Extent of implementation of labor relations criteria of the textile garment industry in hanoi, vietnam

EXTENT OF IMPLEMENTATION OF LABOR RELATIONS CRITERIA OF THE TEXTILE - GARMENT INDUSTRY IN HANOI, VIETNAM _ A DISSERTATION Presented to the Faculty of the Graduate School Southern Luzon State University, Lucban, Quezon, Philippines in Collaboration with Thai Nguyen University, Socialist Republic of Vietnam _ In Partial Fulfillment of the Requirements for the Degree Doctor of Business Administration _ By KHUAT THI THU HIEN (ROSE) December 2013 APPROVAL SHEET The Dissertation of KHUAT THI THU HIEN entitled EXTENT OF IMPLEMENTATION OF LABOR RELATIONS CRITERIA OF THE TEXTILE - GARMENT INDUSTRY IN HANOI, VIETNAM Submitted in Partial Fulfilment of the Requirements for the Degree DOCTOR OF BUSINESS ADMINISTRATION A program offered by Southern Luzon State University, Republic of the Philippines in collaboration with Thai Nguyen University, Socialist Republic of Vietnam has been approved by Oral Examination Committee WALBERTO A MACARAAN, EdD Expert CONRADO L ABRAHAM, PhD Expert MELCHOR MELO O PLACINO, PhD Expert TRAN DAI NGHIA, PhD External Panel CECILIA N GASCON, PhD Chairman Endorsed by: Recommended by: JOANNA PAULA A ELLAGA, DBA Adviser APOLONIA A ESPINOSA, PhD Dean Accepted in Partial Fulfilment of the Requirements for the Degree Doctor of Business Administration _ Date WALBERTO A MACARAAN, EdD Vice President for Academic Affairs ii CERTIFICATE OF ORIGINALITY iii ACKNOWLEDGMENT Iwould like to express mysinceregratitudeandprofound appreciation to Professor Dr Tran Chi Thien, who has instructed me dedicatedly to complete this Dissertation I would like to thank the lecturers of the Southern Luzon State University in the Philippines and Thai Nguyen University in Vietnam, and staff of 10 textile - garment companies in Hanoi for helping her during the survey on labor relations Isincerelythank 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 KhuatThi Thu Hien iv DEDICATION I dedicate my dissertation to my family and my friends A special feeling of gratitude to my loving mother, who words of encouragement My husband and my children have never left my side and give special support to me Both of them have been my best cheerleaders I also dedicate this dissertation to my close friends who have supported me throughout the process I will always appreciate all they have done, especially Mr Ngo AnhCuong for helping me develop my technology skills, Ms.PhanThi Mai Huong, Ms Pham Kim Thoa and Ms Nguyen Minh Trang for the many hours of proofreading KTTH v TABLE OF CONTENTS PAGE TITLE PAGE ……………………………………………………………… i APPROVAL SHEET ……………………………………………………… ii CERTIFICATE OF ORIGINALITY ……………………………………… iii ACKNOWLEDGMENT ……………………………………………… … iv DEDICATION ……………………………………………………………… v TABLE OF CONTENTS ………………………………………………… vi LIST OF TABLES ………………………………………………………… viii LIST OF FIGURES ……………………………………………………… ix LIST OF APPENDICES ………………………………………………… x ABSTRACT ………………………………………………………………… xi CHAPTER I II III INTRODUCTION Introduction ………………………………………………… Background of the Study ………………………………… Objectives of the Study …………………………………… Significance of the Study ………………………………… Scope and Limitation of the Study ……………………… Definition of Terms ………………………………………… REVIEW OF LITERATURE AND STUDIES Related Literature and Studies………… …………….… Conceptual Framework …………………………………… 18 METHODOLOGY Locale of the Study ……………………………………… 39 Research Design …………………………………………… 39 Population, Sample Size and Sampling Technique…… 40 Research Instrument ……………………………………… 44 Data Gathering Procedure ………………………………… 45 Statistical Analysis ………………………………………… 46 vi IV RESULTS AND DISCUSSIONS ………………………… V SUMMARY OF FINDINGS, CONCLUSIONS AND 48 RECOMMENDATIONS Summary of Findings ……………………………………… 91 Conclusions ………………………………………………… 92 Recommendations ………………………………………… 94 REFERENCES …………………………………………………………… 98 APPENDICES …………………………………………………………… 101 CURRICULUM VITAE …………………………………………………… 115 vii LIST OF TABLES TABLE PAGE Strategy on Labor Relations and Corresponding Policies 16 The Results of the Stratified Classification of the Labor Relation Criteria……………………………………………… 40 Total Textile - Garment Companies in Hanoi and Number of Samples …………………………………………………… 40 Total Number of 10 Companies Employees Surveyed …… 41 Divide Employees Join in 10 Enterprises’ Survey ………… 43 The Criteria of Signing Employment Contracts …………… 49 viii LIST OF FIGURES FIGURE PAGE Dunlop’s Classical Labor Model……………………………… 15 Kochan’s Strategy Selection Model in Labor Relations …… 15 The Interaction in Petit’sLabor Relations System ………… 17 Labor Relations, the Interface of the Relations …………… 19 Subjects of the Labor Relations …………………………… 24 Main Items of Labor Relations in Enterprise ………………… 38 Procedure to Apply Labor Relation Criteria to Evaluate the Harmony of the Working Environment at an Enterprise …… 62 Enterprises Structure of the Surveyed ……………………… 66 Age Structure of the Surveyed Employees ………………… 75 10 Working Experience Structure of the Surveyed Employees 76 11 Evaluation, Synthetization of the Result of Labor Relations Evaluation in Vietnam ………………………………………… 95 ix LIST OF APPENDICES APPENDIX PAGE A.1 Letter to the Manager of Small and Medium Enterprises in Thai Nguyen Province 95 A.2 Survey of Financial Management Practices of SMEs in Thai Nguyen City 96 B.1 Regression 105 x 101 Appendix Request Letter to Conduct the Survey THAI NGUYEN UNIVERSITY Socialist Republic of Vietnam SOUTHERN LUZON STATE UNIVERSITY Republic of the Philippines Date: ………2013 Dear Sir / Madam, Subject: Doctor Dissertation Application My name is Khuat Thi Thu Hien I am doing a Dissertation of Doctor of Business Administration I am very much interested in doing research in your Company In this connection may I ask your kindly permission to use your Company as my subject for research? My proposed title is "Criteria of labor relation at enterprises in Ha Noi, Viet Nam" If it is approved, I will conduct a research survey in your Company to be able get feedback with regards to the procurement which is implementing in your Company Rest assured that all information gathered will be treated with utmost confidentially I am looking forward to having your permission as soon as possible Thanks very much for your time, please acknowledge at your earliest convenience Yours sincerely, Khuat Thi Thu Hien (Rose) 102 Appendix Questionnaire Questionnaire for Employees The information is provided is for scientific research: "Extent of Implementation of Labor Relations Criteria of the Textile - Garment Industry in Hanoi, Vietnam" We commit to keep privacy of all information Part General Information Name (optional): Gender: (1) Male (2) Female Age: (2) 30 - 45 (1) Under 30 (3) Over 45 Working experience: (1) Under year Qualification Level: (3) - 10 years (2) - years (4) Over 10 years (1) High school (3) College (2) Intermediate education (4) University Part Labor Relations in Enterprise Please provide satisfaction level about labor relations by answering questions in the attached table Choose one of each level by circling one option Scale Satisfaction level Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied 103 No Criteria Satisfaction level Circle one option Standard 1: Hiring employees 1.1 Signing employment contracts 1.1.1 May all workers within enterprises sign employment contracts? 1.1.2 Do the employment contracts specify the provisions and conditions of employment? 1.1.3 Are the rights of workers in the employment contract in accordance with labor law, collective labor agreements and works rules? 1.1.4 Do the employers comply with the trial period of work? 1.1.5 May the employee be moved to sign an unidentified period contract after times the employment contract period? 1.1.6 Have workers been announced before temporarily transferring workers to other work? 5 5 1.2 Termination of employment contract 1.2.1 1.2.2 1.2.3 Do the employers terminate the employment contracts with the employees because of the reasons under the law? Do the employers give the employee notice before terminating an employment contract? Do the employers consult with the union and notify the employee before the layoffs because of the changes in the business? 1.2.4 Have the employers complied with the provisions on subsidies (subsidies severance or unemployment benefits) upon the termination of a contract? 1.2.5 May the union officials get a contract extension until the end of the term union when the labor contract expires but the term union has not finished? 5 Standard 2: Using Employers 2.1 Time of work and rest 2.1.1 Do working hours comply with the provisions of labor law (maximum hours/day, 48 hours/week)? 104 No Criteria Satisfaction level Circle one option May the shift workers get break in the middle of their shifts at least 30 minutes (for day shift) and 45 minutes (for night shift)? 2.1.3 May workers have at least a day off each week,? 2.1.4 Do overtime workers comply with the provisions of labor law (not to exceed hours/day, 16 hours/week, 200 hours to 300 hours/year)? 2.1.5 May employees get the employer to consult before mobilizing overtime? 2.1.6 May the employee be compensated to ensure taking at least days off/month when have to work overtime at the weekends? 2.1.7 May the employee be allowed to take days off with at least 12 working days every year? 2.1.8 Have workers been entitled to take days off with fully pay when having some private business (themselves married, child marriage, dead parents, husband or wife dies, the dead)? 2.1.9 May women workers who are raising children under 12 months get 60 minutes break every day with full pay? 2.1.2 2.2 Work environment 2.2.1 Do employees receive training, guidance and information on workplace safety, labor hygiene? 2.2.2 Are employees provided with the necessary tools and personal protective clothing? 2.2.3 Is there the safety warning signs be posted properly in workplace? 2.2.4 May temperatures in the workplace be acceptable?(i.e.: not too cold or too hot) 2.2.5 Does workplace have ventilation? 2.2.6 Is noise at work acceptable? 2.2.7 Is workplace full of light? 2.2.8 Do Workers performing heavy or malicious work have free health check before assignment and examination every months? 105 No Criteria Satisfaction level Circle one option 2.2.9 Can workers in month pregnancy be transferred to lighter work or reduce by hour/day for working but still being paid enough salary? 2.2.10 Have employees be provided information on measures to prevent HIV/AIDS? 2.2.11 Have employer first aid training for employees? 2.2.12 Does workplace have enough toilets? 2.2.13 Is workplace full of hand washing facilities and soap? 2.2.14 Do employers provide employees enough drinking water? 2.2.15 Does workplace have fire detection system? 2.2.16 Is workplace enough equipment fighting fire? 2.2.17 Are there exits clearly marked and stuck with the guidance in workplace? 2.3 The position of the employee at work 2.3.1 Do employers respect the principle of non-discrimination (religious or political views) when recruiting employees, arranging work or paying salary? 2.3.2 Does the employer implement the principle of gender equality (i.e not discriminate male and female) in recruitment? 2.3.3 Are employees respected in marriage, maternity? (i.e not be failed because of marriage, pregnancy, maternity leave or child care within less than 12 months) 2.3.4 Do the employers hire workers with disabilities? 2.3.5 Do employers comply with the principle of nondiscrimination of HIV? (i.e does not require testing of HIV/AIDS as employers) 2.3.6 Have union representatives been in contact with employees at workplace? 2.3.7 Do workers freely join labor unions? 2.3.8 Does employer provide union working facilities and time for their job? 2.3.9 Do employees have the freedom to convene without the presence of managers? 106 No Criteria Satisfaction level Circle one option 5 2.3.10 With these problems which should be consulted by the union, employees have right to ask advises before making a decision? 2.3.11 Does the employer announce all employees about the content of the collective bargaining agreement? 2.3.12 Do the employers comply with the terms of the collective bargaining agreement? 2.3.13 Do workers hold their identification (such as passport, identity card)? Standard 3: Remuneration 3.1 Wages of workers 3.1.1 Are laborers paid at least 70% of the salary during their apprenticeship? 3.1.2 Are the apprenticed laborers paid at least extra 7% of the minimum wage in the business? 3.1.3 Are the employees in hazardous and dangerous work, particularly dangerous or hazardous work paid at least 5% higher than the salaries of positions with normal conditions? 3.1.4 When working overtime in the normal working days, is the employee paid at least 150% of normal salary? 3.1.5 When working overtime on weekends, is the employee paid at least 200% of normal salary? 3.1.6 When working overtime on holidays, Tet, are workers paid at least 300% of normal salary? 3.1.7 Does the employer pay at least equal to 130% of normal wages for hours at night? 3.1.8 Are workers paid for holidays? 3.1.9 Are employees paid for annual leave time (vacation)? 3.1.10 Are workers paid in time of severance due to the fault of the employer, or majeure causes? 3.1.11 Do women workers have days off (still full pay) for antenatal care during their pregnancy? 5 3.2 Method of payment 3.2.1 Are employees paid by cash or bank transfer? 107 No Criteria Satisfaction level Circle one option 3.2.2 Are workers paid at least time/month? 3.2.3 Are employees paid on time? Thanks for your response 108 Questionnaire for Employer The information is provided is for scientific research: "Extent of Implementation of Labor Relations Criteria of the Textile - Garment Industry in Hanoi, Vietnam" We commit to keep privacy of all information Part General Information Name of company: Types of ownership: (1) State company (2) Limited company (3) Joined stock company Part Labor Relations in Enterprise Please provide Implementation level of Labor Relations Criteria by answering questions in the attached table Choose one of each level by circling one option Scale Implementation 100% 75% 50% 25% 0% No Criteria Implementation level Circle one option 100% 75% 50% 25% 0% Standard 1: Hiring employees 1.1 Signing employment contracts 1.1.1 May all workers within enterprises sign employment contracts? 109 No Criteria Implementation level Circle one option 100% 75% 50% 25% 0% 1.1.2 Do the employment contracts specify the provisions and conditions of employment? 1.1.3 Are the rights of workers in the employment contract in accordance with labor law, collective labor agreements and works rules? 1.1.4 Do the employers comply with the trial period of work? 1.1.5 May the employee be moved to sign an unidentified period contract after times the employment contract period? 1.1.6 Have workers been announced before temporarily transferring workers to other work? 1.2.1 Do the employers terminate the employment contracts with the employees because of the reasons under the law? 1.2.2 Do the employers give the employee notice before terminating an employment contract? 1.2.3 Do the employers consult with the union and notify the employee before the layoffs because of the changes in the business? 1.2.4 Have the employers complied with the provisions on subsidies (subsidies severance or unemployment benefits) upon the termination of a contract? 1.2.5 May the union officials get a contract extension until the end of the term union when the labor contract expires but the term union has not finished? 1.2 Termination of employment contract Standard 2: Using Employers 2.1 Time of work and rest 2.1.1 Do working hours comply with the provisions of labor law (maximum hours/day, 48 hours/week)? 2.1.2 May the shift workers get break in the middle of their shifts at least 30 minutes (for day shift) and 45 minutes (for night shift)? 2.1.3 May workers have at least a day off each week? 110 No Criteria Implementation level Circle one option 100% 75% 50% 25% 0% 2.1.4 Do overtime workers comply with the provisions of labor law (not to exceed hours/day, 16 hours/week, 200 hours to 300 hours/year)? 2.1.5 May employees get the employer to consult before mobilizing overtime? 2.1.6 May the employee be compensated to ensure taking at least days off/month when have to work overtime at the weekends? 5 5 2.1.7 2.1.8 2.1.9 May the employee be allowed to take days off with at least 12 working days every year? Have workers been entitled to take days off with fully pay when having some private business (themselves married, child marriage, dead parents, husband or wife dies, the dead)? May women workers who are raising children under 12 months get 60 minutes break every day with full pay? 2.2 Work environment 2.2.1 Do employees receive training, guidance and information on workplace safety, labor hygiene? 2.2.2 Are employees provided with the necessary tools and personal protective clothing? 2.2.3 Is there the safety warning signs be posted properly in workplace? 2.2.4 May temperatures in the workplace be acceptable?(i.e.: not too cold or too hot) 2.2.5 Does workplace have ventilation? 2.2.6 Is noise at work acceptable? 2.2.7 Is workplace full of light? 2.2.8 Do Workers performing heavy or malicious work have free health check before assignment and examination every months? 2.2.9 Can workers in month pregnancy be transferred to lighter work or reduce by hour/day for working but still being paid enough salary? 111 No Criteria 100% 75% 50% 25% 0% Implementation level Circle one option 2.2.10 Have employees be provided information on measures to prevent HIV/AIDS? 2.2.11 Have employer first aid training for employees? 2.2.12 Does workplace have enough toilets? 2.2.13 Is workplace full of hand washing facilities and soap? 2.2.14 Do employers provide employees enough drinking water? 2.2.15 Does workplace have fire detection system? 2.2.16 Is workplace enough equipment fighting fire? 2.2.17 Are there exits clearly marked and stuck with the guidance in workplace? 2.3 The position of the employee at work 2.3.1 Do employers respect the principle of non-discrimination (religious or political views) when recruiting employees, arranging work or paying salary? 2.3.2 Does the employer implement the principle of gender equality (i.e not discriminate male and female) in recruitment? 2.3.3 Are employees respected in marriage, maternity? (i.e not be failed because of marriage, pregnancy, maternity leave or child care within less than 12 months) 2.3.4 Do the employers hire workers with disabilities? 2.3.5 Do employers comply with the principle of nondiscrimination of HIV? (i.e does not require testing of HIV/AIDS as employers) 2.3.6 Have union representatives been in contact with employees at workplace? 2.3.7 Do workers freely join labor unions? 2.3.8 Does employer provide union working facilities and time for their job? 2.3.9 Do employees have the freedom to convene without the presence of managers? 112 No Criteria Implementation level Circle one option 100% 75% 50% 25% 0% 2.3.10 With these problems which should be consulted by the union, employees have right to ask advises before making a decision? 2.3.11 Does the employer announce all employees about the content of the collective bargaining agreement? 2.3.12 Do the employers comply with the terms of the collective bargaining agreement? 2.3.13 Do workers hold their identification (such as passport, identity card)? Standard 3: Remuneration 3.1 Wages of workers 3.1.1 Are laborers paid at least 70% of the salary during their apprenticeship? 3.1.2 Are the apprenticed laborers paid at least extra 7% of the minimum wage in the business? 3.1.3 Are the employees in hazardous and dangerous work, particularly dangerous or hazardous work paid at least 5% higher than the salaries of positions with normal conditions? 3.1.4 When working overtime in the normal working days, is the employee paid at least 150% of normal salary? 3.1.5 When working overtime on weekends, is the employee paid at least 200% of normal salary? 3.1.6 When working overtime on holidays, Tet, are workers paid at least 300% of normal salary? 3.1.7 Does the employer pay at least equal to 130% of normal wages for hours at night? 3.1.8 Are workers paid for holidays? 3.1.9 Are employees paid for annual leave time (vacation)? 3.1.10 Are workers paid in time of severance due to the fault of the employer, or majeure causes? 3.1.11 Do women workers have days off (still full pay) for antenatal care during their pregnancy? 113 No Criteria Implementation level Circle one option 100% 75% 50% 25% 0% 3.2.1 Are employees paid by cash or bank transfer? 3.2.2 Are workers paid at least time/month? 3.2.3 Are employees paid on time? 3.2 Method of payment Thanks for your response 114 CURRICULUM VITAE I Personal Information Full name : KHUAT THI THU HIEN Gender Female : Birthdate : November, 23th 1975 Birthplace : Cuu Cao Commune, Chau Giang District, Hung Yen province, Viet Nam Civil status: Married Children Pham Minh Hoa, female, 13 years old : Pham Minh Hieu, male, years old Contact address: • Current residence: No.43 Tran Duy Hung street - Hanoi - Vietnam • Phone: 09-03-314-073 • Email address: hienktt2000@yahoo.com.vn II Educational Qualification Institution The Hanoi Law University, Vietnam National Academy of Public Administration, Vietnam Academy of Education, Vietnam Vie/97/003 Project (ILO, UNDP, MOLISA) Date from Date to Degree(s) or Diploma(s) obtained 1992-1997 Degree of Bachelor of Laws 2003-2007 Degree of Master of Public Administration 1998 Certificate of Education 2000 Certificate of Labour Law Teacher UNDP & MOLISA 2000 Certificate of The training of service Providers on Basic Social Work Skill National Academy of Public Administration, Vietnam 2005 Certificate of designing Lecture and Education methods 2007 Certificate of Training course on Promoting Employability & Employment of People With Disabilities ILO & ULSA 115 III Civil Service, Eligibility and Government Working history Date from to Company/Project 1997Up to now The University of Labor and Social Affairs (ULSA) Position Lecturer in Laws Description - Teaching in Labour Laws - Teaching in Economic Laws - Teaching in Insurance Laws Membership of professional bodies: - Teacher of Hanoi Association enterprise of women - Member of College and University Association I, the undersigned, certify that to the best of my knowledge and belief, this data correctly describes me, my qualifications and my experience Date …………… Khuat Thi Thu Hien ... for evaluate labor relations at enterprises Thus, the theme of "Extent of Implementation of Labor Relations Criteria of the Textile - Garment Industry in Hanoi, Vietnam" Objectives of the Study... SHEET The Dissertation of KHUAT THI THU HIEN entitled EXTENT OF IMPLEMENTATION OF LABOR RELATIONS CRITERIA OF THE TEXTILE - GARMENT INDUSTRY IN HANOI, VIETNAM Submitted in Partial Fulfilment of the. .. Relations Criteria to the garment industry in Hanoi, Vietnam Significance of the Study This study will be primarily significant to the laborers of the textile industry of Vietnam because through the