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The necessity of joining ILO's Convention No.98 of Vietnam

01/06/2019

On May 29th, Vice President Dang Thi Ngoc Thinh reported to the National Assembly the entry of the International Labour Organization (ILO) Convention No.98 on Application of Principles of the right to organize and collectively negotiate (known as ILO's Convention No.98).

 

After that, under the authorization of the Prime Minister, Minister of Labour- Invalids and Social Affairs (MOLISA) Dao Ngoc Dung presented the Interim Report of the 98th Convention of the ILO, then Chairman of the Foreign Affairs Committee of the National Assembly Nguyen Van Giau presented examination paper of the accession to this Convention.
According to Vice President Dang Thi Ngoc Thinh, joining the Convention No.98 is essential and meaningful in all aspects of politics, legal and socio-economic. Specifically:
Politically, joining the convention will affirm and implement the Party's and State's foreign policy, international integration, and Vietnam's strong political commitment as a member of ILO.
Legally, joining the convention will strengthen the legal basis for workers and employers to conduct collective bargaining, sign a collective labour agreement more effectively in order to build a stable labor relationship.
In terms of economy and society, the joining to the convention will make collective bargaining more effectively. The effective collective bargaining mechanism will minimize the negative impacts of globalization, balance labour relations among the parties, positively impact on labour productivity and ensuring better security-politics, socio-economy.
Presentation of the Explanatory Statement on the accession of ILO Convention No.98, Minister of Labour - Invalids and Social Affairs Dao Ngoc Dung said that Convention No.98 on the Application of Principles of Organizational Rights and Collective Bargaining is one of the eight basic ILO conventions. As of May 2019, there were 166 out of 187 ILO member countries in the world participating in this Convention. Vietnam's accession to Convention No. 98 is essential and meaningful.
"Joining Convention 98 is a serious implementation of Vietnam's mission as a member of the ILO; to strengthen political commitment and enforce labour-related commitments in Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), and facilitate the entry of the Free Trade Agreement with the European Union (EVFTA) at the same time. Besides that, it will consolidate the legal basis for workers and employers to conduct collective bargaining, signing collective labour agreements, create a stable working environment, forecast and manage conflicts between employers and employees to prevent and limit labour disputes and strikes.” Minister Dao Ngoc Dung said.
In addition, effective collective bargaining will help businesses and the Government to make right and timely decisions based on the frequently collected information through the negotiation process, to ensure progress in the main enterprises, thereby increasing stability of each locality and the whole country. Efficient collective bargaining system will create more equitable distribution of income at the social level. This is an important function of labour relations. In fact, deeper integration into the global economy tends to widen the gap between economic sectors, between different groups of workers and increase in social fluctuations, which can be threatening the long-term and social cohesion of economic development. The accession and implementation of the Convention 98 will create a legal basis for workers and employers to conduct collective bargaining on wages and establish other working conditions such as overtime, meals between shifts and other welfare regimes ... This is the foundation for the operation of the labour market in Vietnam in accordance with the objective rules of the market economy, which direct development towards building modern labour relations in Vietnam.
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