Illegal strikes making investment environment worse

16:51' 28/04/2008 (GMT+7)
VietNamNet Bridge – Vietnam does not lack laws to deal with strikes, but it lacks a mechanism to implement the laws effectively.
Illegal strikes are still taking place in many industrial zones and export processing zones in southern cities and provinces, and are making Vietnam’s investment environment less attractive in the eyes of foreign investors.
Alain Cany, Chairman of EuroCham, has recently expressed his concern over the illegal strikes that have taken place at some foreign invested enterprises (footwear, garment, furniture).
He said that EuroCham has been receiving more and more reports from its members about illegal strikes. These are strikes that do not follow the procedures stipulated by the amended Labour Code. Most of the strikes have occurred because labourers want higher pay in the face of the higher inflation.
EuroCham well understands that labourers have the right to go on strike and shares the concerns about inflation, but it has called on local authorities to take action to make the regulations on strikes stipulated by the Labour Code respected, Mr Cany said.
A lot of foreign investors are worried that the number of strikes will increase in accordance with the inflation rates.
According to state management agencies, labourers have gone on strike recently because they have complaints about wages, extra working hours and other unsatisfactory treatment.
In fact, the strike mushrooming began at the end of 2006, and since then, state management agencies have been considering drawing up necessary measures to cool the strikes down.
In an effort to clean the investment environment and ease worries of foreign investors, the government promulgated Decree No 11 on compensation for employers for damages caused by illegal strikes.
Under the decree, employers have the right to ask trade unions or representatives of labourers to compensate them for damages caused by illegal strikes. The employers have the right to initiate legal proceedings at district courts where strikes occur if the representatives of labourers refuse to make negotiations.
However, experts have pointed out that the decree can only help a little in dealing with illegal strikes. They stressed that it is necessary for labourers and employers to sign collective agreements, as the labour laws just provide the frame for all types of enterprises.
Meanwhile, according to the Vietnam Labour Union, collective agreements have not been used popularly (70% of state owned enterprises, over 10% of foreign invested enterprises, and less than 5% of private enterprises).
An official of the Ministry of Labour, War Invalids and Social Affairs, said that Vietnam does not lack laws to settle strikes, just a mechanism to bring the laws into full play.