7 - Industrial relations

Abstract

This chapter provides an overview of the Industrial Relations (IR) system in the centrally planned economy and the contemporary economy. It outlines the structure and roles of trade unions, looking at their nature and position in relation to management at the grassroots level. It is concluded that there are little differences in union activities at Multinational Companies (MNCs) and State-Owned Enterprises (SOEs). In both forms of economic organizations, burdened by many constraints from within as well as from the outside, at the work place level, the trade unions are highly dependent on the management and play a supporting role rather than an adversarial role to management. The chapter analyzes the challenges they face in transforming their organization and accomplishing the tasks that government assigns them. It presents the constraints of trade unions’ activities, in terms of adopting a new structure, financial and time budgets, membership, and leadership. It also examines trade union's roles and activities in the investigated State-Owned Enterprises and MNCs across six main functions defined by the Vietnamese labor and trade union legislation—namely, providing education, organizing social activities, managing the labor force, checking on management, solving conflict and protecting labor rights, and the management-trade union relationship.