Research labor relations in JSCs in Hanoi city

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Đánh giá Research labor relations in JSCs in Hanoi city
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Research labor relations JSCs in Hanoi city Quan hệ lao động Công ty cổ phần Địa bàn thành phố Hà Nội Kinh tế Việt Nam

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1 PREAMBLE 1. Urgency of topic research The reality has affirmed that human is an important and decisive source as well as a sustainable factor in all organizations; Where Labor Relations have a balance of interests, respect, support and cooperation between entities, this is called healthy relations. Up to 31/12/2013, there were about 147.000 enterprises and approx. 1.762.600 workers employed in kinds of enterprise [32, 33] in Hanoi. In the forthcoming time, the number of enterprises and workers will continue to increase, directly affecting the city’s labor relations; Joint Stock Company (JSC) is the most popular kind of enterprise in the market economy, the number of new establishments rises sharply; in particular, there were 9660 JSCs in the whole country in 2006. As of 2012, the number of JSCs were 129066[33], while enterprises located in Hanoi accounted for a significant proportion, in particular, up to 31/12/2013 there were about 37.217 JSCs in Hanoi. The management and use of human resources hasn’t been effective. Up to now, thousands of strikes and lockouts took place in Vietnam, particularly in Hanoi there were 110 lockouts from 2008 to 2013. 90% of which happened in industrial zones and export processing zones [18]. The Secretariat of the Central Party promulgated the Directives No. 22-CT/TW (dated 05/06/2008) on “Strengthen monitoring the formation of labor relations in friendly, stable and progressive environment”; Make such labor relations will contribute to create a healthy and stable environment for business and investment. Therefore, I choose the topic of “Research labor relations in JSCs in Hanoi city” as my doctoral thesis. 2. Purposes and task of research The thesis’s purposes of research consist of: Based on systemizing and developing several basic theoretical issues about labor relations in enterprises and evaluating the real status of labor relations in JSCs in Hanoi during the last time, the thesis suggest some synchronistic solutions to improve labor relations in JSCs in Hanoi in the forthcoming time. In order to achieve the research goals of the thesis above, the task of research consist of: (1)Systemize and develop several basic theoretical issues about labor relations in enterprises; (2) Research experience in managing labor relations of some countries in the world; (3) Evaluate the real status and factors affecting labor relations in JSCs in Hanoi; (4) Suggest some solutions to improve labor relations in JSCs in Hanoi in the forthcoming time. 2 3. Object and scope of research 3.1. Object of research The object of research is labor relations in JSCs in Hanoi. This is labor relations at enterprise level in the market economy. 3.2. Scope of research - For space: Subject of research is JSCs in Hanoi city, including those privatized from the State-owned enterprises (the State holds <51% capital) and a JSC is formed according to the Law on Enterprises. - For time: The figures included in the thesis to research and analyze, mainly collected from 2006 to 2013. - For research contents: The topic focuses on basic issues to form an enterpriselevel system of labor relations. 4. Model and method of research 4.1. Model of research In order to achieve the research goals of the thesis, the author generalized into the model of research. 4.2. Method of research The thesis applied the methods of dialectical materialism and historical materialism. Other methods include analysis, synthesis, comparison, sociological survey, expert interview. 5. Overview of research situation In practice, many internal and external works mentioned labor relations issue. In the world, there are several works including: “Reading in labor economics and labor relations” by Lloyd G.Reynold. Stanley Master, Colletta H Moser., Prentice Hall (1986) Publishing House. "Labor relations: Striking a balance” by John W.Budd (2005), etc... In particular, the author mentioned labor relations at the most general level. In Vietnam, there are many works about labor relations, such as: “Labor relations and labor dispute settlement in Vietnam”, Dr. Chang Hee Lee (2006); “Labor relations in international economic integration”, Dr. Le Thanh Ha (2008)... These authors mentioned innovation of labor relations, generalizing some basic issues and subjects of labor relations. Also, many doctoral theses studied this issue: Authors Nguyen Thi Minh Nhan (2010), Nguyen Duy Phuc (2011). Those thesis studied labor relations systematically. However, each thesis delved into a separate field and different subjects. 3 In general, many works about labor relations were conducted, concentrated at either a common aspect or various kinds of enterprises. However, neither work has methodically studied on labor relations in JSCs in Hanoi until now. Thus, the thesis found something new and didn’t coincide with already-published works. 6. Theoretical and practical significance of the research topic In theoretical aspect: Systemize and clarify several basic theoretical issues of enterprise-level labor relations. In practical aspect: The author analyzed, evaluated the real situation of labor relations in JSCs in Hanoi; indicated limitations in labor relations and underlying causes; put forth viewpoints and solutions for improving labor relations in JSCs in Hanoi by 2020. 7. Structure of the thesis Apart from the preamble, conclusion, annexes and references, the thesis includes three main chapters: Chapter 1: Basic theories of labor relations in JSCs; Chapter 2: Analysis of the situation of labor relations in JSCs in Hanoi in the recent period; Chapter 3: Solutions to complete labor relations in JSCs in Hanoi during the period until 2020. 4 Chapter 1: BASIC THEORIES OF LABOR RELATIONS IN JSCS 1.1. SOME BASIC DEFINITIONS 1.1.1. Definitions of Company, Joint Stock Company (JSC) 1.1.1.1. Definition of Company According to the Vietnamese Dictionary, Company is a business organization formed by members who contribute capital and share profits or losses corresponding to their equity [41, 285]. 1.1.1.2. Definition of Joint Stock Company (JSC) According to the Vietnamese Dictionary, JSC is a company incorporated by shareholders in the form of share purchase [37, 285]. Under Article 4, Clause 11 of Law on Enterprises (2005), a shareholder is a person who owns at least one share issued by JSC. JSC is a legal entity with limited liability, established and existed independently from the owners. 1.1.2. Definition of labor relations Labor relations are a broad and complicated category. For the thesis’s purposes, the author focuses on studying labor relations at enterprise level, so it is defined in this the thesis as follows: Enterprise-level labor relations are the relationship between employers and employees formed during their communication (or their representative organizations) in an enterprise. This interactive system usually takes place when the two parties cooperate to work together to obtain their personal benefits and the enterprise’s general objectives. Such relationship has been set up and operated within the framework of the State law. 1.1.3. Characteristics of labor relations in JSCs Labor relations in JSCs are characterized by those of enterprise-level labor relations. Including: be of economics and society; be of contradictions and unity; be of individual and collective; be of equality and inequality. However, labor relations in JSCs have different characteristics from those in other kinds of enterprises. First, labor relations in JSCs are of economics more than of society; Second, JSCs are considerably dependent on subjects, especially employers. Representative (or specifically) is the Executive Board; Third, labor relations in JSCs are of individual and collective, but imbued with personal stamp. 5 1.2.BASIC COMPONENTS OF LABOR RELATIONS IN ENTERPRISE 1.2.1. Subjects of labor relations There are three main components involved in this relationship (1) Employees and their representative organizations (union, trade union); (2) Employers (Boss) and their representative organizations (employer association...); (3) The State. 1.2.1.1. Employees and their representative organizations The employee refers to people involved in a labor contract that they are obliged to perform a certain job, equipped with physical means and received an amount as agreed in conformity with the laws. Union is an organization representing employees in terms of labor relations, with formal structure and clear objectives. The main function of the Union is to protect legal and legitimate representative of employees. 1.2.1.2. Employers and their representative organizations In general, the employer refers to the legal representative of an organization. An enterprise has the right to recruit, use, and dismiss employees. It is the subject who directly signs a labor contract with employees. Employer association (representing employers) was formed and operated by members’ contributed capital. It takes the responsibility to protect the rights of its members and help occupational training and have a dialogue with the State. 1.2.1.3. State In the labor relations system, the State plays a role as a partner, representing the interests of the country and the entire community. In the enterprise-level labor relations, the State’s role is to regulate the relationship between employers and employees. 1.2.2. Interactive mechanism of labor relations 1.2.2.1. Definition of interactive mechanism of labor relations Within the scope of this thesis, the author defined that: “Interactive mechanism of labor relations refers to all rules, regulations, procedures and processes regulating the movement and interaction between subjects, formulated scientifically and observed regularly to achieve the common goals of an enterprise” The interactive mechanism of labor relations is shown through bilateral and trilateral mechanisms. However, within the scope of the thesis, the author only focused on analyzing the bilateral mechanism of labor relations. 6 1.2.2.2. Bilateral mechanism ILO defines that: Bilateral mechanism is any process that cooperative arrangement between employers and employees (or their representative organizations) is directly formed, encouraged and approved [13]. In developing countries, the State usually intervenes deeper and much more on internal issues of an enterprise. Issues solved by bilateral mechanism in an enterprise are often working conditions and included in personnel policy. 1.2.3. Interactive forms of labor relations 1.2.3.1. Dialogue In an enterprise, dialogue refers to the process of discussion, negotiation and views exchange between subjects’ representatives in labor relations on mutual concerns about personnel policy. There are two ways of dialogue, including direct and indirect dialogues. They may be performed by three main activities: exchange of information, consultation/ advice and negotiation. ILO defines that negotiation is a process that two or more parties with mutual interests and conflicting ones together make a discussion to reach a joint agreement [13]. 1.2.3.2. Labor dispute The Vietnamese Labor Code amended in 2002 stipulates that: “Labor dispute is a dispute about rights, obligations and interests arising between parties in labor relations”[3]. In fact, all disagreements between subjects of labor relations aren’t considered a labor dispute. In an enterprise, labor dispute includes a personal disagreement between employers and employees and a collective one between labor collectives and employers. 1.3. FACTORS AFFECTING LABOR RELATIONS IN JSCS Factors affecting labor relations in JSCs are divided into 2 groups: objective and subjective factors. 1.3.1. Objective factors 1.3.1.1. Law on labor relations The consistency and transparency of the State’s laws and policies will strongly motivate healthy labor relations between parties in an enterprise. 7 1.3.1.2. Socio-cultural conditions Values, ethics, beliefs, traditions, customs, living habits of the community in each area are different. In an enterprise, there are many interactions between individuals and groups, creating a close and unified relationship or vice versa. 1.3.1.3. Natural conditions Natural conditions will affect the negotiation contents between employers and employees in JSCs: salaries, hazardous allowances, working conditions, break time, ... 1.3.1.4. Macroeconomic conditions Macroeconomic conditions may motivate or hinder developing economic components in response to solutions to use appropriate resources, including human resources, which have an indirect impact on a healthy environment for labor relations. 1.3.1.5. Labor market Labor market is “the land” causing an interaction on labor relations. If it develops incompletely, many conflicts will happen, creating unexpected events in labor relations of an enterprise. 1.3.1.6. Labor reconciliation, inspection, arbitration, court Good reconciliation shall promote mutual understanding in labor relations; effective arbitration shall determine “faults” of parties objectively and fairly, any dispute shall be settled quickly; strict inspection shall prevent law violations; Effective court shall reduce large-scale labor disputes. 1.3.2. Subjective factors 1.3.2.1. Personnel policy Enterprise-level labor relations depend on the level to meet the requirements of employees, expressed through personnel policy. 1.3.2.2. Technological level Technology level affects labor organization, skill requirements of employees, salary regime of companies. This is an important content in which both employers and employees are interested. 1.3.2.3. Business culture Business culture includes the whole cultural values built during existence and development, governing emotion, way of thinking and behaviors of all members in an enterprise. It also decides the survival of an enterprise, contributing to create harmonious labor relations. 1.3.2.4. Scale of enterprise Scale of enterprise affects the personnel policy and business culture and labor relations. 8 1.3.2.5. Scope of business Scope of business affects the agreements between subjects in labor relations. 1.3.2.6 Awareness of subjects in labor relations The awareness of the State is the basis of building legal corridor and developed policies; When both employees and employers who are aware of benefit values from harmonious labor relations will easily agreed upon, unanimity; When the awareness is of different levels, the prevention of benefit can hardly avoid. 1.4. EXPERIENCE IN BUILDING A SYSTEM OF LABOR RELATIONS OF SEVERAL COUNTRIES AND LEARNT LESSONS POSSIBLY APPLIED IN VIETNAM. 1.4.1. Experience of several countries in the world For this part, the author studied experience of some countries: US, China, Japan and some European countries. 1.4.2. Learnt lessons possibly applied in Vietnam Labor relations are always based on solid legal foundation. Labor relations have general principles, but each country must adjust to fit their conditions; the State must closely coordinate with representative organizations for employers and employees; both of them learnt experience of negotiation and signing for collective labor agreements, and advanced personnel policies from European countries and US; Japanese companies build and maintain the consistent working spirit, sense of discipline and absolute loyalty of employees; Chinese companies build a standard system of labor relations adjusted and improved regularly. 9 Chapter 2: ANALYSIS OF THE SITUATION OF LABOR RELATIONS IN JSCS IN HANOI 2.1. OVERVIEW OF HANOI AND DEVELOPMENT TREND OF ENTERPRISE TYPES 2.1.1. The development situation of Hanoi’s economy and society Hanoi is the capital- the center for the politics, society and economics of the whole country. Hanoi is the city with the largest labor scale of the country; with the favorable geographical position, high economic growth, high population, abundant human resources, Hanoi has great potential to be exploited effectively. 2.1.2. The development trend of the enterprise types in the past time 2.1.2.1. In term of the quantity In 2006, Ha Noi had 22856 enterprises, which had grown up to 84744 enterprises in 2013, inside JSCs without state capital have increased strongly from 6751 enterprises to 36656 enterprises. The opposite, State enterprises has decreased because of the state`s policy about equitisation and transfer of enterprise type. Although JSCs have increased fastly, speed of increasing is still slower than the type of limited company. While private enterprises had trend to decrease. This is a reasonable trending of market economy because founder determined clearly authorities and separation of obligations in personal asset management and legal assets. 2.1.2.2. Structure of JSCs in Hanoi The scope of activities of the joint stock company developed much diversified; the interdisciplinary business accounted for a large proportion. However, it focuses mainly on some sectors such as: Trade, hotel, restaurant and some other services… JSCs in Hanoi are mostly small and medium enterprises with average capital about 3,6 billion/enterprise; the number of labor is used few, average labor achieved only 23,2 person/enterprise; average productive value of JSCs in Hanoi is very low in comparison with common average productive value in enterprises. 2.1.2.3. In term of enterprise types JSC is considered as a enterprise with modern management model, which can provide the opportunity to expand their ability to attract investment from outside and unlimited development. The number of the joint stock stocks tends to increase every year. 10 2.2. ANALYSIS ON THE REAL SITUATION OF LABOR RELATION IN JSCs IN HANOI 2.2.1. Analysis on the labor relation subjects of JSCs in Hanoi 2.2.1.1. The employee and representative institutions in JSCs in Hanoi * The employee Hanoi currently has large labor force, approximately 4.4 million people of working age, the total number of employees working in the types of the enterprises up to 2013 was 1.7626 million employees, which work beyond the state accounted for 90% [32]. On the basis for an assessment of the employee by experts of the World Economic Forum (WEF) and by analyzing such statistics and investigating the sampling of the author, drawing some following comments: (l) Vietnamese employees has many good qualities, but lacks the minimum basic skills and professionalism, labor discipline and commitment is low; (2) the employees at JSCs in Ha Noi was assessed at the average level of the capacity; the employee’s legal knowledge is limited, so they have not been trained their career as well as education, education on labor law before entering the work; (3) The level of workmanship is limited, there has not had industrial working style and spirit of discipline; (4) the employee is excitable, uncaring and especially their thought is not associated with the enterprise; (5) They pay little attention to other personnel policies of the company. * Representative institution of the employees (local trade union) Currently, the city has 2,634 local trade unions in enterprises; particularly the private sector has 2,226 trade unions with 120,217 members. JSCs in Hanoi with trade unions, 100% of the trade unions have established freely and employees participating in this institution are voluntary. According to the actual results of the investigation of the author, the assessment of the employees on the local trade unions in their enterprises have been some remarks as follows: (l) The operation of trade unions is assessed at the average, JSCs established under the Law on Enterprise operates less. (2) The power of team work in the trade unions is not qualified and mainly work experience bladder habits; (3) The training and professional coach remains fragmented, not synchronous and effective; (4) Many companies established trade unions as a formality. The role of trade unions for the employees primarily reflected in the surface, no the depth, many important tasks are not focused. In core activities to establish and operate healthy labor relation in enterprise, the role of trade unions is relatively modest.
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