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The Vietnam News

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[Year 2001]

Please, no rabble-rousing

HO CHI MINH CITY - The workload is murder, attests Le Nhat Quang. As head of Vietnam's labour federation in Tan Binh district of Ho Chi Minh City, Quang must supervise trade unions at 307 private companies, both foreign and local, and hustle to set up new unions at hundreds more. Has he ever helped any of his union members lobby for a raise? "The point is not to increase their salary," Quang replies. "The point is to make the workers understand why their salary is low." Confrontation has never been a tool of Vietnam's trade unions, which report directly to the Communist Party. Unlike their feisty brethren in South Korea, Taiwan and the Philippines, Vietnamese unions don't paint themselves as worker-advocates pressuring employers for better working conditions. They aim to act as a bridge between boss and worker, to increase productivity, organize social activities and resolve disputes without resorting to strikes. Within the factory-level unions, supervisors and managers routinely call the shots.

The paradox is striking: a communist "nation of workers" is burdened with relatively weak trade unions. At the same time Vietnam's transition to a more market-oriented economy increases pressure on unions to change. But it remains doubtful whether the largely complacent union bureaucracy can mould itself into a force more responsive to workers' needs for legal understanding and collective bargaining. However, if the labour federation becomes irrelevant, the party risks losing its grip on the burgeoning private sector, where just 30% of the eligible two million workers are unionized. For a glimpse of the gulf between workers and unionists, visit a rickety, laundry-laced boarding house in Binh Duong province in the south. Among the workers who sleep five to a room, meet 24-year-old Nguyen, who toils for Tanimex, a state-owned firm with Taiwanese consultants that supplies shoe soles to a Taiwanese company, Jijil Suong. Nguyen complains that he works a daily 12-hour shift but gets paid only 550,000 dong ($38) a month. Other workers wrote to the union requesting raises, he says, but their letters seemed to fall into a black hole.

"I pay 4,000 a month to the union, and I haven't gotten anything back," Nguyen declares. Why doesn't he just elect new union leaders? "I don't know anything about elections. Workers are never allowed to attend those meetings, just senior staff," he replies. A Tanimex spokesman confirms that ordinary workers don't routinely attend union meetings, but says the rest of Nguyen's account is inaccurate. Still, Nguyen won't quit because he fears he'd have to pay a labour recruiter a high fee to find him a new job. He won't go on strike because it's too risky. And he certainly doesn't want to return to his home province up north, where his parents are farmers.

Nguyen envies his friend Hien, a 20-year-old worker at the German lingerie manufacturer Triumph, where there is no union. Hien earns 900,000 dong monthly for a daily eight-hour shift sewing brassieres, allowing her to send 500,000 back to her family each month. She says the job is easier than being a seamstress in her home village. Does she see any need for a union? "If the trade union protects workers' rights, I think we need a trade union, but if it just protects its own rights, I don't think we need a trade union," she says. For the labour federation, counteracting such bad word of mouth is complicated by a catch-22. Under Vietnamese law, workers should take the initiative to set up unions at companies with more than 10 employees. But unless the company allows outside unionists to proselytize inside the factory, workers have little incentive to organize. And there's little appeal in paying dues to an organization that doesn't explicitly represent their interests.

At the Binh Duong labour federation, for example, Vice-Chairman Nguyen Tam Duong recounts that Triumph twice rebuffed his efforts to meet workers. Triumph refuses comment. Yet Duong never considered meeting workers outside the factory to whip up enthusiasm. "If the managing director doesn't agree, we have no chance to hold discussions with workers," Duong says. Other unionists point to a political climate that discourages rabble-rousing. In a Ho Chi Minh City district, a unionist says he never approaches workers because "the other workers might think I'm doing something to provoke them to fight against the boss. My colleagues would not understand my determination and goodwill. I'm afraid it would affect my career." The party has no wish to see unions grow too strong. It realizes that Vietnam's primary draw for foreign investors is an inexpensive, pliant, and relatively efficient workforce. And the state's primary objective is generating employment for 1.4 million new job seekers a year. It considers the "right to work" the most important right advanced by the unions. No matter what the frustrations, most workers are relieved to find some road out of rural poverty, as their earnings help buy the motorbikes, televisions, and other consumer goods that they couldn't imagine owning a decade ago.

In recent years, diplomats and foreign business associations have helped spread the word to employers that unions are not aggressive, and have encouraged the bosses to make voluntary union donations. Even the South Koreans and Taiwanese, long reputed to be the foreign employers most resistant to labour activism, are accepting more factory-level unions. The challenge remains to foster more honest communication between unionists above and workers below.

Wanted : a new attitude

Wildcat strikes numbered 71 last year, up slightly from 1999 but still few for the region. They don't accomplish much. At the Hue Phong shoe factory in Ho Chi Minh City, where some 3,000 workers walked out last September without consulting their union, life has barely changed. Workers are no longer forced to live in fetid company dormitories, 20 to a room, but the pay is the same and the scolding by overseers just as fierce. Workers say that their Taiwanese supervisors still make the final decision on who can join the union. Within the vast network of unions in Vietnam, there are hints of progress. In Haiphong, for example, a unionist encouraged unhappy workers at a robotic parts factory to send complaint letters to the big boss in Japan, who then replaced the local Japanese manager. In Binh Duong, 229 out of 352 factory-level unions have collective bargaining agreements. A labour federation newspaper, Lao Dong, publicizes some workers' complaints.

"By many measures--the coverage of labour laws, the tolerance of wildcat strikes, the slowly increasing clout of grassroots unions, the relative openness of debate over labour issues--there is evidence that the Vietnam labour rights' regime is more flexible and responsive than its Chinese counterpart," says a March report by the U.S. Congressional Research Service. Some American labour activists are preparing to oppose ratification of the U.S.-Vietnam bilateral trade agreement on the grounds that Hanoi does not allow independent unions. But the pact's supporters argue that more U.S. investment could help improve working conditions. Meanwhile, the labour federation is flexing its muscles at the national level to demand more state funds to pay unionists to be placed in large private companies. A paternalistic legacy colours its anxiety. "Without the trade union, there will be no one to organize culture, sports, and entertainment activities. They will just work like machines," frets Hanoi unionist Tran Van Thuat.

But demands for state funds are highly controversial when the government is pushing for administrative reform and looking to cut 70,000 public-sector workers in the next two years. Money can't buy a change in mindset, critics caution. What Vietnam needs is a creative, responsive, well-trained team of union leaders--not a more bloated union bureaucracy.

By Margot Cohen - The Far Eastern Economic Review - April 19, 2001.