Tóm tắt Luận án Research labor relations in JSCs in Hanoi city

Labor Relations in JSCs implies economic and social natures because when entering into Labor Relations, each party has set obvious economic benefits and parties have born people-to-people relation within a community. Labor Relation in JSCs is both united and contradictory because conflicts are historically existed due to economic benefits of opposite sides. However, if enterprises achieve targets during business operation, opposite parties can gain economic benefits by several bases. Because of setting obvious research objects along with using proper researching methods, this thesis has dealt with basic contents and gained some results as follows: (1) systemize and develop some theoretical issues of Labor Relations in JSCs: Some basic definitions; basic contents of Labor Relations in JSCs (subjects, interactive mechanism, interactive forms);

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y 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. 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. 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. 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 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 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 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]. 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 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 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. Natural conditions Natural conditions will affect the negotiation contents between employers and employees in JSCs: salaries, hazardous allowances, working conditions, break time, ... 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. 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. 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 Personnel policy Enterprise-level labor relations depend on the level to meet the requirements of employees, expressed through personnel policy. 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. 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. Scale of enterprise Scale of enterprise affects the personnel policy and business culture and labor relations. 8 Scope of business Scope of business affects the agreements between subjects in labor relations. 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 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. 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. 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 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. 11 The employer From the results of investigating sampling for JSCs in Hanoi and research results of other authors, the thesis made the following observations: (l) the employer is assessed at the average level because of low professionals, views and perceptions about labor relation (Considering 5 indicators: management skills, strategic vision, knowledge and personnel management skills; professionalism; attitudes and perceptions about labor relation); (2) The majority of the employers in JSCs graduated with the degree of bachelor or master; however, some people trained in economics and business administration account for a small proportion; (3) the employer of the enterprise is currently not grasped management legislation and labor usage; (4) The qualities and thought, but many skills are weak, particularly the skills of human governance. The control of the operating system is not good, coupled with the low hierarchy; (5) in the treatment of the employee and their representative organizations, they are seeking to evade the implementation of the regime, service and imposing the management measures in no consistent with the law. 2.2.2. Analysis on the interactive mechanism of the labor relation in JSCs in Hanoi The interactive mechanism of the labor relation in JSCs in Hanoi is currently the current bilateral mechanisms and mainly in the form of: direct negotiation between employees and employers; collective negotiation between the employee’s representative and employer’s representatives; implement collective labor agreement and resolve conflicts. Through analysis on the statistics and survey results by the author, The thesis was evaluated through the operation of the labor relation in particular aspects of the labor relation and give some comments: (1) In terms of the labor contract: there are still restrictions on the forms, contents, subjects signed the contract; (2) In terms of salary: Most of these enterprises have clear salary payment regulations, no violations of the minimum salary as prescribed by the law. But the salary level is not corresponding to the labor value the employee contributed; The salary payment work of these enterprises are not really fair, clear, easy to understand; (3) In terms of social insurance, health insurance: This is a very big limitations of JSCs in Ha Noi. For examples: The enterprises does not voluntarily participate; Many enterprises own the large amount of debt; Salary and wage payments for social insurance is not exactly popular with the reality; (4) In terms of labor safety: labor accidents have increased. The SMEs have not yet been implemented professionally; The condition of the 12 employee’s occupational disease also tend to rise; Through the above aspects showed many favorable factors in the bilateral mechanism in the labor relation in JSCs in Hanoi. 2.2.3. Analysis on the interactive form of the labor relation in JSCs in Hanoi The social dialogue The forms of social dialogue used by JSCs in Hanoi may include: Overall meeting with the participation of employees, holding periodic meeting between the employee and the employer, making comment box of the employees’ consultation, LAN construction, publishing internal newsletters, organizing congresses of workers and employees, negotiating to sign collective labor agreement. The main contents of the dialogue of JSCs in Hanoi are on some issues: salaries, bonuses, allowances, insurance and working conditions. The dialogue taking place is when building the remuneration policy or when there are conflicts concerning the interests of the both entities in the labor relation. Towards the authorities of Hanoi also participated in the organization of some dialogue activities for firms, enterprise associate and employees. However, the frequency and effectiveness of these activities are not high. Negotiation The agencies and organizations of Hanoi have many activities to develop, guide enterprises in the organization negotiating and signing the collective labor agreement. In fact, the negotiations in this enterprise are only formalistic, reassure employees and deal with relevant cases. Many agreements have been signed but the contents are reproduced from the provisions of the law, the quality of the agreement is not high, not really the result of a process of dialogue, negotiation of collective representation of employees and employers, it is often subject to the impact, the effects of the employer in order to meet customer requirements of the import or meet the management requirements of the employer. Labor dispute Since 2008, the strikes in Hanoi have occurred less than the provinces and major cities have a lot of company, which is more moderate than before 2007. The reason why is due to the disagreements between the employee and the employer on the salary issues, bonus, working time, rest time, social insurance, working conditions, the way of the behavior, In recent years, the labor disputes occurred in the city have increased, mainly disputes on rights and benefits. The time of the occurrence of labor disputes in the 13 cycle of first quarter and second quarter of each year because this is a sensitive time in two years. The nature of labor disputes are also many changes in recent years, the dispute over wages and incomes nature wages, welfare, social insurance, compensation for damages has been increasing ... Of which, the overwhelming majority is the individual labor disputes. The above results show the nature and content of labor disputes is increasingly complex and intense. That partly reflects the change of the “quality” of the labor relation. 2.3. ANALYSIS ON THE REAL SITUATION OF THE FACTORS AFFECTING THE LABOR RELATION IN JSCS IN HANOI 2.3.1. Objective factors Law on the labor relation Labor Code in 2012 revised with new features have created important legal framework for the development of the labor relation with the healthy. Enclosed with the Law, the Government issued more 30 decrees, MOLISA, the related authorities has issued 70 circulars guiding the execution. However, there are still quite a lot of basic rules of labor relation that have not been instructed to perform. Not fully create homogeneous legal foundations, promote self-regulating ability of labor relation; Institutions supporting the two parties in labor relation in order to strengthen the abilities of dialogue and negotiation have not promoted the results. The legal framework for the representative organizations to form and operate is still inadequate; Trade Union Law was issued long time ago, no longer in accordance with the reality. The propagation and dissemination of labor law have many shortcomings; the inspection, examination and supervision of law enforcement of labor relation have not satisfied requirements; the State Administration on labor relation has not focused on one focal point; the Consultation mechanisms have not strong enough and not par with the development; Both the employees and the employers have knowledge of the law on management and use of labor at low level. Employees have no sense in studying and learning to get knowledge about this field. Cultural - social conditions This is a vantage point affecting labor relation of JSCs in Hanoi. In this section, the author has documented and analyzed to point out the aspects of social life with favorable changes such as: educational level, social labor division, welfare and social welfare, employment policies, vocational training ... have achieved positive results. The above results have a positive impact in creating the development environment of corporate culture, creating a foundation for the emergence and development of 14 healthy labor relation. However, there are still several factors with negative impacts such as the starting point is an agricultural economy and the psychological effects of the subsidy. Macroeconomic conditions The process of full and comprehensive open and assimilation is marked by joining the World Trade Organization WTO in 2007. As for Hanoi, GDP growth on average in the 2006-2010 period reached 10.73% per year. The structure of economic sector shifted towards the positive direction. The development investment capital in the city is constantly increasing at over 10% compared to previous year. However, there are still limitations and weakness, the macro economy is unstable, the inflation runs the risk and has rebounded, bad debts increase. Labor market Vietnam labor market gradually moves to operation and compliance with market rules. The thesis has analyzed and pointed out some problems of Vietnam labor market as follows: (i) lack of jobs due to the crisis; (ii) lack of highly qualified labor; (iii) low labor quality; (iv) labor export tends to decrease; (v) labor structure in occupations has the imbalance compared with the world. Thus, Vietnam labor market is currently also contains quite a lot of uncertainties. These factors will have impacts on labor relation. Organizations of mediation, arbitration and counseling institutions The arbitration and labor court system is unfinished in terms of organization; the role of labor courts is fuzzy. The legal system, the State management agencies, the institutions of representation, consultancy, judgment and support from the State on labor relation are still incomplete, Inspection of labor relation in our country is still missing; Activities of the basic Conciliation Council is paralyzed, so obligatory mediation step has not been applied according to regulations. The seminars in enterprises are in form; Main operations of labor arbitration are advisory, legal guidance and propaganda support, not implemented functions of an arbitration institution in accordance with the law. In 2012, the Hanoi City People's Committee has established Board of labor relation of the city. This is a huge effort in supporting the general development of labor relation and completing labor relation of enterprises in Hanoi. Activities of trade union organizations and organizations protecting the rights of employers • Representative organization of the employees (union) Trade union organizations are established from the central to the province level, 15 district level and local level. Grassroots trade union organizations in State enterprises are relatively strong in both quantity and quality of work. However, the development of grassroots trade unions and trade union members in the non-state sector is limited; fail to properly perform its role as representative organizations protecting the legitimate and lawful rights and interests of the employees. The capacity and qualification of the staff working in the trade unions of enterprises in many places has not met the requirements, lacked in conditions and mechanisms of action and protection for union officials. So, there a great impact on labor relation in JSCs in Hanoi in particular. • Representative organization of the employer This organization was established at the central level including Vietnam Chamber of Commerce and Industry (VCCI) and the Union of Cooperatives of Vietnam. At the provincial level, there are the Union Cooperatives, but many provinces and cities have not had the Branch of Chamber of Commerce and Industry at provincial level. Association of Enterprises has not completely mounted with VCCI, the operation mainly carries the natures of trade promotion and investment, not has performed the role of representation for employers in the enterprises. There has been no focal point to concentrate activities of the associations in supporting the development of labor relation and no legal framework for representative organizations of employers to operate efficiently. In November, 2011, the VCCI established Council of Gender using city's labor with the participation of 5 Associations and 15 large enterprises in Hanoi representing different fields. This is an important focal point institution, represents the employers participating in trilateral mechanism for the development of labor relation in the city. But in the reality, activities of this organization do not represent enterprises and have not had the cohesion. 2.3.2. The subjective factors Human resources policy of enterprises In fact, only about 30% of Vietnam enterprises build human resources strategy and primarily focus on large-scale enterprises. Investigations by the author show that: The recognition and evaluation of the employee and the employer on human resources policies are different, so it is easy to cause the conflict. Human resources policy of the JSCs in Hanoi still have had several limitations such as personnel remuneration implemented empirically and unclearly, even inconsistently ... These enterprises have also just paid attention to financial remuneration policy rather than 16 financial compensation combined with non-financial remuneration. These are factors that negatively influence the formulation and development of healthy labor relation in these enterprises. The technological level of enterprises The survey results show that the technological level of the JSCs in Hanoi today is rated at the relatively modern level. Many companies have advanced and modern level of technology, require employees to have knowledge and skills to operate. Besides, there are also some companies with medium, backward and very backward level of technology. All these things will affect the content of the agreement between the parties in labor relation. Corporate Culture The JSCs in Hanoi have focused on building and developing cultural elements as the foundation for the operations of enterprises. In the elements of corporate culture, the element evaluated the best by employees currently is the information exchange system, followed by the movement of rituals and rites. And the elements of the business philosophy and processes have prescribed to only be evaluated below average. Thus, employees are not aware of orientation, business philosophy as well as processes and relations that companies are using. Business fields and lines Through synthesis and analysis, authors have shown that business lines of JSCs in Hanoi are quite diversified and covered the fields from the production and trade to service and business fields and lines have an impact on the agreements between subjects in labor relation. Enterprise Scale The scale of JSCs in Hanoi is mainly of enterprise type with small and medium scale, the number of employees is less, and the employers find it is easy to grasp the situation to promptly handle any problems arising. However, human resources management system of these companies has not been methodical yet, so affecting human resources policies. Awareness of subjects in labor relations Based on analyzing level of subjects and evaluating other capacities according to 2 surveyed enterprise groups. The author takes out conclusions: awareness of subjects about labor relations in JSCs in Hanoi is limited (achieved only above average) and there is a gap between employee and employer. This is an huge effect for creating harmonious labor relations between them. 17 2.3.3. Some conclusions drawn from the impact factor analysis With analysis of the real situation of factors affecting labor relation in JSCs in Hanoi as mentioned above, the author has pointed out impacts of each factor to labor relation. 2.4. SITUATION ANALYSIS OF LABOR RELATION IN JSCS IN HANOI WITH TYPICAL NATURE The author has carried out the investigation and study in 2 JSCs including: (l) Hai Ha Confectionery JSC. This is the enterprise equitized in 2003 according to the guidelines of the State; (2) Vietnam Communication Corporation. This is the enterprise founded in 2006 under Law on Enterprise. Based on the research on: the subject of labor relation; interaction mechanisms and social dialogue, the author has given these following conclusions: (i) the capacity of employees has changed in a positive direction, but differs by business sectors and fields. The qualification of the employees in manufacturing enterprises is limited, so conflicts are likely to arise due to the ignorance. The sense of living and working according to the law is not high; the lack of dynamism remains; (ii) Grassroots trade union organization has promoted its role in protecting the legal rights of the employees. However, the activities of this organization still leans to the form and organization, collective activities still depend on the employers; (iii) the position of employers is always higher than employees in labor relation, point of view and awareness of the problems on labor relation are insufficient; (iv) interaction mechanism of two parties is operated, but the negotiations and the collective labor agreement are in form seriously; (v) social dialogue is done with many forms, but the effect is not really high. 2.5. GENERAL EVALUATION 2.5.1. Achievements - Along with the perfection of institutions, policies and laws for labor relation of the State, Hanoi has had many effective measures making labor relation in enterprises in the city have positive changes. - The Employee in the Labor Relations tends to rise gradually along with the development of the JSCs. Vietnamese Employees in general and Employees working in JSCs in Hanoi in particular are considered as ingenious, clever, creative, inquisitive, able to quickly acquire modern techniques and technologies to be transferred from foreign countries. There have been the positive changes in awareness about employment and Labor Relations. 18 - 100% of local trade unions in JSCs in Hanoi are elected by Employees. The officials of local trade unions have been trained knowledge and basic skills in Labor Relations. They have represented the Employees to participate in solving some problems related to their rights, obligations and interests in Labor Relations and have organized lots of practical activities in order to improve spiritual life of the Employees. - Employers are increasingly young and have higher qualifications, be dedicated to work, optimistic about the future, meticulous in work, decisive, able to build a good relationship; have good quality and thinking. There are significant changes in the awareness of settling Labor Relations incurred. In terms of business, they are young, dynamic, decisive and audacious entrepreneurs,. - Organizations representing Employers have had the practical activities in suggest the Vietnamese State to complete the legal framework, build mechanisms and policies to help Enterprises develop and help young entrepreneurs improve Management Capacity in all aspects. - The bilateral mechanism in the Labor Relations in Hanoi has been operating fairly efficiently: 87% of Employees have been signed labor contract; the parties signing the Labor Contract and the singing principles have been basically guaranteed; most of JSCs have has their specific wage regulations; - Interactive forms in the Labor Relations are used quite diversely; Labor disputes are resolved basically, has limited the strikes; most of JSCs are interested in building the human resources policy, initially creating the foundations for carrying out healthy Labor Relations. 2.5.2. Limitations (1) The participants in Labor Relations in JSCs in Hanoi currently has asymmetric capacity and position: The Employer is always in a higher position, lowly professional and less methodical, has insufficient views and perceptions of Labor Relations; low awareness of complying with the legal regulations; limited management skills and strategic vision, especially in human resource development and investment; Employees have low technical qualifications, low consciousness of living and working in accordance with the law, limited industry style. Employees are always in a lower position in the negotiations; the local trade unions have not promoted the representative role of the Employees. Trade Union officials have limited knowledge about laws and skills necessary in their role. The activities of the local trade unions have been still the tip of iceberg and not focused on in-depth 19 activities of Labor Relations; (2) The bilateral mechanism in Enterprises has been operated but not been interested in find out solutions to increase both parties’ profits; (3) Not active in the prevention and settlement of the strikes; (4) Dialogues, negotiations and award of collective labor agreements have been limited in terms of quality; (5) Most of the personnel policies have not been really methodical and little concerned about the long-term policies, etc. 2.5.3. The cause of the limitations * Objective causes (i) The State’s management on Labor Relations has been inadequate; (ii) Solutions to raise awareness, understanding and skills in Labor Relations have not been effective; (iii) labor supply and demand relations have been imbalanced; (iv) Rapid urbanization in Hanoi has led to big labor movement in agriculture to other sectors; (v) Law system in Labor Relations has not facilitated the healthy development of enterprises; (vi) the local trade union officials have mostly held several official positions, heavily dependent on the Employers. Therefore, the role of the local trade unions is very faint; (vii) Labor Relation institution has not proved effective. * Subjective reasons: (i) Few companies have laid the foundation for the development of enterprises with Business Culture; (ii) the human resource policy of the enterprises have been limited, less professional; (iii) the Employers have not fully implemented the provisions of the law, not paid adequate attention to the legitimate rights and interests of Employees; (iv) The Employees have been limited awareness, understanding about policy, and labor law; (v) The subjects have not active in negotiation to build harmonious Labor Relations in order to increase the benefits of all parties. 20 Chapter 3: SOLUTIONS TO COMPLETE LABOR RELATIONS IN JSCs IN HA NOI DURING THE PERIOD UNTIL 2020 3.1. DEVELOPMENT ORIENTATION OF JSCs IN HANOI IN THE COMING TIME 3.1.1. Socio-Economic Development Plan of Hanoi City by 2020 3.1.1. l. Overall objectives To speed up the construction of the technical infrastructure and culture of the modern and civilized capital closely associated with the development of knowledge- based economy. Key tasks and breakthrough stages Hanoi has focused on key tasks such as: Economic development; Urban planning; cultural development; scientific and technological development; National defense and security strengthening. 3.1.2. Development Orientation of JSCs in Hanoi Development orientation: (i) Associated with the guidelines and policies, socio- economic development objectives of the Party and the State; (ii) Associated with the common interests of the whole society; (iii) Develop sectors and field that Hanoi has favorable advantages. 3.2. CONCEPT AND DIRECTIONS TO COMPLETE LABOR RELATIONS IN JSCs IN HANOI IN THE COMING TIME 3.2.1. Concept of completion Firstly, it is necessary to comply with the guidelines, policies and orientations of the Party, law policies of the State development on harmonious, stable and advanced Labor Relations; Secondly, it is required to ensure the Labor Relation system operation under the principle of market economy. 3.2.2. Completion direction The author presents 5 orientations associated with 5 problems: (1) awareness and consciousness of the parties; (2) the institutional system creating the environment for Labor Relations: (3) Capacity of subjects; strengthening social dialogues, restricting strikes; settling labor disputes; (4) Strengthening the role of local trade unions; (5) Forming a supporting institution system. 21 3.3. SOME SOLUTIONS TO COMPLETE LABOR RELATIONS IN JSCs IN HANOI IN THE COMING TIME 3.3.1. Solutions on the subjects of Labor Relations Innovative thinking and higher awareness of subjects in Labor Relations In this solution, the author focused on the forms and methods to innovate thinking and improve awareness of subjects, especially the Employers of the nature and inner contents of Labor Relations and position of subjects in this relation. The author suggests the state authorities and the relevant social and political organizations in Ha Noi to join this activity. It is necessary to select the contents appropriate for each perception subjects such as: The issues the Employees need to recognize and Employers should be aware of. The author recommend how to implement for each object: (1) For the Employers: Divided into 2 objects: (i) For the Employers in the Enterprises are about to be established; (ii) For the Employers in the Enterprises are currently operating; (2) For the Employees: (i) For unskilled Employees employed by the Enterprises and joined a training course before starting their work or carrying out simple tasks; (ii) For the Employees working in the Enterprises; (3) For the local trade union officials. Enhance the understanding and training courses on labor law for the Employees In this solution, the author classifies different objects and presents the forms for each subject. In particular, it is necessary to be most interested in unskilled employees in rural areas working in industrial parks, who are required to be equipped with legal knowledge through posters available and installed on the path to the industrial parks, the workers’ housing areas, residential areas with a large number of workers in selected contents. In the current conditions, it is possible to disseminate laws to the Employees via social network websites. Strengthen the role of the local trade unions in JSCs in Hanoi This solution shows tasks required to be carried out by the local trade unions to implement management functions well; participate in activities related the parties’ rights. Besides, it is essential to pay attention to promote the Employees’ potentials, initiatives, along with the leaders of Enterprises to seek and exploit resources for its development. Moreover, it is necessary to enhance the representation function of the Executive Committee of local trade unions for better implementation of the role as the representative of the Employees, protection of the rights of the Employees. In 22 particular, there are measures to improve the capacity of trade unions and local trade union officials. 3.3.2. Solutions of interaction mechanisms Specifically, some solutions should be noted: Create and improve efficiency of singing the Collective Labor Agreements; focus on real dialogues as a precondition for negotiating and signing the Collective Labor Agreements; review the entire award of the labor contract to ensure the contracting principles stipulated by the Labor Code; Review the salary and treatment policy in order to ensure equality and transparency; Ensure proper implementation of social insurance and health insurance policies, labor safety and sanitation for each employee regardless of position and job title. 3.3.3. Solutions of interaction forms of Labor Relations Strengthen social dialogue and collective negotiation The author presented 5 notes when strengthening social dialogue and collective negotiation for JSCs in Hanoi; recommended the negotiation process including 6 steps: (1) Negotiation preparation; (2) Meet the Representative of the Employer; (3) Suggest the problems; (4) Debate each issue; (5) Negotiate; (6) Sign and terminate the contract; Recommend to apply six conditions for “real” negotiations and “real” agreements by Nguyen Manh Cuong; Concretize preparation. The author presented 8 principles for effective negotiation. For labor disputes In order to prevent labor disputes: it is possible to use the following tools: social dialogue; Law; Steps to resolve disputes effectively are: (l) Decide what you want to achieve; (2) Find the person who can best resolve the disputes; (3) Ready to negotiate; not give the orders; (4) Not be distracted by personal conflicts; (5) Focus on the beneficial results for both parties. The author recommended 7 principles to resolve the disputes; pointed out the 5 attributes of the dispute settlement process, which are: (l) Clarify the benefits of all parties; (2) Establish good working relationships; (3) Give the solutions to make a good choice; (4) Discuss solutions before selection; (5) Strengthen communication relationship and commitment. 3.3.4. Other solutions Complete the human resource policy in the Enterprises In this solution, the author recommended to reestablish Human Resource Management System fundamentally and comprehensively, including all policies of recruitment, assignment, use, training, treatment. Therefore, it is required to find out 23 “Breakpoint”, at which treatment policy is fair, reasonable and brings about satisfaction to both Employee and Employer. All human resource policies of the Enterprises must be built on the principle: All Employees in Enterprises are equal irrespective of gender, race, religion. Build and develop the Business Culture in the positive direction as the foundation for appearance and healthy development of Labor Relations. According to Assoc. Prf. Dr. Le Quan, during the Business Culture building process; it is necessary to determine and develop the core values of the Enterprise, methods and techniques to identify and control develop the core values in the Business Culture system. Specifically, when building the Business Culture, it should be noted that the Business Culture includes 5 layers: (l) Business and management philosophy; (2) Motivation of individuals and organizations; (3) Regulation process; (4) Information exchange system; (5) Movements, rituals and rites. In each layer, the author indicates the role, meaning and how to build 3.4. SOME RECOMMENDATIONS AND SUGGESTIONS 3.4.1. Enhance Management capacity and support Labor Relations of State agencies and Labor Relation institutions It is essential for Hanoi city authorities to focus on strengthening state management organization and mechanism in Labor Relations from city level to district level to ensure have appropriate organizations and employees to implement tasks set forth in each period. 3.4.2. Complete the legal system of Labor Relations It is necessary for Vietnamese State to improve the legal system of Labor Relations in the direction of: changing our legal thinking from adjusting specific contents of Labor Relations to adjusting the Labor Relation mechanism and Labor Relation contents. 3.4.3. For the wage policy of the State The Vietnamese State was directed towards the issues related to establish the minimum wage, the minimum wage of the sector; Provisions on how to pay salary flexibly, form the legal framework, technical guidance, information and negotiation and dialogue mechanisms for salary. 3.4.4. Raise the operation efficiency of support institutions, arbitration, inspection and mediation The Vietnamese State was directed towards focusing on the establishment and operation of mediation institutes, mediation institutions, arbitration and settlement; 24 consultative institutions, support institution and establishment of additional functions of labor inspection authorities for compliance with the law. 3.4.5. Complete the trilateral mechanism in Labor Relations In this recommendation, the author pointed out the role of the trilateral mechanism and the conditions the State must create for operating this mechanism effectively and in accordance with national conditions. 3.4.6. Promote the development of the labor market In this recommendation, the author pointed out the issues related to the labor, employment and labor market development policies the Vietnamese State should amend. In particular, what the Vietnamese State should do was concretized. 25 CONCLUSION Labor Relations in JSCs implies economic and social natures because when entering into Labor Relations, each party has set obvious economic benefits and parties have born people-to-people relation within a community. Labor Relation in JSCs is both united and contradictory because conflicts are historically existed due to economic benefits of opposite sides. However, if enterprises achieve targets during business operation, opposite parties can gain economic benefits by several bases. Because of setting obvious research objects along with using proper researching methods, this thesis has dealt with basic contents and gained some results as follows: (1) systemize and develop some theoretical issues of Labor Relations in JSCs: Some basic definitions; basic contents of Labor Relations in JSCs (subjects, interactive mechanism, interactive forms); (2) reveal objective and subjective factors influencing Labor Relations in JSCs. At the same time, investigations into labor relation management in JSC home and abroad are carried out and then experience lessons are withdrawn in order to apply in JSCs in Hanoi; (3) Basing on investigations into environment and JSCs’ operation within Hanoi, analyze exiting situation of Labor Relations of JSCs in Hanoi in the years to come; the first is the solution for subjective of labor relations; the second is resolution for interactive mechanism of Labor Relation; the third is solution of interactive form for subjective factors of labor relations. Furthermore, the thesis has posed some recommendations and proposals so as to facilitate the completion for Labor Relations of JSC in Hanoi in the future. Despite great attempt, this thesis has mentioned to new issues in terms of theories; practices; complicated research contents as well as limited research conditions, shortcomings are still existed. I would like to be contributed by teachers, scientists and colleagues so that I can improve following research works. I am so grateful to instructors, colleagues, family and friends who have created favorable conditions for me to fulfill this thesis. 26 RESEARCH WORKS FOR THE THESIS 1. Strikes in Vietnam from the perspective of labor relations, Social Labor Magazine 2. Improving labor relations in JSCs, Social Labor Magazine 3. Foreign Employee Quality in Vietnam – Related issues, Business Finance Magazine 4. Labor relations in Private Companies – Status quos and Recommendations Economy and Development Magazine 5. Improving Capacity of Subjective Labor Relations in JSCs in Hanoi, Social Labor Magazine

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