1. 1 Industrial Relations in Vietnam – an introduction and some theoretical references Prof. Dr. Ingrid Artus presentation for the conference „Labour Market and Industrial Relations in Vietnam“, 9th october 2012, Nuremberg

2. 2 Some beginning remarks…. The following presentation is ■based mainly on secondary literature and only a few ‚first-hand‘ empirical evidences ■an essay to grasp the Vietnamese situation with Western concepts ■guided also by own research on industrial relations in (Eastern) Germany and France

3. 3 Theoretical concepts ■Modernization ■Transformation ■Institutionalist and cultural concepts ■Globalization and international division of labour

4. 4 1. Modernization Vietnam is –a ‚late-comer‘ –in the transition stage from an agrarian to an industrial society –on the way of rapid industrialization and urbanization => Resemblance of Vietnamese social conflicts to the European „first industrial revolution“

5. 5 1. Modernization ? The processes of the first, second and third industrial revolutions are taking place in Vietnam simultanously, not consecutively (as in Europe) => Very heterogenous labour force situations

6. 6 2. Transformation ■Vietnam’s economic system has undergone (and is still undergoing) a transformation from state-planned economy to market principles ■Dual - or even triadic economic structure: state firms privatized Vietnamese companies foreign-owned “global-market factories” (FDI) ■The institutional system, applying to both, state and private companies, in many regards is still oriented to the premises of a socialist planned economy.

7. 7 Transformation of Industrial relations(?): the VGCL ■The VGCL is a „mass organization“ and part of the political system ■Main Functions: –Encourage the production drive and maintain labour discipline –Provision of employee information and education –Organizing social and cultural activities/welfare –Some protective tasks for the employees ■Overall: Harmonizing interests and mediation – not direct interest representation of its members

8. 8 Weak employee representation at the company-level ■In many FDI-companies the legally binding establishment of a workplace union is avoided ■But even if there is a workplace union: –It often acts as „the long arm of the personal department“ –Workers see union representatives often as a part of management Reasons (?!?!) – or typical arguments: -No effective job guarantee for union activists -The workplace union representatives are paid by the company -Lack of training and qualification

9. 9 3. Institutionalist and cultural arguments Three points of cultural and institutional characteristics of the Vietnamese system of industrial relations shall be sharply outlined: ■The ideal of a harmonious society… ■…and however a long history of union struggles ■Formal rules versus informal “underground”

10. 10 4. Globalization and international division of labour ■FDIs go mainly into lowtech „extended workbenches“ ■Vietnam provides in the global value-creation chain mainly ‚raw‘ labour power ■Many Vietnamese companies are sub-sub-sub- contractors with very low profit margins and a marginal market position in the international value-chain ■Tolerance towards strikes in FDI companies may be a rational ‚national corporatist strategy‘ to enlarge the share of profit kept within the country

11. 11 Globalization of Labour unrest ■Silver (2003) argues from a ‚world historical perspective that product cycles and the extension of capitalist production is one of the most important reason for the strengthening of the working classes and increasing labour unrest ■The reactions of capital to the emerging conflicts are permanent delocalizations and geographical shifts of production => f.e. to Vietnam ■What we see in the Vietnamese factories is a ‚new round‘ in an old struggle – against the priority of individual profit in favor of a secure existence for all.

12. 12 Thank you for your attention!