5 – No guarantee of rights
The ITUC Global Rights Index

Laos

The ITUC does not have an affiliate in Laos.

In practice

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Union and party hand in glove30-12-2011

Given that the Lao Federation of Trade Unions (LFTU) and the Lao People’s Revolutionary Party (LPRP) are so closely knit, the LFTU effectively enables the party to control the workers. In its official declarations, the LFTU frequently speaks of its collaborative role with the government to ensure enforcement of the labour law so that the rights of both workers’ and employers’ are protected and as a formulator of future labour laws and regulations. This quasi-official function of the LFTU means it has a dual role as both a controller as well as a potential protector of labour.

Factory level LFTU representatives are usually LPRP members and/or part of the management. There is little evidence that the union is able to effectively protect workers’ rights in particular in private sector companies.

No collective bargaining in practice30-11-2009

The government unilaterally sets wages for government employees, and its decision is not subject to collective bargaining collective bargaining The process of negotiating mutually acceptable terms and conditions of employment as well as regulating industrial relations between one or more workers’ representatives, trade unions, or trade union centres on the one hand and an employer, a group of employers or one or more employers’ organisations on the other.

See collective bargaining agreement
. For private sector employees, the Labour Law gives unions the right to negotiate pay levels with the employer. However, there is no provision in the labour law that compels an employer to bargain or penalises the failure of an employer to bargain.

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