Collective agreements. A comparative study of Swedish and Vietnamese labour law systems Thi ...

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Collective agreements. A comparative study of Swedish and Vietnamese labour law
systems
Thi Minh, Hoang
2011
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Citation for published version (APA):
Thi Minh, H. (2011). Collective agreements. A comparative study of Swedish and Vietnamese labour law
systems. [Doctoral Thesis (monograph), Department of Law]. The Faculty of Law, Lund University.
Total number of authors:
1
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LUND UNIVERSITY
PO Box 117
221 00 Lund
[phone]
UNIVERSITY OF LUND HANOI LAW UNIVERSITY

HOANG THI MINH

COLLECTIVE AGREEMENTS -
A COMPARATIVE STUDY OF SWEDISH AND
VIETNAMESE LABOUR LAW SYSTEMS

Supervisors:
- Prof. BIRGITTA NYSTROM
- Prof. DAO THI HANG

HANOI -2011
0
Acknowledgement
My study is the result of a process to which many people contributed.
First, I am greatly indebted to my Swedish supervisor, Prof. Birgitta Nystrom,
for her dedicated guidance, advice, and support. As her student since 2002, I have
constantly benefited from her expertise. I was so fortunate to have the opportunity of
learning from her not only legal knowledge, but also the way to work professionally.
This study would not have existed or completed if she had not given me her precious
guidance. I did not understand that collective agreements are so important to a labour
market until I started digging deeper in the subject. To help me develop my study and
reach the necessary understandings, she spent a great deal of time reading my
manuscript, commenting on and discussing its content. She made herself constantly
available to me, encouraged me so much and inspired me to work on my subject from
its beginnings to the final stages of the study.
I would also like to express my deepest gratitude to my Vietnamese supervisor,
Prof. Dao Thi Hang, whose suggestion and guidance contributed greatly to my work.
Being her colleague at Hanoi Law University, I could meet her regularly and discuss
various matters in the field of labour laws, receive her encouragement and helpful
information about our labour market. She gave me insightful comments. She was
always available for any discussion regarding my thesis and gave me her full support
in any activities related to the research, thus creating favourable conditions for me.
I would like to express my sincere gratitude to Prof. Christina Moell and Asst.
Prof. Bengt Lundell who always supervised and gave all the Vietnamese students
their wholehearted support and helped us handle any difficulties during the course of
our studies.
After seminars held to assess my progress towards the completion of this study,
I also received many thoughtful, objective and constructive comments, advice and
suggestions from members of the examination panel. I would like to specially thank
Asst. Prof. Bengt Lundell, Prof. Per Ole Traskman, Prof. Michael Bogdan, Dr.
Nguyen Kim Phung, Prof. Nguyen Viet Ty and Prof. Nguyen Huu Chi. Their opinions
helped very much in developing and improving my thesis.
I am indebted to many professors and colleagues in Lund University, Suffolk
University Law School, Max Planck Institute and Swedish National Mediation Office.
I am especially grateful to Prof. Reinhold Fahlbeck, Prof. Hans-Heinrich Vogel, Prof.
Holger Knudsen, Prof. Daeubler Wolfgang, Prof. Lars Goran Malmberg, Prof. Hans
Henrik Lidgard, Asst. Prof. Mulder Johann, Dr. Mia Ronnmar, Niklas Selberg and
Mr. Kurt Eriksson, for their kind support, instruction, helpful materials, valuable
advice, explanations of legislative systems and their encouragement. Also, I would
1
like to take this opportunity of sincerely thanking the librarians, assistants and staff
for providing me the most favorable study facilities and technical support.
Also, I am indebted to my colleagues in the Ha Noi Law University, especially
in the Labour Law Section who supported me by undertaking additional teaching
duties, providing me with the precious gift of time off to do the research. I would also
like to thank the institutions concerned including the Ministry of Labour - War
Invalids and Social Affairs, the ILO Office in Hanoi, the Vietnam General
Confederation of Labour, and the Vietnamese Supreme Court as well as the research
centers and businesses in Vietnam for providing relevant information and data for the
thesis. I would like to give my warmest thank to Prof. Pham Huu Nghi, Prof. Pham
Cong Tru, Dr. Luu Binh Nhuong, Dr. Do Ngan Binh and Mr. Nguyen Viet Thung,
Mr. Dao Van Thu for materials and interesting discussions or opinions regarding
specific issues relating to my study.
My gratitude and appreciation go to my dear friend, Harry Larsen Rice, for his
great help in my study of English and the search for materials. He made his help
available by way of explanations of Latin phrases, English idioms and special
expressions in documents that I was dealing with as well as translating short texts in
French/German when necessary. He also gave me encouragement and valuable advice
on how to handle difficulties during the research process.
I would like to thank the Sida, for financing my research as part of the project
"Strengthening of Legal Education in Vietnam". I owe my deep gratitude to the
Project Management Board and those who helped organize our studies and offered
adequate conditions enabling us to complete our research tasks. My special thanks
belong to Asst. Prof. Bengt Lundell, Dr. Nguyen Quoc Hoan, Dr. Nguyen Van Quang,
Ms. Cu Thuy Trang and Ms Nguyen Thu Thuy.
I am also grateful to Philip Horowitz, who helped me proof read the whole text
and suggested many corrections and improvements.
Finally, I wish to express my deepest gratitude to my parents and my son for
their unlimited support and love. I had most favourable conditions for work; I was
fully energized by having them beside me.
I would very much appreciate receiving any further constructive opinions and
comments on this study. I can be reached at [email protected].
Hanoi. December, 2010.
Minh Thi Hoang

2
Table of content
Abbreviations..........................................................................................7
Chapter 1: Introduction..........................................................................0
1.1. Background....................................................................................8
1.2. Previous researches....................................................................11
1.3. Research tasks, delimitation and definitions ...............................12
1.4. Methods and materials.................................................................15
1.5. Dissertation outline ......................................................................23
Chapter 2: Some basic issues on collective agreements................25
2.1. Concept of collective agreements................................................25
2.2. Interrelation between collective agreements and other legal
instruments regulating the labour market ...........................................28
2.2.1. Collective agreements and international labour law............................29
2.2.2. Collective agreements and national labour law....................................30
2.2.2.1. Collective agreements and individual labour relations law......................30
2.2.2.2. Collective agreements and collective labour relations law......................31
2.2.3. Collective agreements and individual contracts...................................32
2.2.4. Collective agreements and work rules...................................................36
2.2.5. Collective agreements and work agreements.......................................38
2.2.6. Collective agreements and company practices....................................41
2.3. Features of collective agreements...............................................43
2.4. Nature of collective agreements..................................................44
2.4.1. The "contract" nature..............................................................................44
2.4.2. The “legal norm” nature..........................................................................47
2.5. Role of collective agreements......................................................48
2.5.1. Implementing labour legislation.............................................................48
2.5.2. Balancing social partners' interests, stabilizing labour relations.......50
2.5.3. Creating equally competitive environment for enterprises..................53
2.5.4. Consolidating discipline at work and supporting production.............54
2.6. Forms of collective agreements...................................................55
2.6.1. Written form..............................................................................................55
2.6.2. Oral form...................................................................................................56
2.6.3. Tacit-consent form...................................................................................57
2.7. The content of collective agreements..........................................58
2.7.1. Employment security...............................................................................58
2.7.2. Working time and leave...........................................................................61
2.7.3. Wages and remuneration........................................................................62
2.7.4. Occupational safety and health..............................................................64
2.7.5. Social security and welfare.....................................................................65
2.7.6. Cooperation and communication between the trade union and the
management.......................................................................................................66
3
2.7.7. Resolution of conflicts............................................................................67
2.7.8. Clauses of Application scope and effect of collective agreement......67
2.7.9. General remarks.......................................................................................67
2.8. Legal effect of collective agreements..........................................74
2.8.1. Binding or not binding?..........................................................................74
2.8.2. Normative effect.......................................................................................76
2.8.3. Conflicting collective agreements..........................................................88
2.9. Duration of collective agreements ...............................................89
2.10. Classification of collective agreements......................................94
2.10.1. International collective agreements.....................................................94
2.10.1.1. Global collective agreements................................................................95
2.10.1.2. Regional collective agreements..........................................................104
2.10.2. National collective agreements..........................................................111
2.10.2.1. Intersectoral collective agreement......................................................112
2.10.2.2. Industry-wide collective agreements...................................................115
2.10.2.3. Company-level collective agreements ................................................118
2.11. Recognition of collective bargaining agents............................121
2.12. Conditions for collective bargaining and status of collective
agreement development in some major market economies.............126
Chapter 3. Collective agreement legislation-an overview..............135
3.1. International labour law..............................................................135
3.1.1. Primary issues of international labour law..........................................135
3.1.1.1. Concept of international labour law.......................................................135
3.1.1.2. The rise of international labour law......................................................136
3.1.1.3. The purposes of international labour laws ............................................137
3.1.2. International framework for collective agreements............................138
3.1.2.1. Global instruments................................................................................139
3.1.2.2. Regional instruments............................................................................143
3.1.2.3. Main regulation of international labour law in the collective agreement
sector.................................................................................................................148
3.1.3. The influence of international labour law on the Swedish and
Vietnamese systems........................................................................................154
3.1.3.1. The influence of international labour law on the Swedish system.........154
3.1.3.2. The influence of international labour law on Vietnamese system .........158
3.2. Collective agreement legislation and collective agreement
development in Sweden and Vietnam..............................................161
3.2.1. Collective agreement legislation and the development of the collective
agreement in Sweden......................................................................................161
3.2.2. Collective agreement legislation and collective agreement
development in Vietnam..................................................................................172
Chapter 4: Current regulation on collective agreements in Sweden
and Vietnam ........................................................................................181
4.1. Conclusion of collective agreements.........................................181
4.1.1. Parties to collective agreements..........................................................181
4
4.1.1. 1. Employee side.....................................................................................181
4.1.1.1.1. Trade union in Sweden...............................................................................181
4.1.1.1.2. Trade union in Vietnam...............................................................................192
4.1.1.2. Employer side.......................................................................................201
4.1.1.2.1. The Swedish employer...............................................................................201
4.1.1.2.2. The Vietnamese employer..........................................................................204
4.1.2. Making a demand...................................................................................205
4.1.3. Negotiation.............................................................................................207
4.1.4. Consultation...........................................................................................217
4.1.5. Signing a collective agreement............................................................219
4.2. Registering collective agreements.............................................220
4.2.1. Purpose..................................................................................................220
4.2.2. Authorities responsible for collective agreement registration..........222
4.2.3. Procedure of registration......................................................................224
4.3. Implementation of collective agreements..................................225
4.4. Termination of collective agreements........................................231
4.5. Invalid collective agreements.....................................................234
4.5.1. Legal grounds for invalidating collective agreements.......................234
4.5.2. Authorities who can declare a collective agreement to be invalid....237
4.5.3. Legal consequences of invalid collective agreements.......................238
4.6. Disputes concerning collective agreements..............................240
4.6.1. Types of disputes..................................................................................241
4.6.2. Dispute settlement bodies....................................................................242
4.6.2.1. Dispute settlement bodies in Sweden...................................................242
4.6.2.2. Dispute settlement bodies in Vietnam...................................................246
4.6.3. Dispute settlement procedure..............................................................249
4.6.3.1. Dispute settlement procedure in Sweden .............................................249
4.6.3.2. Dispute settlement procedure in Vietnam.............................................254
4.7. Violations relating to collective agreements ..............................258
4.7.1. Concept of violations relating to collective agreements....................258
4.7.2. Forms of violations and treatment.......................................................258
Chapter 5. Promoting collective agreement development in Vietnam
..............................................................................................................265
5.1. Creating fundamental conditions for trade union development.266
5.2. Strengthening Vietnamese trade union system.........................272
5.2.1. The necessity of trade union innovation.............................................272
5.2.2. Specific actions needed to enhance the trade union’s role...............275
5.2.2.1. Strengthening the primary organization................................................275
5.2.2.1.1. Improving the personnel of the plant-level trade unions.........................276
5.2.2.1.2. Activating and tightening the links between trade unions at different
levels............................................................................................................................279
5.2.2.2. Clearly stating trade union rights and responsibilities in law and adding
new ones...........................................................................................................282
5.2.2.3. Protecting trade union officials from anti-union treatment.....................284
5.2.2.4. Strengthening trade union’s economic conditions.................................286
5
5.2.2.4.1. Rebalancing the trade union cost structure..............................................286
5.2.2.4.2. Enriching trade union funds.......................................................................288
5.2.2.4.3. The issue of payment for staff of primary unions.....................................293
5.3. Organizing both sides for collective bargaining.........................294
5.4. Improving the law relating to collective agreements..................294
5.4.1. Expanding bargaining actors on the employee side..........................295
5.4.2. Using strikes in supporting collective agreement conclusion..........297
5.4.3. Collective agreement registration, a mandatory procedure affirming
the legitimacy of the agreement before application.....................................299
5.4.4. Dealing with clauses which are incompatible with labour law
provisions but appear well suited to the specific situations of the
enterprises.......................................................................................................300
5.4.5. Duration of collective agreements.......................................................301
5.4.6. Applying collective agreements in the event of the reorganization of
an undertaking.................................................................................................302
5.4.7. Amendment of collective agreements .................................................302
5.4.8. Expiry of collective agreements...........................................................303
5.4.9. Sector-level collective agreements, a new development...................303
5.4.10. The trade union’s representative role in setting labour disputes....304
5.4.11. Industrial peace obligation and liability for the illegal strikes.........305
5.4.12. Completing the mechanism relating to the settlement of labour
dispute..............................................................................................................306
5.5. Reinforcing labour law implementation......................................308
5.6. Overcoming some other difficulties confronting collective
agreement development...................................................................310
5.6.1. Lack of awareness of collective agreements and trade unions.........311
5.6.2. Lack of knowledge of labour law..........................................................312
5.6.3. Lack of experiences and skills needed for collective bargaining......313
5.6.4. Lack of resources and competence.....................................................314
Related publications...........................................................................319
References and appendix..................................................................320

6
Abbreviations

Confederation of European Business (former UNICE)
BUSINESSEUROPE
European Centre of Enterprises with Public Participation
CEEP
European Community
EC
European Economic Community
EEC
Economic and Monetary Union
EMU
European Trade Union Confederation
ETUC
European Union
EU
European Foundation for the Improment of Living and Working Conditions
Eurofound
Foreign Direct Investment
FDI
Global Union Federation
GUF
International Confederation of Free Trade Union
ICFTU
International Framework Agreement
IFA
International Federation of Building and Wood Workers
IFBWW
International Labour Organization
ILO
Swedish Trade Union Confederation
LO
Ministry of Labour - War Invalids and Social Affairs
MOLISA
Organization for Economic Co-operation and Development
OECD
Swedish Confederation of Professional Association
SACO
Swedish Employers' Confederation
SAF
State-owned enterprises
SOEs
Swedish Confederation of Professional Employees
TCO
European Association of Craft, Small and Medium-sized Enterprises
UEAPME
United Kingdom
UK
United Nations
UN
Union of Industrial and Employer's Confederation of Europe
UNICE
United States
US
Vietnam Chamber of Commerce and Industry
VCCI
Vietnam Cooperative Union
VCI
Vietnam General Confederation of Labour
VGCL
World Trade Organization
WTO
7
Chapter 1: Introduction
1.1. Background
Labour relations are established by the choice of the two parties concerned.
When engaging in labour relations, the parties always start from the basis of their own
economic interests and if they do not benefit, no one will force them to be involved in
any particular employment relationship. However, employment relations are also
governed by the law of supply and demand for jobs or labour; and thus, concluding
individual labour contracts may put employees at a disadvantage, due to their weak
economic position. Nevertheless, there is an important way for the two parties to
balance their interests and encourage profitability: collective agreements. Once a
collective agreement is properly concluded, it will become an effective instrument for
regulating labour relations while it will also provide substantial support for the State’s
labour laws.
Since Vietnam shifted to market mechanisms, it has seen many changes in
labour relations, some tending towards more cooperation but others encouraging
severe competition. In order to develop a sound labour relations system, the labour
market needs to have collective agreements with intrinsic value which will genuinely
assist the parties in establishing their relationship.
Despite the fact that the Labour Code of the S.R. of Vietnam provides an entire
chapter giving a framework for collective agreements, the application of those
regulations at grassroots level remains very weak and formalistic. A recent report by
the General Confederation of Labour of Vietnam (VGCL) shows that, among
enterprises with grassroots trade unions, the ones that had collective agreements
accounted for 65.22 %. In particular, the rate in the state-owned sector was 96.33%; in
the foreign-invested sector: 57% and in the non-state sector: 59.21%.1 Notably,
enterprises with grassroots trade unions in the foreign and non-state sectors accounted

1 VGCL (2009), Resolution No. 01/NQ-DCT on “Reforming, improving quality of negotiation, conclusion and
implementation of collective labour agreements", dated 18 June 2009, p.2
Note: Unlike Sweden and many other countries where there are statistics showing the rate of workers and
employees covered by collective bargaining, in Vietnam, no similar statistics were reported. This are only the
data showing the rate of enterprises having collective agreements, compared with the entire number of existing
enterprises in the same sector.
8