labour office of the district. Provincial arbitration council (PAC) Composition :- full-time and part-time members who are representatives of the labour office, the trade union, the employers and a number of lawyers, administrators and social workers in the locality; - odd number of members, which shall not exceed nine, and shall be chaired by the representative of the provincial labour office The term of office of the labour arbitration council is three years Principle : decisions by majority and secret ballot. required to proceed with the conciliation and settlement of the collective labour dispute within ten days of the date of receipt of the application for dispute settlement. Problems Legally : these procedures remained primarily influenced by the principles of a command economy; not flexible, but too complex for a legal resolution In practice, all collective disputes are settled outside the dispositions of the law Reasons : + workers do not have confidence in the neutrality of the conciliation council + No ECC = No PAC + Wildcat strike: - effective means for workers, supported by task force, who is created by local authorities + task force composed of representatives from provincial departments and agencies such as the labour administration, Federation of labour, industrial zone administration and the representative of district people‘s committee + purposes : get the workers back to work to preserve social peace and public order and to prevent the strike from spreading to enterprises. + Settlement method : help two parties to negotiate this solution encouraging the workers to go on strike without passing through conciliation and arbitration stipulated by law. The recent amendments to the Labour code 1994 Two categories of collective dispute: - Rights-based collective dispute - Interest-based collective dispute Two procedure of collective dispute settlement. + For the rights based collective dispute: ECC or district conciliator (liberty of choice) People committee chairman court or strike + For the interest based collective dispute : ECC or district conciliator (liberty of choice) PAC Court or strike Problems after amendments Legal procedures do not work as the wildcat strike has proved to be the most effective means for workers to redress their grievances “Workers are used to the intervention of the task force and this intervention is clearly very effective, they don’t want to follow the new procedures for their disputes settlement. When workers want some things, they stop working and demand the intervention of task force” Changes to task force activity : facilitate the negotiation of both parties’ employers and employees by giving the instruction Promoting negotiation in the enterprise. The failure of negotiation between two parties provokes the strike, not vice versa (the strike provoking the negotiation). DEPARTMENT OF LABOUR, INVALIDS AND SOCIAL AFFAIRS - HCMC