A decree on the implementation guidelines of the Vietnamese Labour Code, issued at the beginning of 2015, includes a section on the resolution of strikes that makes it even easier to declare strikes illegal. In reality, all strikes in Vietnam are technically illegal because of the stringent requirements - the dispute must relate to “interests”, in other words benefits that are beyond the labour contracts or are not legally binding on the employers. In the event of a dispute, a ballot is conducted, and only if more than 50 per cent of workers agree to go on strike may they legally proceed with their collective action
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When an “illegal” strike breaks out, the employer is required to immediately report it to the district or municipal government and upper-level unions. However, the only legitimate trade union in Vietnam is the Vietnam General Confederation of Labour, which has branches across all administrative levels of the state. Leadership positions in upper-level unions are held by members of the Communist Party. Those branches are then in control of company unions in their areas. Employers often appoint leaders in company unions, sometimes with assistance from upper-level unions.
The union will examine the employer’s report and within 24 hours, the labour bureau will finalise its report and inform higher authorities. This process will end with the city or provincial government issuing an announcement that the strike has gone against legal procedures.
Under the new decree, the court has the power to rule over the lawfulness of strikes taken by the local government. Employers no longer need to lodge their paperwork with the court; they only need to report to the local authorities and can have the unlawful strike verdict issued within a day.
Once a strike has been settled, the employer will calculate damages and costs incurred in recovering from the strike. They will then proceed to request that the unions that organise strikes pay compensation.