VZCZCXRO7914
RR RUEHCHI RUEHCN RUEHDT RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHPB
DE RUEHC #7526/01 3382230
ZNR UUUUU ZZH
R 032222Z DEC 08
FM SECSTATE WASHDC
TO RUEHHI/AMEMBASSY HANOI 8186
INFO ASIAN PACIFIC ECONOMIC COOPERATION
ASSOCIATION OF SOUTHEAST ASIAN NATIONS COLLECTIVE
RUEHHM/AMCONSUL HO CHI MINH CITY 2939
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SECTION 01 OF 03 STATE 127526 
 
SENSITIVE 
SIPDIS 
SINGAPORE FOR TREASURY 
TREASURY FOR SCHUN 
USTR FOR DBISBEE AND LKARESH 
 
E.O. 12958: N/A 
TAGS: ELAB EAID ECON ETRD WTRO EINV ECPS VM
SUBJECT: VIETNAM LABOR DELEGATION VISIT TO WASHINGTON: 
INFORMAL MEETINGS 
 
REF: STATE 117469 
 
¶1. (SBU) Summary:  A delegation from the Vietnamese Ministry 
of Labor, Invalids and Social Affairs (MOLISA) participated 
in a series of informal meetings organized by the Hanoi-based 
USAID-funded Support for Trade Acceleration Project (STAR), 
in the Washington area from October 20 to 22.  The meetings 
took place in the context of MOLISA's efforts to reform 
Vietnam's Labor Code and included discussion on a number of 
key labor issues, including freedom of association, rights to 
collective bargaining, labor code reform, and dispute 
resolution.  Representatives from USAID, the U.S. Department 
of Labor, and U.S. Embassy Hanoi also attended the meetings. 
End summary. 
 
--------------------------- 
DAY ONE: BROOKINGS AND NLRB 
--------------------------- 
 
¶2. (SBU) The MOLISA delegation was led by Nguyen Thanh Hoa, 
Vice Minister, and also included:  Dao Van Ho, Deputy 
Director, Legal Department; Le Kim Dung, Deputy Director, 
International Cooperation Department; and Nguyen Dung Tien, 
International Cooperation Department, who served as 
translator.  The meeting at the Brookings Institution focused 
on American labor history from an academic and research 
perspective.  The delegation showed particular interest in 
the number of independent American labor unions and the 
changing patterns of union membership.  (Note:  Although 
Vietnam has many trade unions, they are all affiliated with 
the Vietnam General Confederation of Labor (VGCL).  End 
note.) 
 
¶3. (SBU) In the next meeting, the National Labor Relations 
Board (NLRB) gave a formal presentation regarding dispute 
resolution mechanisms.  The delegation asked a number of 
questions related to the purpose and function of the NLRB. 
(Comment:  In the NLRB meeting, it was challenging for the 
two groups to share experiences and make direction 
comparisons since the U.S. and Vietnamese contexts differ 
greatly.  End comment.) 
 
--------------- --------------------------------------------- 
DAY TWO:  AFL-CIO/SOLIDARITY CENTER AND FEDERAL MEDIATION AND 
CONCILIATION SERVICE 
------------------------------------------- ----------------- 
 
¶4. (SBU) On day two, AFL-CIO/Solidarity Center representative 
Earl Brown summarized the history of the American labor 
movement and its relationship to the development of American 
labor law.  He explained that U.S. industrial relations were 
based on an adversarial relationship between employer and 
employee, and dialogue and collective bargaining are needed 
to resolve differences.  Brown emphasized the role of unions 
in society, saying that unions are a great engine for 
democracy and for worker education. 
 
¶5. (SBU) Brown also shared his analysis of the successes and 
failures of the current American labor law and said that the 
NLRB would be a poor model for Vietnam to follow.  The Vice 
Minister explained that Vietnam's Labor Code, adopted in 
1984, is being completely revised, including occupational 
safety and health, labor inspection, and industrial 
relations.  The final draft is due to the National Assembly 
in 2010, and the National Assembly must adopt the revised 
code by March 2011.  He said they will adopt aspects of the 
American system, including a form of National Relations Labor 
Board. 
 
¶6. (SBU) The Vice Minister also expressed concern about 
commonplace wildcat strikes in Vietnam, saying they are 
taking place in part because Vietnam is in the early stages 
of industrialization.  He also said that the VGCL is not 
always very active, workers are reluctant to become trade 
union officials, and workers and employers frequently will 
not meet together. 
 
¶7. (SBU) Brown emphasized that violence is not a remedy to 
strikes.  Having visited Vietnam recently, he said it would 
be worthwhile for the AFL/CIO, MOLISA, and the VGCL to plan a 
 
STATE 00127526  002 OF 003 
 
 
seminar on how to deal with wildcat strikes and he would like 
to continue discussions through the Solidarity Center's 
visitor program. 
 
¶8. (SBU) Later that day, Federal Mediation and Conciliation 
Service (FMCS) Commissioner Lynn Sylvester provided an 
overview of the role and the function of the FMCS. 
 
----------------------- 
----------------------------------------- 
DAY THREE:  NATIONAL LABOR COLLEGE, CITY OF BALTIMORE, AND 
RETAIL AND APPAREL COMPANIES 
--------------------------------------------- 
------------------- 
 
¶9. (SBU) On October 22, the Provost of the National Labor 
College welcomed the delegation and explained the school's 
history and program of study.  The Vice Minister said that 
the University of Labor and Social Affairs in Vietnam, which 
graduates approximately 1000 students each year, is facing a 
shortage of qualified educators.  He also explained that 
Vietnam's in-service training program for adult learners is 
lacking in quality due to a shortage of qualified educators 
and textbooks.  The delegation asked the AFL-CIO/Solidarity 
Center's representative if he would consider sponsoring three 
MOLISA officials to attend the National Labor College; the 
representative said he would follow up. 
 
¶10. (SBU) City of Baltimore local officials, including the 
city's Labor Commissioner, the regional FMCS Commissioner, 
and representatives from the public services trade unions, 
met the delegation.  The participants shared examples from 
the complex and vibrant labor environment in Baltimore. 
Participants said the city and its public services unions 
recently concluded a two-year contract addressing working 
conditions, grievances, arbitration, and seniority. 
 
¶11. (SBU) Vice Minister Hoa described Vietnam's 
industrialization process and the problems with wildcat 
strikes.  He inquired about the relationship between local, 
national, and international unions, and was particularly 
interested in learning about the dispute resolution process. 
He said he is seeking an approach to labor law reform that 
promotes simultaneously investment and protects workers' 
rights.  (Comment:  The delegation appreciated meeting local 
government officials and grassroots union representatives 
since many current MOLISA concerns involve interactions at 
the local and provincial levels in Vietnam.  They noted the 
effective interactions among union representatives and 
management and mediators at the local level.  End comment.) 
 
¶12. (SBU) The delegation's final meeting was with senior 
representatives from retail and apparel companies, including 
Target, Nike, Wal-Mart, Jones Apparel, and Hanes Brands.  The 
meeting focused on the labor concerns of retail and apparel 
companies.  The company representatives raised a range of 
serious labor and trade-related issues that the delegation, 
in the absence of the Vice Minister, who was not able to 
participate, was either unwilling or unable to address. 
 
¶13. (SBU) Retail and apparel company representatives 
expressed concern about wildcat strikes and noted the 
importance of provincial labor leaders gaining a better 
understanding of MOLISA's labor reform, and continuing to 
train workers to help them understand their rights.  MOLISA 
responded that all parties want illegal strikes to cease and 
the GVN government is taking action to minimize illegal 
strikes by encouraging dialogue. 
 
¶14. (SBU) One corporate representative asked about the 
purpose of the one-percent "trade union fee" (to take effect 
on January 1, 2009) that will be taken from the payrolls of 
foreign-owned/invested enterprises.  MOLISA responded that 
these funds will help train employees to raise awareness 
about their rights at work.  The retail and apparel 
representatives said that they expect factories to adhere to 
human rights and international labor standards, and made 
known that compliance in the factories would determine where 
they buy merchandise.  (Note:  During the retail and apparel 
meeting, the MOLISA delegation emphasized that one of the 
main functions of the VGCL is to get workers to meet company 
production targets.  End note.) 
 
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COMMENT 
 
STATE 00127526  003 OF 003 
 
 
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¶15.  (SBU) The MOLISA delegation's side meetings in 
Washington did not provide directly detailed guidance on 
labor code reform in Vietnam; however, the meetings did 
provide opportunities for the group to hear a range of views 
on labor issues, learn more about U.S. labor dispute 
mechanisms, and make additional contacts that may be able to 
provide resources for future cooperation.  End comment. 
RICE