Criteria of labor relations at enterprises in hanoi, vietnam

THAI NGUYEN UNIVERSITY
Socialist Republic of Vietnam





SOUTHERN LUZON STATE UNIVERSITY
Republic of the Philippines




KHUẤT THỊ THU HIỀN
(English Name: ROSE)

CRITERIA OF LABOR RELATIONS
AT ENTERPRISES IN HANOI, VIETNAM

DOCTORAL DISSERTATION

TNU-SLSU, 2013

i







THAI NGUYEN UNIVERSITY
Socialist Republic of Vietnam





SOUTHERN LUZON STATE UNIVERSITY
Republic of the Philippines



KHUẤT THỊ THU HIỀN
(English Name: ROSE)

CRITERIA OF LABOR RELATIONS
AT ENTERPRISES IN HANOI, VIETNAM
DOCTORAL DISSERTATION

Supervisor: Associate Professor. Dr. TRẦN CHÍ THIỆN
Thainguyen University of Economics and Business Administration
(TUEBA)


TNU-SLSU, 2013

i

ACKNOWLEDGEMENT

The researcher would like to express her sincere gratitude to Assoc. Prof. Dr.
Tran Chi Thien who has instructed her dedicatedly to complete this Dissertation.
The researcher would like to thank the lecturers of the University of Southern
Luzon, Thai Nguyen University, and staff of Dong Xuan Knitting Company for
helping her during the survey on labor relations.
Other thanks go to the University of Labor and Social Affairs where the author
has been working for years, her family and all her beloved friends who have shared,
encouraged and supported her unceasingly during her DBA program, hence made her
study feasible.
The Author



Khuat Thi Thu Hien

ii
COMMITMENT

The author hereby declares that this is her own research. The information
utilized in the Dissertation is trustful. The labor relation criteria has not been
available yet in Vietnam generally, in Hanoi, particularly. In 2012, The National
Assembly already passed the Labor Code. However, the Code is just a general
guideline which needs to wait for a respective Decree of the Central government, then
respective Circulars of Ministry of Labor, Invalids and Social Affairs to be more
specified in detail and applicable. However, in Vietnam this process takes a long
time, at least 3 years normally. A pioneer research can provide the involving policy
makers with suggestions, as the food for thought, on what the labor relation criteria
should be and what the way of the criteria application should be, is really in need.
The author strongly believes that the Dissertation is the first study in Vietnam to
construct the set of labor relation criteria, and therefore also the first study to
introduce the way to apply those criteria in the reality of an example enterprise.
Hence, the findings and conclusions of the Dissertation have not been published in
any other work yet!
The Author



Khuat Thi Thu Hien



iii
TABLE OF CONTENTS

ACKNOWLEDGEMENT i
COMMITMENT ii
LIST OF TABLES v
LIST OF FIGURES vi
ABSTRACT 01
.CHAPTER I: INTRODUCTION 02
1.1. BACKGROUND OF THE STUDY 02
1.2. STATEMENT OF THE PROBLEM 03
1.3. SIGNIFICANCE OF THE STUDY 04
1.4. SCOPE AND LIMITATION OF THE STUDY 04
1.5. DEFINITION OF TERMS 06
CHAPTER II: REVIEW OF RELATED LITERATUES AND STUDIES 09
2.1. REVIEW OF RELATED STUDIES 09
2.2. THEORETICAL FRAMEWORK 21
2.3. CONCEPTUAL FRAMEWORK 40
CHAPTER III: METHODOLOGY 41
3.1. STRATIFIED CLASSIFICATION METHOD FOR CLASSIFYING LABOR
REALTION CRITERIA 41
3.2. SECONDARY INFORMATION COLLECTION METHOD 43
3.3. PRIMARY INFORMATION COLLECTION METHOD 44
3.4. SATISFACTION RANKING METHOD 47
3.5. DISCRIPTIVE ANALYSIS METHOD 47
3.6. STATISTICAL TABLE METHOD 48
3.7. CHART ANF GRAPH METHOD 49
CHAPTER IV: CRITERIA OF LABOR RELATIONS AND THEIR
APPLICATION AT ENTERPRISES IN HANOI, VIETNAM 50
4.1. CRITERIA OF LABOR RELATIONS 50
4.2. PROCEDURE TO APPLY LABOR RELATION CRITERIA AT AN
ENTERPRISE IN ORDER TO EVALUATE THE HARMONY OF THE WORKING
ENVIRONMENT 68

CHAPTER V: A CASE STUDY: AN EXAMPLE OF APPLICATION OF LABOR
RELATION CRITERIA AT A SPECIFIC ENTERPRISE - DONG XUAN
KNITTING COMPANY 72
5.1. OVERVIEW OF THE EXAMPLE ENTERPRISE 72
5.2. SURVEY RESULTS 78

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5.3. SUMMARY OF THE LABOR RELATION EVALUATION USING THE
PROPOSED CRITERIA 102
CHAPTER VI: CONCLUSIONS AND RECOMMENDATIONS 106
6.1. CONCLUSIONS 106
6.2. RECOMMENDATIONS 108
REFERENCES 112
APPENDIX 116
APPENDIX A. REQUEST LETTER TO CONDUCT THE SURVEY (TO
RESPONDENTS) 116
APPENDIX B. QUESTIONAIRRE 117
APPENDIX C. CURRICULUM VITAE 126


v
LIST OF TABLES

Table 2.1: Strategy on labour relations and corresponding policies 20
Table 3.1: The results of the stratified classification of the labor relation criteria 43
Table 4.1: The criteria of signing employment contracts 50
Table 4.2: The criteria of Termination of employment contract 52
Table 4.3: The criteria of Working time, rest time 53
Table 4.4: The criteria of working environment 57
Table 4.5: The criteria of the position of the employee at work 61

Table 4.6: The criteria of wages of workers 64
Table 4.7: The criteria of Method of payment 66
Table 5.1: Employees Distribution in Dong Xuan Knitting Company 74
Table 5.2: Number of sampled employees by work departments 76
Table 5.3: Number of sampled employees by education attainment 77
Table 5.4: Number of sampled employees by gender 77
Table 5.5: Summary of sample allocation by work departments, education attainment
and gender 78
Table 5.6: Board of Directors of DOMIMEX 81
Table 5.7: Implementation of criteria on labor contract at DOXIMEX 82
Table 5.8: Implementation of contract termination criteria at DOXIMEX 85
Table 5.9: Implementation of criteria on working hours and rest at DOXIMEX 88
Table 5.10: Implementation of criteria on working environment at DOXIMEX 92
Table 5.11: Implementation of criteria on labor positions at DOXIMEX 95
Table 5.12: Implementation of criteria on wages at DOXIMEX 98
Table 5.13: Implementation of criteria on method of payment at DOXIMEX 101
Table 5.14: Score of Criteria Groups at DOXIMEX 102

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LIST OF FIGURES

Figure 2.1: Dunlop‟s classical labour model 18
Figure 2.2: Kochan‟s Strategy selection model in labour relations 19
Figure 2.3: The interaction in Petit‟s labour relations system 21
Figure 2.4: Labor relations, the interference of the relations 23
Figure 2.5: Subjects of the labor relations 28
Figure 2.6: Scope and contents of labour relations at enterprises 40
Figure 4.1: Procedure to apply labor relation criteria to evaluate the 68
Figure 5.1: Age structure of the surveyed employees 79

Figure 5.2: Working experience structure of the surveyed employees 79
Figure 5.3: Number of criteria by satisfaction level at DOXIMEX 104
Figure 5.4: Ratio of employees‟ satisfaction of 64 labor relations criteria in Dong
Xuan Knitting Company 105
Figure 6.1: Evaluation, synthesization of the result of labor relations evaluation in
Vietnam 109


1
ABSTRACT
The government and enterprises always expect to build harmonious and stable
labor relations to increase productivity and to create employee‟s commitment to
business. However, so far, in Vietnam in general and Hanoi in particular, there has
been no criteria system available as a basis for evaluating the labor relations at
enterprises since it takes a long time (many years) for a Decree of the Government,
and then Circulars of Ministry of Labor, Invalids and Social Affairs to be launched
that concretize The National Assembly‟s Labor Code 2012.
The development of criteria system for evaluating the labor relations at
enterprises is very necessary. It will serve as an important basis on which both the
employers and employees can evaluate the level of the employees‟ satisfaction, hence
they can make better employment planning which enhance both the benefits of the
employees and the efficiency of the business.
Based on studies of international labor standards and related legal document of
Vietnam, this Dissertation composes and proposes a set of criteria to evaluate the
labor relations at enterprises in Vietnam. Then, the Dissertation applies the set of
proposed criteria to evaluate the labor relations at a specified enterprise in Hanoi, as
an example case study of the way to apply the criteria in the reality of an enterprise.
Dong Xuan Knitting Company (DOXIMEX). is chosen for this purpose.
Finally, recommendations are suggested to the State, the employer, the trade
union and the empoyees to introduce and implement the Criteria of Labor Relations in

the reality of a specific enterprise. The important implication of the criteria
application is to evaluate the existing labor relations at the enterprise, and to find out
solutions to improve the labor relations to ensure the rights and responsibilities of the
relating parties so as to enhance the working environment at the company.

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.CHAPTER I
INTRODUCTION

1.1. BACKGROUND OF THE STUDY
Labor relations at enterprises are the factor that largely influences business
operation, economic development, social safety, working environment, and
motivation for employees to enhance their labor productivity.
Since Vietnam has been shifting to market economy, labor relations have had
many significant changes. Employees have right to seek a job freely and employers
have right to choose, recruit workers to suit business requirements. Both the parties
have their own rights and interests in compliance with the provisions of the Labor
Code through labor contracts, collective labor agreements and other arrangements.
The Labor Code and other laws have played an important role in the above
mentioned changes. However, the labor relations in some regions are sometimes not
as expected as it should be. The phenomenon of contravening labor discipline which
does not guarantee the legitimate rights and interests of workers still occurs and
sometimes is very disturbing. Labor disputes, strikes adversely affect the labor
market. There are many reasons for these problems, but mostly they are the sense of
law respect not highly enough and lacks of full cooperation in goodwill from the both
sides. Only when a conflict has broken out in a labor dispute or strike, drawing
intervention of the authority, the labor relations are then put back in peace again.
Experiences of some cases prove that, if both the parties took the initiative of good
will to meet and have dialogues, negotiate each other in order to try to resolve the
dispute soon, the strike would be much likely not to happen and potential damages

would be smartly avoided. Labor disputes and strikes are a natural phenomenon of

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employment relationship which occurs as the consequence of the adaptation of the
labor relations in a new context of such a huge range of new requirements for the
development of the country. Thus, responses to this issue, the whole society,
including the legislature, the government, concerned organizations and individuals,
are called for. Labor disputes in Vietnam often arise from the workers‟ claims for
higher wages, better working conditions while employers want to seek profits, reduce
costs and increase competition capability. In almost cases, both the sides have their
own reasons. Therefore, the problem is how to reconcile these conflicts in a
satisfactory way for them to be able to continue the work. This is a big challenge for
the employment relationship in Vietnam.
The government and enterprises always expect to build harmonious and stable
labor relations to increase productivity and create employee‟s commitment with
business. However, so far, in Vietnam in general and Hanoi in particular, there has
been no criteria system served as a basis for evaluate labor relations at enterprises.
Thus, the theme of "Criteria of Labor Relations at Enterprises in Hanoi,
Vietnam” is chosen to study.
1.2. STATEMENT OF THE PROBLEM
To implement this study, the author answered the following questions:
- Which criteria can be used to evaluate labor relation at enterprises?
- What should be the procedure to apply the labor relation criteria in the reality
of an enterprises
- How are the criteria implemented in a specific enterprise, Dong Xuan
Knitting Company, for example?

4
- What are solutions proposed to the State, the employer, the Trade Union, and
the employeess that are relating to the introduction and the implementation of the

Labor Relations Criteria in the reality?
1.3. SIGNIFICANCE OF THE STUDY
This study tries to construct a set of criteria to evaluate the labor relations at
enterprises that can be used to evaluate the level of employees‟ satisfaction of the
labor relation at enterprises. Based on that evaluation results, stakeholders would
consider, adjust, modify the existing labor relations to have better labor relations. It
also helps improve government policies and measures, mechanism relating to labor
relations.
After the formulation of the labor relation criteria, the Dissertation introduce a
procedure to apply the criteria in the reality of enterprises.
Then, the Dissertation introduce a case study as an example of how to
specifically apply the criteria in reality of a specific enterprise- Dong Xuan Knitting
Company (DOXIMEX).
1.4. SCOPE AND LIMITATION OF THE STUDY
- The related literatures on labor relations at enterprises in Hanoi in particular,
and in Vietnam in general are reviewed.
- The set of labor relation criteria and the procedure for its application are
formulated for all types of enterprises in Hanoi, Vietnam,
- An example application of the criteria in the reality of an enterprise - Dong
Xuan Knitting Company is conducted to introduce the way of criteria application.
Why are Hanoi, textile & garment industry and DOXIMEX chosen?
Hanoi is the capital of the Socialist Republic of Vietnam which is located in
the center of North Delta. Its location has many advantages, being the focal point of

5
the roads, waterways, rails and airs which connect to provinces and locality in
Vietnam and other countries. Thanks to being the national political center, Hanoi has
its stably political platform, an opened and flexibly foreign economic co-operation
policies and guaranteed political security and social order. Hanoi is a place where has
a geographically advantageous position, being the center of economic transactions

and an importantly international exchange center. Hanoi is also a city which gathers
plentiful human resources and intellectuals with high-qualified scientists and
management executives of the country. With these advantages, Hanoi is a place with a
large business community. Employment relationship in enterprises in Hanoi is diverse
and complex. The construction of harmonious, stable and advanced employment
relationship in business in Hanoi helps minimize labor disputes, strikes and has a
tremendous significance to stabilize and develop society and enterprises, diminish
conflicts, ensure the employees‟ rights and benefits. It is considered as an important
target for the employers, the employees in Hanoi to implement good labor relations in
both short term and long term.
- An enterprise chosen to be an empirical example of how to apply the
formulated labor relation criteria in the reality of a specific company is the Dong
Xuan Knitting Company (DOXIMEX) – a large in textile company .
Textile industry is a key export industry, labor–intensive industry of Vietnam
Traditionally, textile industry is still considered an area which has lots of volatility in
labor relations because of low wages and longer time of work. In many cases,
companies had the goods orders but could not produce and sell the products in time
because of lacking in labor forces. The potential risk of employment relationship is
unavoidable with a branch requiring a lot of workers and always having such
volatility in labors. Therefore, the biggest challenge is to build harmonious

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employment relationships. An application of a good labor relation criteria will help to
measure how harmonious the labor relations at the company are? Which specific labor
relation should be improved to satisfy the need of employees for a better working
environment?
1.5. DEFINITION OF TERMS
In this study, the most frequently used terms are criterion, criteria, collective
labor arrangement, enterprise, labor contract, labor relations, negotiation, employee,
employer.

- Criterion
Criterion is the standard of judgment or criticism, a rule or a principle used to
test or to evaluate an object, including requirements for the quality, level, efficiency,
capacity, compliance with rules and regulations, the final results and the sustainability
of these results.
- Enterprise
"Enterprise means an economic organization having its own name, having
assets and a stable transaction office, and having business registration in accordance
with law for the purpose of conducting business operations."
(Article 4, Vietnam Enterprise Code 2005)
- Labor relations
"Labor relations is a broad field encompassing all the myriad interchanges
between employers and employees. While labor relations is most often used to discuss
this exchange as it pertains to unionized employees, it may also refer to non-union
employees as well. Labor relations are dictated in a large part by the government of a
nation and the various regulations it provides to industry regarding the treatment of
employees."

7
(
"Labour relationship is social relationship rise in processing of leasing, using
labour, paying salary between employees and employers."
(Article 3, Vietnam Labour Code 2012)
- Employee
"An employee is a person who works in the service of another person under an
express or implied contract of hire, under which the employer has the right to control
the details of work performance (Black's Law Dictionary).
An employee is hired for a specific job or to provide labor and who works in
the service of someone else (the employer). The IRS classifies a worker as an
employee as follows:

In general, anyone who performs services for an organization is an employee
if the organization can control what will be done and how it will be done.
The control question is used to determine whether a worker is an employee or
an independent contractor.
The factors designating someone as an employee include:
 A specific wage or salary
 An implied or written contract
 Control of the person's work by the employer"
(
“Employees mean persons whom are at least 15 years of age, having capacity
to labor and work under a labor contract, getting paid and subject to their employers‟
monitoring and management."
(Article 3, Vietnam Labour Code 2012)
- Employer

8
"A legal entity that controls and directs a servant or worker under an express
or implied contract of employment and pays (or is obligated to pay) him or her salary
or wages in compensation".
(Read more:
/>l#ixzz25YXwJS5S)
“Employers means enterprises, agencies, organizations, co-operatives,
households, individuals hiring, using labor under labor contracts; in case of
individuals, such persons must be from full 18 years old and have full civil act
capacity."
(Article 3, Vietnam Labour Code 2012)

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CHAPTER II
REVIEW OF RELATED LITERATUES AND STUDIES

2.1. REVIEW OF RELATED STUDIES
2.1.1. Vietnam General Confederation of Labour and Vietnam Labour
Relations Project ILO, "Trade Unions and labour relations in market economy
situation in Vietnam", 2010, Labour Publisher
This book states two main research outcomes: Vietnam Trade Unions - the
reality of organizing, practicing and revamping Law on Trade Unions; The foundation
of basis trade unions and the relationship of higher - level trade unions and basis trade
unions - reality, challenge and resolution.
According with the author of the book, labour relations remain in trouble,
many strikes take place in Vietnam. This practice shows a lot of troubles in
organisation structure, direction as well as trade union‟s capacity in representative and
collective bargaining. There have a number of factors impact clear labour relations,
but in case of non - capacity of collective bargaining with the employers, there will
definitely have many strikes. Therefore, that damages national benefits.
The group of authors also have given anticipation about 3 developing trends of
labour relations in Vietnam, include: The role of labour relations parties, particularly,
the more importance of trade unions; The nature of labour relations will change
accordance with market mechanism; all of the issues, such as :interests conflict
between the employer and the employee, labour dispute as well as strike are in
trouble.



10
2.1.2. Nguyen Tiep, “Labour relations curriculum”, 2011, Social Labour
Publisher
Two fundamental items written in that book are: the basis issues of labour
relations and labour relations in Vietnam. According to Nguyen Tiep, labour relations
are the system of relations between individuals or representative organisation of

labours or representative organisation of labours with other objects as well as state.
Those relations take place around process of hiring employment (the employee and
the employer) to ensure harmonious and stabe benefits of the parties.
According to Nguyen Tiep, there have 3 groups of labour relations objects,
include: The employees and the representative organisation for their interests; the
employers and the representative organisation for their interests;and the State. In these
cases, the employer and the employee have bargained to each other to achieve the
goal of each party, while the State establishes legal system and application methods
for effective law ( it means that the two objects – the employer and the employee have
respected to law). In process of state legal implement, the employer and the employee
can discover the nonsense of law. They can make reflections on those things, thus
help state reconsiders and adjust.
Evaluating of labour relations in Vietnam, Nguyen Tiep assitsts on
completing legal framework of labour relations to go with market economy and
international integration. The mechanisms of representative labour relations parties
are incomplete in Vietnam. The system of making reference, opinions, negotiation as
well as making - decision has been in trouble. Field level and national level Collective
labour agreement are yet to practice. Enterprise collective agreement has not high
quality, reflect the formal feature. The employees‟s style is yet to set up on large
scale. The employee‟s and the employers‟s awareness of labour law is not high. The

11
negotiation skill of the parties is limited… All the above problems has sided - effect
to the development of sound and stable of labour relations in enterprises.
2.1.3. Phan Thanh Khoi, “Political awareness of workers in several
enterprises in Hanoi now”, 2003, National Politics Publisher
In this book, Phan Thanh Khoi has evaluated workers‟s political awareness in
several enterprises in Hanoi. From Khoi point of view, state owned enterprises have
trade unions, while foreign investing enterprises are yet to have that in Hanoi.
Worker‟s awareness is limited. To enhance workers‟ political awareness, several

methods need to do: resolving job, increasing income, training law and the
important thing to do is connecting manpower in enterprises to build and consolidate
workers‟political awareness. Thank to that, labour relations in enterprises will be
better.
2.1.4. Pham Quy Tho, “Labour market in Vietnam - Reality and
development resolution”, 2008, Labour and Social Affairs Publisher
According to the author‟s opinion, labour market is one of 5 fundamental
markets in Vietnam that requires studying. Thus, the author has analysed the
foundation and development of labour relations in Vietnam, assessed good side and
sided-effect of labour relations development process to social economic development
in Vietnam. Then, Pham Quy Tho gives propose for direction and development
resolution labour market in years to come.
Pham Quy Tho contends that, labour relations (the employees and the
employers) are one of the key issues in the foundation and the development of labour
market process in our nation. Thus, developing labour market needs to be based on
harmony of the employees and the employers‟ benefits as well as limiting
unemployment, ensuring social welfare step by step.

12
2.1.5. Ministry of Training and Education, “Some issues of labour
relations in private enterprises and an enterprise with foreign owed capital during
Vietnam transition economy period”, 2004, Education Publisher
This book regards to labour relations in two kinds of enterprises: private
enterprises and an enterprise with foreign owned capital. The authors of the book
study about the above enterprises‟ labour relations during Vietnam economy shift
period. In association with the authors, owing to the difference between the owner and
investment sources that leads to the labour relations of private enterprise and an
enterprise with foreign owned capital are differente. The reason is that there are the
differences of cultures, languages of the labour relations‟ parties. Simultaneously,
high working level as well as working time also lead to labour disputes.

2.1.6. Trade Unions and worker department, “ Reporting surveys on
reality of an enterprise with foreign owned capital‟s labour relations”, 2007
The report gives survey on labour relations in 60 FDI enterprises in Ho Chi
Minh city, Dong Nai, Binh Duong, Ba Ria - Vung Tau, Hanoi, Vinh Phuc, Bac Ninh,
Hai Duong.
The authors of report regard that the most weakness in labour relations conflict
shows it is unstable, unsympathetic towards with enterprises in trouble.
Those authors target the aim for building enterprises‟ labour relations is
establishing progressive, harmonious, stable labour relations as well as ensuring
benefits of the employers, enterprises and society.
2.1.7. Do Quynh Chi, “The role of the employers in renewal process of
labour relations system - reality, challenges and chances”, 2010
According to the employers‟perspectives on labour relations, Do Quynh Chi
gives main issues on the general in the research. She believes that mechanism for

13
labour relations at enterprises are ineffective in Vietnam. The employers do not care
and take part in process of labour relations in Vietnam. From Chi‟s view point, it is
necessary to have new model of labour relations in Vietnam. This model need to be
build based on old foundation and derived from basis experiment in enterprises and
locals. Therefore, Do Quynh Chi gives some of ways to do experiments. She also
recommend that, those experiments need to study, analyse and put in policy talks due
to it is a piece of huge parts which set up new labour relations in the future.
2.1.8. Nguyen Van Binh, “Enhancing and ensuring indipendance,
representative of trade unions to join process of labour relations effectively”, 2010
In association with Nguyen Van Binh, the harmonious and stable development
of labour relations depend on many factors. However, in his report, he does not refer
to all factors but issues on labour relations legal frame, particular in trade unions rules
in labour relations.
From the above report, Nguyen Van Binh discussed issues on organizing trade

unions, particular in: how the law can help trade unions become the real
representative organization for the employees; from that, trade unions take part in
process of labour relations really and effectively; therefore, taking part in building
harmonious, stable, progressive labour relations.
2.1.9. VCCI, "Labour issues from the employers' perspective, Survey on
labour in textile - garment industry in 2009"
This research shows textile - garment is one of the most labour relations
strongest developing fields in recent years. Owing to labour interchange, there are a
rising trend of labour disputes, unprompted strikes. The state has given several
solutions to control labour relations, such as encouraging bargaining and signing
collective labour agreement at enterprises as well as branches‟ level, enhancing

14
negotiation between the employers and the employees at the enterprises. However,
how the labour relations sound or not depend on each enterprise‟s effort.
The authors of this research analyse results of surveys on 4 aspects in
enterprises‟ labour relations: collective labour agreement, mechanism for dialogue,
resolution to appeal, strikes and labour disputes. The group have shown the
connection with those 4 aspects to each other and labour relations situation at
enterprises.
2.1.10. Michael Salamon, "Industrial Relations - Theory and practice", 4th
Edition/ Pretice Hall
In this book, the author contend that labour relations embrace a series of
phenomena, the inside and outside at working place, referring to confirmation and
adjusting employment relationship.
According to Micheal Salamon, labour relations is changeable and
complicated social activity. Labour relations is done by a diverse structure of
relationship and impact (individuals and collectivity) inside and outside of
organisation, directly target to rule on employment relationship.
He also recommends that it is necessary to respect labour relations in an

organisation. This relationship ought to consider and understand in changeable and
wider social, politics, economy situation. The developing employment relationship
currently need attach to commercial and economics globalism.
2.1.11. Chang - Hee Lee and Simon Clarke, “ Strikes and labour relations
in Vietnam”, 2011
In this discussion, the authors reconsider strike adjusting system in total labour
relatons situation. From that, they confirm policies can help tri-parties building new
legal frame for strikes.

15
There are 4 main items were referred to, including: kinds of strikes and the
reason for strikes, the nature of strikes in Vietnam; Law on srikes; forms of trade
unions labour representative; some issues on policies for creating suitable
environment aiming for stop labour disputes and building sound labour relations in
enterprises.
2.1.12. John W. Budd, University of Minnesota, "Labor Relations: Striking
a Balance", 2008, McGraw-Hill Irwin Publisher.
This book is structured around four parts.
Part I provides a framework for thinking about the major themes for studying
labor relations. The objectives of the employment relationship are presented in this
chapter. In Chapter 2, four different views of labor unions in the employment
relationship are presented from the perspectives of neoclassical economics, human
resource management, industrial relations, and critical (or radical or Marxist)
industrial relations. The industrial relations viewpoint shapes the existing U.S.
policies on collective bargaining, so a thorough understanding of this school of
thought is essential, and this understanding is best achieved through contrasts with the
other three schools. Lastly, understanding labor relations requires understanding the
determinants of labor relations outcomes-why do workers unionize (or not)? Why do
firms invest in nonunion locations (or not)? Chapter 3 therefore explores the major
factors that determine labor relations outcomes, including ethics. These chapters

provide the foundation for the remainder of the book.
Part II focuses on the New Deal industrial relations system-today‟s U.S. labor
relations system. The important topics are this system‟s historical development
(Chapter 4), labor law (Chapter 5), the strategies, structures, and conflicting rights of
labor and management (Chapter 6), how unions are formed (Chapter 7), how contracts

16
are negotiated (Chapter 8), how bargaining disputes are resolved (Chapter 9), and how
grievances over the application of the contracts are resolved (Chapter 10). The
thorniest problems of labor relations are those in which efficiency, equity, and voice
conflict with each other. As described in Chapter 6, these conflicts are often clashes
between property rights and labor rights. Striking a balance between labor rights and
property rights is a major task of labor relations, and the processes described in Part II
are the existing U.S. institutional framework for trying to balance property rights and
labor rights. On a practical level, a thorough understanding of these processes is
necessary to be an effective management professional or labor advocate.
Part III focuses on three issues that are putting particular strain on the New
Deal industrial relations system in the 21st century: employee involvement,
workplace flexibility, and globalization. These three pressures are discussed in
Chapters 11 and 12. These are important issues for business, policy makers, and labor
unions and also reflect struggles with efficiency, equity, and voice and trying to strike
a balance between labor rights and property rights. Consequently, these issues are
critical for both policy and practice. The goals of Parts I–III are to develop a deep
understanding of the current state of U.S. labor relations-its goals, major processes,
and current pressures. But many individuals from nearly every viewpoint-pro-
business or pro-union, liberal or conservative, Republican or Democrat, academic or
practitioner-have called for reform of the existing U.S. labor relations system.
Thus, Part IV reflects on this current state of affairs and future options for
reform. Other countries wrestle with the same goal of balancing efficiency, equity,
and voice and Chapter 13 presents some major comparative examples of different

labor relations systems. In a global economy, it is important to understand how things
work in other countries to be a better manager or labor leader, but there are also

17
lessons for reflection and reform. Chapter 14 returns to the starting question: What
should labor relations do? What should labor relations seek to accomplish? And in
light of the material in Parts I-III, what reforms are needed-in union strategies,
corporate strategies, and labor law? This concluding chapter therefore integrates the
past lessons with directions for the future. As conditioned by both the external
environment (laws, economic trends, social norms, and the like) and individual
decision making (motivation, attitudes, ethics, and other influences), labor and
management strategies and structures are determined, and outcomes result. Important
outcomes include worker reactions to workplace injustice-including whether or not to
unionize, contract terms, strikes, grievances, firm performance, and employment
trends. The elements of this model are explored in greater detail in Chapter 3. The
goals, strategies, processes, and outcomes of the New Deal industrial relations system
are a product of a particular institutional environment which is the focus of Part II.
Part III analyzes two big changes in the environment and Part IV questions how the
environment can be structured to produce desired outcomes in the future. But it all
starts with the objectives of the employment relationship.
2.1.13. John Dunlop, "Industrial Relations Systems", 1958
Dunlop contend that labour relations are the system include 3 subjects:
management organizations, the employers and representative of state.
Those people and their organization exists in collaboration with the outside
environment (include: technology environment, labour environment, goods
environment, politics environment…)
Environment factors can direct and indirect affect to subjects.
In that environment, subjects can collaborate with each other, negotiate, and
use economical, political powers to identify rules and regulations.