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The 4 million USD project helps Vietnam to improve industrial relations


On the morning of 3 June, 2013 in Hanoi, the project: "Support for the development of industrial relations, wage fixing mechanism, capacity and implementation institutions of labour law in Vietnam" has launched to develop the industrial relations in Vietnam, help employees and employers benefit from the Labour Code and modified Trade Union law.

     The 4 million USD project will be implemented within 4 years by the Ministry of Labour, Invalids and Social Affairs in coordination with the International Labour Organization (ILO) with financial support of the United States Government.
    This is a non-refundable Official Development Assistance project aimed to support Vietnam in the effective enforcement of the new labour laws, enhance the influence of representative organizations of employers and employees, improve collective negotiations and social dialogues, develop the Minimum Wage Law and complete the wage fixing system.
     Mr. Gyorgy Sziraczki, ILO Vietnam Director said the new labour laws will create a sound legal foundation to help Vietnam improve relations between employers and employees and solve enduring problems at work. However, how to effectively enforce the laws is a bigger problem than formulating them. Besides, the participation of authorities, representative organizations of employers and employees from the central to the local is "a key to success".
     Deputy Minister of the MOLISA Pham Minh Huan said the labour relations that are substantially improved and protect the legal rights and interests of relevant parties will create a healthy investment environment, which contributes to economic growth and social justice. He affirmed that the Vietnam and ILO cooperation project on "Support for the development of industrial relations, wage fixing mechanism, capacity and implementation institutions of labour law in Vietnam" officially launched is significant to support Vietnam to overcome these challenges.
     The Deputy Minister said the modified Labour Code and revised Trade Union Law (that come into effect on 01 May, 2013 and 01 January, 2013 respectively) have many new contents related to conditions, standards and labour relationships. These two important legal documents are expected to improve the mediation role of the Government to effectively deal with labour disputes and prevent spontaneous strike.

     According to Mr. Yoon Youngmo, Chief adviser of the Vietnam - ILO project on labour relations, "Labour mediators' job is very important to maintain and develop labour relations in the world. Furthermore, if Vietnamese Government   mediators are more proactive and more closely monitor “hot spot strikes ", get involved in the early stages of collective negotiation process, the number of spontaneous strikes will significantly reduce and both businesses and employees will benefit from it.