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Aug 08, 2019 / 17:25

Over 82% of strikes in Vietnam occur at FDI enterprises

The causes of the strikes are mainly interest disputes (accounting for 55.22%) and rights disputes (11.94%).

In the first six months of 2019, 67 strikes occurred at foreign-invested enterprises, accounting for 82.1% of the total in Vietnam, according to the Ministry of Labor, War Invalids and Social Affairs.

The number of strikes occurred mostly at South Korean, Taiwanese and Chinese enterprises in southern provinces of Vietnam such as Long An, Dong Nai, Binh Duong and Ho Chi Minh City.
Illustrative photo
Illustrative photo
The majority of strikes happened in labor-intensive businesses, including those in the textile industry (28.36%), leather and footwear industry (19.4%), plastics industry (16.42%) and wood industry (14.93%).

The causes of the strikes are mainly interest disputes (accounting for 55.22%), rights disputes (11.94%), rights and interest disputes (32.84%). However, the strikes were carried out without complying with the prescribed order and procedures, said the ministry.

The ministry said the adjustment of wages and allowances without consulting with workers and trade unions, poor workplace meal quality, lack of dialogue, insubstantial collective bargaining agreements are the main reasons for strikes. 

Besides, some businesses infringed the provisions of labor regulations such as delayed payment of wages, failure in complying with insurance obligations for workers; overtime hours beyond the regulations; bad working conditions and sanitation, among others.

Ngo Duy Hieu, vice president of the Vietnam General Confederation of Labor (VGCL), said that more than 67% of strikes are related to salary and bonus issues, such as overdue wage, incorrect overtime payment, unequal holiday bonuses, among others.

Hieu added that the strikes have decreased over the years. For example, in 2018, there were 214 job stoppages and strikes nationwide, down 35% year-on-year.

"The reduction in the number of job stoppages and strikes is primarily due to the renovation in state management. Many businesses are aware of social responsibility in taking care of workers' lives in accordance with Vietnam’s law,” Hieu said.

He stressed that the VGCL will be more active in researching, amending and supplementing the Labor Code of 2012, focusing on contents related to labor disputes and strikes to solve labor dispute.