U.S. Grants $4M to Improve Labor Relations in Vietnam

Vietnam and the International Labor Organization (ILO) kick-started on May 31 a $4-million project to improve labor relations in the 2013-2016 period. The project with funding from the U.S. government aims to help the Southeast Asian country implement the revised Labor Code and Trade Union Law and improve domestic labor relations. It will focus on accelerating training to raise public awareness of the new regulations, expanding the role of trade unions in businesses, supporting new minimum wage systems and promoting collective bargaining. Pham Minh Huan, deputy Minister of Labor, Invalids and Social Affairs, said that the grant will help create a healthy working environment and promote steady growth and social equality. ILO Director in Vietnam Gyorgy Sziraczki emphasized that the revised labor code lays firm foundations for the country to improve relations between employers and employees and resolve workplace disputes. The revised Trade Union Law and Labor Code respectively came into effect on January 1 and May 1 this year. Employees’ rights are clearly specified and the role and responsibilities of trade unions have been broadened. This is the ILO’s fourth labor relations project in Vietnam following the three others carried out over the past 11 years. Vietnam is still facing many other critical industrial relations issues, including minimum wage, dispute prevention, labor strike, overtime payment, migration, female employment and cross-cultural management. (www.chinhphu.vn May 31, Tien Phong – Pioneer June 1, Thoi Bao Ngan Hang – Banking Times June 3 p2)