Vietnam is pooling feedback from discussions and consultations to guide the revision of the Labour Code and the Trade Union Law aiming to build sound industrial relations.

The topic took centre stage at a two-day national conference entitled the “The Future of Industrial Relations and the Revision of the Labour Code and the Trade Union Law”, which convened in Hanoi on April 1.

Addressing the attendees, Deputy Minister of Labour, War Invalids and Social Affairs Nguyen Thanh Hoa noted that the establishment of a better framework of laws for workers and employers to meet and negotiate, and the strengthening of the capacities of both sides in a changing economic environment, highlighted Vietnam’s commitment to better resolving labour disputes.

As the integration process is posing new challenges for the country to address in terms of industrial relations, the labour official suggested enhancing the capacity of the triumvirate of partners – the Government, the trade union and employers--and creating healthier relations among them, adhering to the rules of the market economy and the law.

Taking the floor, John Hendra, UN Resident Coordinator, said, “Vietnam’s economy has been an extraordinary success story, but if this is going to be successfully matched on the social side then these revisions need to be grounded in the core principles of harmonious industrial relations, social dialogue and three-way cooperation.”

The UN Resident Coordinator and the Executive Director of the International Labour Organisation in charge of Standards and Fundamental Principles and Rights at Work, Kari Tapiola, expressed the UN’s commitment to assisting Vietnam in the process of reforming industrial relations.

Passed in 1994, the Labour Code of Vietnam, coupled with other laws, has created a crucial legal corridor for the country to manage the national economy in the transition to a market economy and to facilitate its integration into the world economy.

Alongside what it had achieved in the integration process, Vietnam has been challenged by numerous issues, entailing labour disputes with escalating wildcat strikes, which have destabilised the labour market and had a costly affect on production and business operations.

According to the Ministry of Labour, War Invalids and Social Affairs, close to 4,000 labour strikes have occurred nationwide since 1995, 72 percent of which took place at foreign-invested enterprises.

There was a surprising finding that almost all these strikes were illegal, given they went outside of the process regulated by the Labour Code.

The vast majority of strikes, however, were motivated by violations of labour law on the part of employers. Statistics showed that up to 90 percent of strikes were related to salary.

To assist Vietnam in addressing these issues, a new “Vietnam-ILO Industrial Relations Project” will be launched on April 2. The 2 million USD project will be funded by One UN, and implemented by the ILO, and the Ministry of Labour, War Invalids and Social Affairs in coordination with social partners and relevant bodies and organisations.

The project will be carried out through 2011 in Hanoi, Ho Chi Minh City, Hai Duong, Hai Phong, Bac Ninh, Vinh Phuc, Dong Nai, Binh Duong and Long An, where the labour markets are booming.

It will support relevant agencies in revising labour-related legal documents to meet international labour standards, and provide technical assistance to enhance the representative capacity of grassroots trade unions.

The project will look toward developing a pilot model for collective negotiations and another model for addressing labour disputes in line with the conditions of Vietnam , and setting up several centres supplying industrial relations-related services in some localities./.