Vietnamlawmagazine

Dr. Dang Quang Dieu

Director, Workers-Trade Union Institute

The current Trade Union Law, which was passed in 1990, has created an important legal corridor for Vietnamese trade unions to perform their functions and tasks according to law, greatly contributing to the national economic development and socio-political stability, and promote their role and profound influence in society.

Yet, as it was promulgated more than 20 years ago in the initial period of switching from a centralized and state-subsidized economy to a market economy, the 1990 Trade Union Law (the 1990 Law) has revealed limitations and weaknesses, with not a few provisions no longer meeting the requirements of the new situation. It should be therefore revised to conform with the Constitution, the Labor Code, the Enterprise Law and relevant laws. Particularly, the position, functions and powers of trade unions should be more clearly defined and new mechanisms be adopted for trade unions to properly perform their functions and tasks in the new period.

Based on comments of scientists, legal experts, managers, trade union officials and workers nationwide, the Trade Union-Revising Committee finalized the draft of the revised Trade Union Law (the draft) and submitted it last November to the National Assembly for debate.

This article highlights new contents of the draft which are supported by many National Assembly deputies as well as public opinions:

Legal status of trade unions

On the basis of Article 10 of the 1992 Constitution and perpetuating the provisions of the 1990 Law, the draft continues affirming the legal status of trade unions. It stipulates that trade unions are broad socio-political organizations of the working class and laborers. Trade unions are members of the political system of the Vietnamese society. They represent, care for and protect legitimate rights and interests of workers, civil servants, public employees and laborers (employees). They participate in the state administration, socio-economic management, and examine and oversee activities of state agencies, other organizations and enterprises. They also educate and mobilize employees to study and raise their professional qualifications and skills, abide by law, and build and defend the socialist fatherland of Vietnam.

These provisions reiterate the viewpoint of the Party and the stance of the working class that trade unions are the only organizations that represent employees and reject the pluralist idea on trade unions.

Employees in non-unionized organizations and enterprises

At present, trade unions are not established in most small-sized enterprises of under 20 employees. Therefore, drafters hold that the draft should create legal conditions for the quick establishment of grassroots trade unions and clearly define the responsibility of the State, agencies, organizations and enterprises to coordinate in and support the establishment and operation of trade unions in these enterprises.

Pending the establishment of grassroots trade unions, the immediate superior trade unions will represent and protect legitimate rights and interests of employees.

Foreign employees’ right to join trade unions

Under Vietnam’s policy on attraction of foreign investment, tens of thousands of foreign specialists, technicians and employees are now working in foreign-invested and domestic enterprises in the country. Contradictions have been observed in the labor relations between foreign employees and employers, but no trade unions have protected these foreigners. This reality has posed the requirement to take into consideration the admission of foreign employees into Vietnamese trade unions.

However, opinions on this matter remain divergent. Some hold that foreign employees in Vietnam, who satisfy certain conditions, should be admitted into Vietnamese trade unions. Concretely, foreigners working in foreign-invested enterprises in Vietnam or in Vietnamese enterprises under labor contracts of one year or longer and work permits issued by competent authorities, who voluntarily join and recognize the Statutes of Vietnamese Trade Unions, may join Vietnamese trade unions until they no longer work in the country. Meanwhile, others propose not to admit foreigners into Vietnamese trade unions, citing the reason that the management of immigrant laborers is still limited.

This matter will be further studied and submitted to the National Assembly for decision.

Number of employees required for establishment of grassroots trade unions

At present, over 90% of enterprises set up under the Enterprise Law are small- or medium-sized, and the number of enterprises with under 20 employees accounts for over 80% of the total number of enterprises.

The establishment of trade unions in non-state enterprises is difficult as most enterprises are small while employers are reluctant to create conditions for employees to set up trade unions and participate in union activities. As a result, in recent years, grassroots trade unions have been set up in only 51% of non-state enterprises with 20 or more employees.

In order to create a legal basis for the establishment of grassroots trade unions in enterprises, the draft provides: “Within six months at most after this Law takes effect or after agencies, organizations or enterprises enter into operation, agencies, organizations and enterprises with 20 or more employees shall set up trade unions to represent, take care of and protect legitimate rights and interests of employees and build harmonious, stable and progressive labor relations within these agencies, organizations and enterprises.”

Protection of trade union representatives

Most grassroots trade union representatives, particularly in enterprises, are part-timers, who are elected by employees to represent and protect employees’ legitimate rights and interests. Yet, they are actually employees working under labor contracts and submit to the employers’ management.

In the market economy, when settling matters related to the interest relations between the employees’ collectives and the employers, the work of union representatives in their capacity as representatives of employees in negotiations with employers to protect the former’s interests is very sensitive. If they stand on the side of employees, protecting their interests, they will, of course, hardly gain the sympathy of employers. In this case, they may face difficulties, challenges or certain risks such as transfer to lower- paid jobs or termination of labor contracts. This shows that part-time union representatives are even more vulnerable than employees and need to be protected.

The draft prescribes mechanisms to protect part-time union representatives. Their jobs are secured under labor contracts concluded with agencies, organizations or enterprises. If their labor contracts expire while they are still working as members of the executive boards of the grassroots trade unions, their labor contracts will be extended to the end of the trade union term, if they so agree. If they are re-elected to the executive boards for another term, their employers must sign new labor contracts of an indefinite term or a term equal to the term of the grassroots trade union.

Trade Unions’ finances

The Revising Committee proposed the new Trade Union Law should provide for the obligation of agencies, organizations and enterprises of all economic sectors to contribute to the trade union budget an amount equal to 2% of their wage funds paid to employees.

The 2% amount has been collected over almost 50 years under the Trade Union Laws of 1957 and 1990. The collected amounts have been used by trade unions to organize training courses to raise employees’ professional qualifications and skills, legal knowledge and sense of discipline, to organize emulation movements in production and reward to employees.

The amounts contributed to trade unions have created conditions for trade unions to attend to material and cultural lives of employees, helping establish harmonious, stable and progressive labor relations within enterprises; and promoting the sustainable development of enterprises for building a stronger working class in the period of national industrialization and modernization.

The collection of 2% funds for the trade union budget has gained the support of National Assembly deputies and public opinion.-