“Balance Point”, the Key to Negotiating Collective Labor Agreements

Xuân Hùng |

In practice, conflicts in labor relations are mainly related to material interests.Therefore, negotiating and signing a Collective Labor Agreement will create a "balance" between the parties and consensus in labor relations.


Signing an agreement to develop together

In Yen Dinh district (Thanh Hoa), there are 2 companies with 100% foreign investment capital and many employees: Alena Vietnam Shoes Company Limited and Weilina Vietnam Shoes Company Limited.

For a long time, workers' mentality showed signs of instability such as working at a slow pace, and some workers were about to quit. In April 2024, through understanding, the Executive Committee of the Trade Union of these two companies realized that the key problem was the slow increase in some income items compared to other companies in the area.

After many negotiations and dialogues, we reached an agreement to sign a Collective Labor Agreement (CLA) with many contents beneficial to the workers: Increasing lunch meals from 17,000 VND to 20,000 VND, dinner meals from 15,000 VND to 17,000 VND, supporting gasoline money of 15,000 VND/person/day; supporting attendance money of 280,000 VND/person/month, childcare money of 50,000 VND/child/month for workers with children under 6 years old, 13th month salary bonus... Immediately after that, the workers' mentality stabilized, the working environment improved... Both the board of directors and workers expressed their gratitude to the Executive Committee of the Trade Union.

According to Mr. Ngo The Anh - Chairman of the Trade Union of Nghi Son Economic Zone and Industrial Parks (KKTNS & CKCN) of Thanh Hoa province, in addition to promoting the signing of the Collective Labor Agreement at each enterprise, Thanh Hoa also has the initiative to organize a signing ceremony for a group of enterprises. Accordingly, in July 2024, after 4 collective bargaining meetings and 14 working sessions and dialogues between the KKTNS & CKCN Trade Union and each enterprise leader, the parties participating in the signing of the Collective Labor Agreement agreed on the content of the signing of the Collective Labor Agreement for a group of enterprises including 7 shoe manufacturing companies, including 4 chapters and 22 articles with many provisions beneficial to employees. Specifically: Increasing the annual lucky money from 20,000 VND to 50,000 VND/person/time; building a loyalty bonus for employees working at the factory for 11 years or more, employees have the right to arrange 50% of their annual leave.

According to Mr. Nguyen Minh Canh - Vice Chairman of Thanh Hoa Provincial Labor Federation, signing a collective labor agreement in groups is a very creative and meaningful way to stabilize the situation of workers and at the same time create a new step forward in labor relations.

The content of the agreement must be specific.

Thanh Hoa Provincial Federation of Labor currently manages 3,679 grassroots unions, with 348,422 employees; of which, the administrative sector has 2,861 grassroots unions with 99,794 employees; the enterprise sector has 818 grassroots unions with 248,628 employees. Over the years, trade unions at all levels in the province have always identified social dialogue and collective bargaining in labor relations at enterprises as the key tasks of trade unions at all levels.

Mr. Vo Manh Son - Member of the Presidium of the Vietnam General Confederation of Labor, Chairman of the Thanh Hoa Provincial Labor Federation - said that although some welfare and salary regimes have been brought up for dialogue and collective bargaining by the parties, they have not achieved the desired results. Therefore, the Provincial Labor Federation directed the direct superior trade union at the grassroots level to strengthen training and guidance for grassroots trade union officials, especially grassroots trade unions in enterprises with a large number of workers and employees, on skills of dialogue, negotiation, and signing of collective labor agreements in a hands-on manner, closely following the specific conditions of each enterprise.

Xuân Hùng
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