Vietnam's labour relations and global financial crisis

Labour relations institutions and practices in Vietnam have changed since the economic reform that started in late 1980s. Since joining to the World Trade Organisation (WTO) in 2006, a new social imperative has emerged in which the country sought to reconcile economic growth with the protection of labour conditions within this context in which the Global Financial Crisis (GFC) has been experienced. This study examines the challenges of complex labour management relations in the new economic, political and social environment of the GFC in Vietnam. The paper explores changing labour management relations by investigating the evolution of labour relations policy and practice since Vietnam began its economic reform. During the transition from a planned to market economy, the former stable relationship between managements and workers has been replaced by widespread labour disputes, and a proliferation of labour strikes since the installation of GFC in 2008. These events have been due to a lack of regulations for labour management relations, an inadequate compensation system and working conditions, and inefficient trade union practices. The paper concludes that the changes in labour management relations reflect the impact of the global crisis on labour market diversity as well as the increasingly important role of trade unions in protecting workers' rights and interests. A new model for unions is urgently needed for dealing with labour and employment issues at firm's level in the new economic era.