Illegal collective strikes happened since the past few years and continuously increased these months have cause a big headache to foreign investors and government. 
 
With great efforts, Mr. An Le, Chairman of VITAS, had tried to arrange various meetings between the association and FDI representatives with senior officers of related agencies.

Leading by Mr. An, representatives from Hong Kong, Korean, Taiwan associations, and a Singaporean FIE (Chutex) attended meetings with MOLISA and VCGL respectively in Hanoi on Wednesday, August 20, 2008.

It was so good that the Government and related agencies including MOLISA, VCGL, VCCI had shown their concerns and shared understandings with enterprises on the seriousness of the problem, and were taking efforts in giving directions and/or taking proper actions.

Just two days before the meetings, the Deputy Prime Minister Nguyen Sinh Hung signed a Decision No1129/QD-TTg dated 18/Aug/08 promulgating Plan to implement Direction No.22-CT/TW dated 05/Jun/08 by the Secretariat Committee regarding enhancement in leadership and direction to set up harmonious, stable and progressive labor relation in enterprises (see attached the Decision in original).

Beside discussion on the bad influence of recent illegal collective strikes to the investment environment, and some minor arguments about causes of strikes, the attention was mainly paid to the potential solution in details.

The agencies were officially given a letter prepared by VITAS’ Chairman, proposed to be co-signed by various associations (see attached the Letter in original), with major contents as follows:

The association hereby would like to send the Labor Relation Committee (LRC) and relating governmental agencies some recommendations as follows:

1. The LRC studies and submit for the Government’s approval of amendment to the Decree No.133/CP promulgating process of solution for labor dispute relating to benefit, aiming at making the solution quicker.

   - Set up Arbitration Committee by district or profession sector for localities already existing Textile and Garment Association (e.g. Hochiminh City , Binh Duong …) in stead of Provincial Arbitration Committee as Decree No.133/CP stipulated.

   - Maximum time for this Committee to resolve dispute is 05 days (instead of 07 days as Decree No.133/CP stipulated.)

2. Set up and bring into operation a model Hochiminh City Textile and Apparel industry’s Labor Arbitration Committee for solving well labor disputes in Hochiminh city textile and apparel industry. The Committee comprises representative of the city’s Trade Union, representative of AGTEK (representing employers), representative of DOLISA and some labor specialists.

3. The Labor Relation Promotion Center of MOLISA concentrates to prioritize supports to Hochiminh City by assisting the city’s textile and garment enterprises in popularizing labor law and regulation of labor dispute solving procedures to all workers and clearly stating that workers joining illegal strikes are not supported and their request for benefit shall not be settled by the Government.

4. The LRC goes unanimous in submitting for the Government’s approval to direct all levels of local authorities to be more active in keeping public order and security for enterprises; more resolute with any instigator to illegal strike and infringement to enterprise’s assets and violation to laborers’ freedom right of joining or not joining illegal strikes.

5. The LRC has official letter to request the mass media agencies to join the propaganda the above contents, especially propagandize and praise enterprises with good practice in improving workers’ living condition and build up good labor relation. In the mean time, criticize enterprises and workers violating the law on labor dispute resolution as currently stipulated. ”

It was emphasized that the propaganda should be made very frequently and actively. It would create frequent dialogues for employers and laborers to understand each other’s demands, to go unanimous in each party’s rights and responsibilities and encourage them to abide by the laws.

Hochiminh city, comprising about 500 – 600 enterprises, was chosen to be a model area for the propagandizing campaign. The campaign will be firstly applied to a “hottest” area of the city with the most strikes, and then widen to remaining parts of the city and other provinces.

VCGL and MOLISA agreed to give fully support this proposal and suggested also applying similar model to IPs and EPZs by setting up Intermediate Arbitration Council or Salary Consultancy Agency in the zones. Trade Unions and employers at the IPs and EPZs should have frequent meetings and go unanimous in common average reasonable salary scheme in the zones.

Further discussions are needed and VITAS Chairman will continue to meet with the relating agencies to bring the proposal into practice in the soonest time.

                                                           Briefed by Mandy – HKBAV 20.08.08