Promoting Sound Labour Relations for Better Competitiveness

“Skilled, motivated, loyal and disciplined employees are the key to raise productivity, quality and profit of business. Labour intensive sectors like the footwear and textile industry are facing numerous challenges caused by high inflation rate, raising minimum wages, lack of skilled workforce, etc; altogether leading to surpassing employee turnover, unsteady production and even wildcat strikes,” heard the forum on “Promoting sound labour relations for better competitiveness of enterprises in textile and garment and leather and footwear industry in Vietnam” recently held in Hanoi.

 

The forum is part of operating agenda of a technical assistance project entitled “Helping Vietnamese SMEs adapt and adopt corporate social responsibility for improved linkages with global supply chains in sustainable production” funded by the European Union and executed by the United Nations Industrial Development Organization (UNIDO) in collaboration with the Vietnam Chamber of Commerce and Industry (VCCI). Project partners include the European Chamber of Commerce in Vietnam (EuroCham), the Vietnam Leather and Footwear Association(LEFASO), the Vietnam Textile and Apparel Association (VITAS), the Vietnam Electronics Industry Association (VEIA), the Institute of Labour Science and Social Affairs (ILSSA), and the Directorate for Standards, Metrology and Quality (STAMEQ), the National Metal and Materials Technology Centre in Thailand (MTEC), and the Germany Foundation for Economic Cooperation and Development (SEQUA).

 

The forum focuses on sound labour relations in the workplaces and at different levels; and establishes a positive dialogue between employers, employees and stakeholders like trade union and purchasers. Attendants share experience in agreements and processes of Collective Employment Agreement (CEA), also known as Collective Bargaining Agreement (CBA), as well as institutionalisation of dialogues to ensure the reliability and transparency of such dialogue processes.

 

Mr Patrick J Gilabert, Country Representative of UNIDO, said most Vietnamese enterprises are small- and medium-sized and do not have sufficient capacity to comply with the strict requirements of corporate social responsibility. He said: "UNIDO is providing technical assistance for this project to promote environmental and social activities of Vietnamese small and medium-sized enterprises, enhance their sustainable integration in global supply chains through increased awareness of corporate social responsibility, including environmentally sound production, improvement of labour practices, and improvement of international competitiveness.”

 

Mr Vu Huu Tuyen, Deputy Director of a USAID-funded Project on Supporting Implementation of Labour Laws and Promotion of Sound Industrial Relations in Vietnam, said: Employers currently have to view labour relations and human resource management from strategic perspectives rather than traditional concepts of negotiation, bargaining, working conditions, personnel administration and welfare.

 

In addition, to ensure labour relations in harmony, both employers and employees must comply with labour laws. Employers must ensure favourable conditions, build up powerful trade unions, implement all labour policies, and create progressive collective employment agreements. Employers and employees should also host dialogues to reach effective solutions to difficulties, conflicts or disagreements.