Industrial relations

Multi-employer social dialogue benefits southern garment workers

The collective action can reduce staff turnover, strengthen the relationship between workers and employers, and promote stable industrial relations, allowing workers to enjoy the same working conditions across firms.

News | 21 January 2019
HCM CITY (ILO News) – A multi-employer social dialogue among six textile and garment enterprises was held at Linh Trung Industrial Zone in HCM City on 5 January, 2019 as part of a pilot scheme implemented by the ILO’s New Industrial Relation Framework (NIRF/Japan) project.

Following the dialogue, three provisions were agreed between the management and trade unions of these enterprises. They included announcing the annual Lunar New Year holidays on October 15 of the Lunar Calendar every year so workers can better prepare to return to their hometown; increasing mid-shift meal rate from VND15,000 to VND17,000 from 1 April; adjusting regional minimum wage in 2019 from VND230,000 to VND290,000 (5.8 per cent against the current level of each enterprise).

These provisions are expected to benefit more than 7,700 workers of these companies.

“This is a promising sign as a multi-employer social dialogue can reduce staff turnover, strengthen the relationship between workers and employers and promote stable industrial relations, allowing workers to enjoy the same working conditions across firms,” said the National Project Coordinator, Ta Thi Bich Lien.

As part of the pilot, Japan-funded NIRF project also organized two training courses for grass-root trade union leaders at six participating enterprises on strengthening social dialogue at the workplace while supporting unions to collect concerns from workers through organizing periodical dialogues.

Six participating enterprises were Upgain Manufacturing Co. Ltd, Domex Co. Ltd, Kollan-Hugo Knit Co. Ltd, Quint Major Industrial Co. Ltd, Yesum Vina Co. Ltd and Sprinta Co. Ltd, all located at Linh Trung Export Processing Zone & Industrial Park in Thu Duc District, HCM City.