Nghiên cứu các nhân tố tác động đến việc tranh chấp lao động – trường hợp các doanh nghiệp fdi từ hàn quốc tại việt nam

MINISTRY OF EDUCATION AND TRAINING DA NANG UNIVERSITY OF ECONOMICS RESEARCH ON FACTORS INFLUENCING LABOR DISPUTES – CASE STUDIES OF FDI FIRMS FROM KOREA IN VIETNAM NGHIÊN CỨU CÁC NHÂN

MINISTRY OF EDUCATION AND TRAINING

DA NANG UNIVERSITY OF ECONOMICS

RESEARCH ON FACTORS INFLUENCING LABOR DISPUTES – CASE STUDIES OF FDI FIRMS FROM

KOREA IN VIETNAM

NGHIÊN CỨU CÁC NHÂN TỐ TÁC ĐỘNG ĐẾN VIỆC TRANH CHẤP LAO ĐỘNG – TRƯỜNG HỢP CÁC DOANH NGHIỆP FDI TỪ HÀN QUỐC TẠI VIỆT NAM

DOCTORAL DISSERTATIONS IN ECONOMICS

DA NANG, 2022

MINISTRY OF EDUCATION AND TRAINING

DA NANG UNIVERSITY OF ECONOMICS

RESEARCH ON FACTORS INFLUENCING LABOR DISPUTES – CASE STUDIES OF FDI FIRMS FROM

KOREA IN VIETNAM

NGHIÊN CỨU CÁC NHÂN TỐ TÁC ĐỘNG ĐẾN VIỆC TRANH CHẤP LAO ĐỘNG – TRƯỜNG HỢP CÁC DOANH NGHIỆP FDI TỪ HÀN QUỐC TẠI VIỆT NAM

MAJOR: BUSINESS ADMINISTRATION

CODE: 62.34.01.02

DOCTORAL DISSERTATIONS IN ECONOMICS

SUPERVISORS:

DA NANG, 2022

Da Nang, 2022

TABLE OF CONTENTS AUTHOR’S DECLARATION III TABLE OF CONTENTS IV LIST OF ABBREVIATIONS VIII LIST OF TABLES IX LIST OF FIGURES XI

CHAPTER 1: GENERAL INTRODUCTION OF RESEARCH 1

1.1 RATIONALE OF THE RESEARCH 1

1.2 RESEARCH OBJECTIVES AND QUESTIONS 2

1.3 RESEARCH SUBJECTS AND SCOPE 3

1.4 RESEARCH METHOD 3

1.5 SIGNIFICANCE OF THE RESEARCH 4

1.5.1 New theoretical contributions 4

1.5.2 New practical contributions 6

1.6 DESIGN OF THE RESEARCH 6

CHAPTER 2: THEORETICAL BACKGROUND AND CONCEPTUAL FRAMEWORK 7

2.1 THE DEFINITION, RELATED THEORIES AND CONTENT OF LABOR DISPUTES 7

2.1.1 The definition of labor disputes 7

2.1.2 Related theories 9

2.1.2.1 Unitarism 10

2.1.2.2 Pluralism 10

2.1.3 The content of TC 12

2.2 IMPACTS OF TC 14

2.2.1 Tangible impacts 15

2.2.2 Intangible impacts 15

2.3 LITERATURE REVIEW ON TC AND REVIEW RESULTS 15

2.3.1 Literature review on TC 15

2.3.2 Literature review results 30

2.4 RESEARCH CONCEPTUAL FRAMEWORK 34

2.4.1 Research concepts and hypothesis development 34

2.4.1.1 Labor-related factor (LD) 35

2.4.1.2 Trade unions factor (CD) 38

2.4.1.3 Manager-related factor (NSLD) 40

2.4.1.4 Company-related factor (DN) 43

2.4.1.5 Labor-living related factor (SHLD) 46

2.4.1.6 Internally environmental factor (MTN) 49

2.4.1.7 Externally environmental factor (MTNG) 51

CONCLUSION OF CHAPTER 2 55

CHAPTER 3: OVERVIEW OF KOREAN FDI AND THE CURRENT SITUATION OF LABOR DISPUTES AT KOREAN FDI IN VIETNAM 56

3.1 OVERVIEW OF FDI INTO VIETNAM 56

3.1.1 Korean FDI in Vietnam 58

3.1.2 The contributions of Korean FDI to Vietnam’s socio-economic development 60

3.2 THE CURRENT SITUATION OF TC AT KOREAN FDI IN VIETNAM 61

3.2.1 The current situation of TC in Vietnam 62

3.2.2 The current situation of TC at Korean FDI in Vietnam 66

CONCLUSION OF CHAPTER 3 68

CHAPTER 4: RESEARCH METHODOLOGY 69

4.1 RESEARCH PROCEDURE 69

4.2 QUALITATIVE RESEARCH 70

4.2.1 Data collection method 70

4.2.2 Analysis methods 71

4.2.3 Qualitative research in detail 72

4.3 QUANTITATIVE RESEARCH 87

4.3.1 Questionnaire design and scale formulation 87

4.3.1.1 Questionnaire design 87

4.3.1.2 Scale formulation 88

4.3.2 Sample and sampling method 89

4.3.2.1 Sample size 89

4.3.2.2 Sampling method 89

4.3.3 Description of the overall survey 90

4.3.4 Data analysis methods 91

4.3.4.1 Descriptive statistics 91

4.3.4.2 Percentage statistics 91

4.3.4.3 Cronbach’s Alpha test 91

4.3.4.4 Exploratory Factor Analysis 92

4.3.4.5 Confirmatory Factor Analysis 92

4.3.4.6 Research model and hypothesis adjustment 93

4.3.4.7 Correlation and regression analysis 93

4.3.4.8 Testing violations of the model fit assumptions 93

CONCLUSION OF CHAPTER 4 94

CHAPTER 5: DATA ANALYSIS AND RESULTS 96

5.1 CHARACTERISTICS OF SAMPLES 96

5.1.1 General descriptive statistics 96

5.1.1.1 Response rate 96

5.1.1.2 Description of respondent demographics 97

5.1.2 Descriptive statistics 99

5.2 SCALE TESTING 101

5.2.1 Cronbach’s Alpha reliability analysis of the scales 102

5.2.2 Exploratory Factor Analysis 104

5.2.2.1 Independent Variables 104

5.2.2.2 Dependent Variable 107

5.2.3 Confirmative Factor Analysis 108

5.3 TESTING RESEARCH MODEL AND HYPOTHESES 111

5.3.1 Testing research model 112

5.3.1.1 Pearson correlation 112

5.3.1.2 Regression analysis 113

5.3.2 Testing violations of goodness of fit assumptions 114

5.3.2.1 Testing the linear relationship between the dependent variable and independent variables as well as heteroscedasticity 114

5.3.2.2 Assumptions about the normal distribution of the residuals 115

5.3.3 Testing the hypotheses 117

5.4 TESTING THE DIFFERENCE BETWEEN CONTROL VARIABLES AND

TC 120

5.4.1 Gender difference affecting TC 120

5.4.2 Marital difference affecting TC 120

5.4.3 Age difference affecting TC 121

5.4.4 Difference in education affecting TC 122

5.4.5 Difference in working period affecting TC 123

5.4.6 Difference in working positions affecting TC 124

5.4.7 Hometown location difference affecting TC 124

5.4.8 Difference in income affecting TC 125

CONCLUSION OF CHAPTER 5 126

CHAPTER 6: CONCLUSIONS, DISCUSSIONS AND MANAGERIAL IMPLICATIONS 128

6.1 CONCLUSIONS 129

6.2 DISCUSSIONS 132

6.3 MANAGERIAL IMPLICATIONS AND RECOMMENDATIONS 137

6.3.1 For the State and regulatory agencies 138

6.3.2 For employers and firms 139

6.3.3 For trade unions 142

6.3.4 For employees 143

6.4 LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCH 145

THE AUTHOR’S PUBLISHED ARTICLE LISTS 146

REFERENCES 147

APPENDIX 155

LIST OF ABBREVIATIONS

CFA Confirmatory factor analysis

CSR Corporate social responsibility

EFA Exploratory factor analysis

FDI Foreign direct investment

FIA Foreign Investment Agency

VCCI Vietnam Chamber of Commerce and Industry

VGCL The General Confederation of Labor of Vietnam

LIST OF TABLES

Table 1: Strikes by ownership, 2000-2018 63

Table 2: Strikes by industrial sector, 2014-2018 64

Table 3: Cause of strikes, 2014-2018 65

Table 4: Strikes by FDI nationality, 2014-2018 66

Table 5: The first consolidation of factors influencing TC 72

Table 6: The second consolidation of factors influencing TC 73

Table 7: Interview design and details 75

Table 8: The evaluation of factors influencing TC 77

Table 9: The third consolidation of factors influencing TC 78

Table 10: The original scales of factors influencing TC 79

Table 11: The official scale of factors influencing TC 83

Table 12: 5-point Likert scale 88

Table 13: The control variables and coding 89

Table 14: Response rate 96

Table 15: Respondents’ demographics summary 98

Table 16: Mean, S Deviation of each item 100

Table 17: Reliability analysis results 102

Table 18: KMO and Bartlett’s test for independent variables 104

Table 19: Total Variance Explained 104

Table 20: Rotated Component Matrixa 105

Table 21: KMO and Bartlett’s test for dependent variable 107

Table 22: Total Variance Explained 107

Table 23: Component Matrixa 107

Table 24: CMIN 109

Table 25: RMR, GFI 109

Table 26: Baseline Comparisons (Incremental fit index) 110

Table 27: RMSEA 110

Table 28: Standardized Regression Weights 110

Table 29: Discriminant validity analysis result 111

Table 30: Correlations test result 112

Table 31: Model Summary 113

Table 32: ANOVA 113

Table 33: Coefficients 114

Table 34: Independent samples test - Gender 120

Table 35: Independent samples test – Marriage Status 120

Table 36: Descriptive – Marriage status 121

Table 37: Test of Homogeneity of Variances – Age 121

Table 38: Robust Tests of Equality of Means - Age 121

Table 39: Descriptive - Age 122

Table 40: Test of Homogeneity of Variances – Educational level 122

Table 41: ANOVA – Educational level 122

Table 42: Descriptive - Educational level 122

Table 43: Test of Homogeneity of Variances – Years of Experience 123

Table 44: ANOVA – Years of Experience 123

Table 45: Descriptive - Years of Experience 123

Table 46: Test of Homogeneity of Variances - Position 124

Table 47: Robust Tests of Equality of Means - Position 124

Table 48: Descriptive - Position 124

Table 49: Test of Homogeneity of Variances – Hometown location 124

Table 50: ANOVA - Hometown location 125

Table 51: Test of Homogeneity of Variances – Wage level 125

Table 52: ANOVA – Wage level 125

Table 53: Descriptive – Wage level 125

LIST OF FIGURES

Figure 1: Research model of Jeremy Brecher 17

Figure 2: Research model of Jie Shen 19

Figure 3: Research model of Duong Van Sao 22

Figure 4: Research model of Do Quynh Chi et al 23

Figure 5: Research model of Vuong Vinh Hiep 28

Figure 6: Research model 54

Figure 7: Registered Capital of FDI in Vietnam, US$ billions 57

Figure 8: FDI inflows to Vietnam by country in 2019 58

Figure 9: Cumulative FDI inflows to Vietnam by country 60

Figure 10: Number of strikes, 2000-2018 62

Figure 11: Research procedure 69

Figure 12: CFA result for the model 108

Figure 13: SCATTER 115

Figure 14: Histogram 115

Figure 15: Normal P-P Plot 116

CHAPTER 1: GENERAL INTRODUCTION OF RESEARCH

1.1 Rationale of the research

The Vietnamese Government issued the FDI law in 1987 FDI law shows that the Vietnamese Government encourages foreign companies to make investments in major industries such as manufacturing, automobile assembly, pharmaceutical and healthcare treatments, etc In this context, the influx of FDI into the country has increased and largely contributed to social development The latest data from the FIA of Vietnam shows that FDI

in Vietnam in 2019 reached US$38.2 billion, an increase of more than 7 percent as compared to the same period in 2018 Around 3,883 new projects were licensed with a total registered capital of US$362.5 billion in 2019 The Vietnam Briefing (2019) reveals that FDI accounts for approximately 70 percent of the country’s total export turnover and according to FIA, FDI contributed an average of 25 percent of total Vietnam’s GDP and created 10 million jobs in 2019

In terms of the investment relationship between Vietnam and Korea, it is reported

by KOTRA that the cooperation between two countries results in a successful investment story (KOTRA, 2020) According to the report, cumulative FDI investment of Korean firms to Vietnam is ranked No.1 and stands at US$67.7 billion with 8,467 projects in the period of 1988-2019 Around 9,000 Korean FDI firms have invested in Vietnam, and they contributed more than 30 percent of Vietnam’s exports and provided around 700,000 jobs domestically (Invest Vietnam, 2020)

Despite these achievements, the number of TC in Korean FDI firms forms the majority of the total TC according to VGCL The lowest contribution of Korean FDI firms

to the total number of TC in FDI firms in Vietnam is recorded in 2015 (32.46%) while the highest record is 46.12% in 2017 with 113 out of 245 cases of TC (Kim, 2019) Almost 40% of TC during 2014-2018 happened in Korean FDI firms (Kim, 2021) and have still taken a rather larger proportion than other FDI nationality

In 2020, a labor strike took place at the Korean FDI firm where a director who the author knows well According to him, his company paid an average of VND 9 million a month for their employees with various allowances so that the wages were far higher than other FDI nationalities and the minimum wage (VND 4.42 million regulated Dong Nai’s minimum wage in 2020), but the TC took place Given this situation, the author has a

question as to whether TC still occur because of economic reasons that have been identified

as the cause of TC at Korean FDI firms in numerous previous studies conducted until 2014 Are there other possible reasons behind economic reasons? Is it because of the so-called

‘Korean style’ inappropriate management method? Or has the company neglected some emerging responsibilities such as CSR?

If the number of TC in Korean FDI firms has not decreased, it needs to be clarified whether the solutions suggested by previous studies were effective or not

This research has begun to find answers to the above questions Although TC have not abated since 2014, there has been relatively little research on TC in Korean FDI firms since 2014, and in particular, there was no research conducted by any Korean since Jeoung Yoo Kyung in 2013

For the above reasons, the author selects the thesis topic: “Research on factors influencing labor disputes – case studies of FDI firms from Korea in Vietnam” The new

theoretical and practical contributions of this research are expected to help those FDI firms, including Korean FDI firms to find out some solutions to minimize the adverse impacts of

TC on the corporate competency and to achieve their business targets

1.2 Research objectives and questions

Many TC have often been identified in Korean FDI firms in Vietnam, and the consequences are devastating Although TC at Korean FDI firms in Vietnam are an important issue to be studied, academic research and in-depth media coverage has so far not been adequate

The investigation into previous research has identified that there are eleven factors potentially impacting the occurrence and settlement of TC at Korean FDI firms in Vietnam (Kim, 2019), however, there is not yet an established model to determine the extent to which these elements contribute to the variation of TC at Korean invested firms Therefore, the overall aim of this current research is to formulate its regression model which justifies the influences of these identified factors on TC at Korean FDI firms in Vietnam

Subsequently, the research was guided by the following specific objectives:

Firstly, a review of the current situation of TC in Vietnam and in Korean FDI firms Secondly, to identify the cause of TC occurring in Korean FDI firms, including some emerging new causes

Thirdly, to analyze the theory of industrial relations that is the most suitable for the current situation in Vietnam

Finally, to present some solutions based on the research results to minimize or reduce the occurrence of TC to employees, employers and company, CD and the State

The following research questions are a result of the research objectives:

Firstly, what kind of research has been done on the occurrence of TC?

Secondly, what is the current situations of TC in Vietnam and in Korean FDI firms? Thirdly, what factors affect TC in Korean FDI firms in Vietnam?

Fourthly, to which extent each factor influences the TC at Korean FDI firms in Vietnam?

Fifthly, among the management views of unitarism and pluralism, what is the best approach in modern society, especially in Vietnam?

Finally, how to set up and develop strategies and practices to manage TC at the Korean FDI firms in Vietnam?

1.3 Research subjects and scope

The research subject considers the factors influencing TC occurrence such as LD factor, CD factor, NSLD factor, DN factor, SHLD factor, MTN factor, and MTNG factor The thesis not only addresses the factors influencing TC (as specified in the research subject), but also proposes solutions for dealing with influencing factors to prevent and solve TC

The scope of the current research involves employees of Korean FDI firms located

in Nhon Trach, Bien Hoa and Binh Duong area in the South, Dung Quat industrial parks

in the Central and Yen Phong, Que Vo Industrial parks, Bac Ninh in the North regardless

of managerial and non-managerial employees, and gender The reason why the researcher selected these areas is that these firms are located where the highest proportion of FDI inflows from Korea into Vietnam Research and survey data between 2010 and 2020, and suggestions such as some reference and solutions by 2025

1.4 Research method

The research will be carried out by employing the following qualitative and quantitative research methods The reason the author combines the two methods is that qualitative research is primarily exploratory in nature, and helps a researcher better

understand motivations, needs, processes, and rationale for behaviors It provides deep insights into a situation and helps form ideas or hypotheses for potential quantitative research Quantitative research tends to be more numbers-focused and can help to assess hypotheses from qualitative research Adding a quantitative approach to qualitative research can provide a more holistic (and quantifiable) view of the subject matter the author researching Quantitative and qualitative research are complementary methods that work well together to provide insights that are both deep and wide

In this thesis, for qualitative research method, the author will review textbooks, academic works, findings of domestic and foreign studies on industrial relations of LD factor, CD factor, NSLD factor, DN factor, SHLD factor, MTN factor, and MTNG factor Then, the author suggested a research model to clarify the factors influencing TC Finally, the author will conduct several interviews with industrial relations experts, employers, senior managers, and human resource managers of Korean FDI firms

For quantitative research method, the author will survey and collect information from questionnaires delivered to employees of Korean FDI firms in Nhon Trach, Bien Hoa and Binh Duong area in the South, Quang Ngai in the Central, and Yen Phong, Que Vo Industrial parks, Bac Ninh in the North Then, the author will conduct data analysis utilized SPSS (version 20) and AMOS (version 22) software programs

1.5 Significance of the research

1.5.1 New theoretical contributions

The new findings of the research on the theoretical aspect are reflected through the following research results

Firstly, people have different ways of interpreting the events they come across in their daily life School and family circumstances, encounters at the workplaces, clubs, religions, friends, society, and occupations influence most of the understandings Employment is one of the elements that influence people’s life Hence, management and the nature of employment are some of the issues that trigger heated debates Generally, people have two different perspectives of interpreting managerial practices that take place

at workplaces These are known as unitarism and pluralism Unitarists teach that organizations need to have a common interest and a single focus of loyalty Nevertheless, this scenario is not the reality in many organizations Different employees and

organizational leaders hold different opinions and have competing interests The pluralist managerial perspective offers the best solution for dealing with contemporary organizations In the modern organizations, the workforce comprises people with different cultural backgrounds This diversity makes it hard for employees to share common interests Unitarists claim that CD is the main cause of conflict in organizations and that to avoid conflicts, organizations need to eliminate CD However, CD is not accountable for workplace conflicts Actually, conflict is endemic within the workplaces Therefore, in this thesis, the author will compare and analyze the management views of unitarism and pluralism, and discuss the best approach in modern society, especially in Vietnam

Secondly, most of the reviewed studies deal with the period till 2014 As TC have not abated since 2014, the author believes a study extending the timeframe to 2020 is timely Therefore, in this thesis, based on the data up to 2020, the author will check whether there are additional new emerging factors in addition to the factors have been investigated

so far, and these new emerging factors will provide basic data for future research

Thirdly, almost all researchers named the factors affecting the occurrence of TC and analyzed them as a single independent variable However, it is necessary to further subdivide and analyze the characteristics of each factor For example, if the government’s minimum wage policy causes a strike and it is the direct cause, the minimum wage policy

is set by the government and should be included in MTNG factor that cannot be changed

by workers, employers, and CD If it is determined that the employer is not interested in the basic life of the worker, wages may also be included in the NSDL factor This means that even the same variable can have different names depending on how they are viewed Therefore, in this thesis, the author will use a method of analyzing related factors by grouping them

Finally, although there are differences in the lifestyle and attitude of workers depending on the region of origin, most of the previous research has been investigated regardless of the region of origin In an interview with a Korean kitchenware FDI owner who is familiar with the author, he explained that most of the workers who took part in the strike came from the northern regions, particularly Quang Tri and Quang Nam province Therefore, in his company no longer hires workers from Quang Tri and Quang Nam province It is necessary to investigate whether strikes occur more frequently in companies with more workers from a specific region Also, this point seems to be “not easy to say”

by Vietnamese researchers In this thesis, the author attempts to investigate the same questions simultaneously for different regions to define regional differences

1.5.2 New practical contributions

The author highlights this research’s practical contribution as below

Firstly, most of the solutions reviewed by the author in the other studies that do not answer the question of how to solve TC in the future So, the author will provide specific and practical solutions in resolving TC

Secondly, given that the author used the survey conducted by employees of Korean FDI firms in various regions, therefore, it is emphasized what aspects of employees of Korean FDI firms consider important, and how these important points affect the occurrence

of TC With reference to the results, it will be helpful for Korean FDI firms to establish practical human resource management policies

1.6 Design of the research

The thesis topic: “Research on factors influencing labor disputes – case studies of FDI firms from Korea in Vietnam”

The thesis comprises 6 chapters of main content, and conclusion, recommendations, list of tables and figures, list of the author’s published works, references and appendix

Chapter 1 – General introduction describes the background and statement of

problem in this research concerning the factors influencing TC at Korean FDI firms in Vietnam Furthermore, this chapter explains the objectives, research questions, significance, and structure of the study

Chapter 2 – Theoretical background and conceptual framework explores the

previous studies concerning TC and factors influencing TC Conceptual framework is adapted from the previous studies

Chapter 3 – The current situation of TC at Korean FDI firms in Vietnam describes

the situations of TC in recent years in Vietnam, which pose the rationales to the current study

Chapter 4 – Research methodology explains research method, research design,

population and sampling, data collection and data analysis Moreover, the research procedure is also described in this section while the validity and credibility are justified

Chapter 5 – Data analysis and results present the findings which are drawn up from

the gathered and analyzed data concerning the hypotheses on the impacts of identified factors on TC at Korean FDI firms in Vietnam

Chapter 6 – Conclusions, discussions and managerial implications sums up the

whole study in terms of results reviews and regression model, and proposes the recommendations to the Government, regulators, CD, employees, and Korean FDI firms and employers to settle TC Moreover, this last chapter also presents limitations and suggestions for further study

CONCEPTUAL FRAMEWORK

2.1 The definition, related theories and content of labor disputes

2.1.1 The definition of labor disputes

OECE (2002) introduced the definition of TC based on International Labor Organization Resolution Concerning Statistics of Strikes, Lockouts and other Action Due

to TC, a labor dispute is a state of disagreement over a particular issue or group of issues over which there is conflict between workers and employers, or about which grievance is expressed by workers or employers, or about which workers or employers support other

workers or employers in their demands or grievances This definition is the most widely used definition of TC that in most instances the definition is derived from statistical standards developed by international organizations such as the IMF, OECD, Eurostat and ILO

US Department of Labor defines TC in the Labor-Management Reporting and Disclosure Act, any controversy concerning terms, tenure, or conditions of employment,

or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether the disputants stand in the proximate relation of employer and employee (US Department of Labor, 1987)

In the CD and labor relations adjustment act of Korea law defines, the term TC mean any controversy or difference arising from disagreements between a CD and an employer

or employers’ association with respect to the determination of terms and conditions of employment as wages, working hours, welfare, dismissal, and other treatments In such cases, the disagreements refer to situations in which the parties to labor relations are no longer likely to reach an agreement by means of voluntary bargaining, even if they continue

to make such an attempt As a result of TC, the following actions occur such as strikes, sabotage, lockouts, and other activities through which the parties to labor relations intend

to accomplish their claims (Korea Legislation Research Institute, 2019)

In Vietnam, the understanding of TC is governed by Vietnam Labor Code TC are defined as disputes over rights and benefits related to employment, wages, income and other working conditions, the performance of labor contracts, collective bargaining, and vocational training TC include personal TC between workers and employers and collective disputes between labor collectives and employers TC is the disputes about the rights, the responsibilities, and the benefits which are raised between parties inside labor relationship

TC include individual disputes between the employee and employers and collective disputes between the group of employees and their employers A collective labor dispute

is a dispute between the labor collective and the employer arising out of the different interpretation and implementation of labor law, collective bargaining agreement labor regulations, statutes, and other lawful agreements Collective TC are disputes arising from collective labor requiring the establishment of new labor conditions as compared to the provisions of labor law, collective labor agreements, labor regulations or other legal

regulations and agreements in the negotiation process between the group of the employees and their employers (Vietnam Ministry of Labour, 2013)

Tran Ngoc Dien (2012) defined a labor dispute is a natural phenomenon in the market economy TC often arise when a conflict of rights and interests between the employee and the employer to appear in the process of implementation of labor relations Labor dispute with the protesting activities is the spontaneous and passive self-defense as the employers simply protect their right and interest when conflict of rights and interests between the employees and the employers is not resolved promptly and satisfactorily, the climax of the

TC will be the strikes

According to Vuong Vinh Hiep (2014), the employee and the employer have an opposing relationship, in which they not only depend on each other but also have conflicts

of interests As a result, TC between the two parties are unavoidable TC refer to disputes

in terms of rights, obligations and interests arising between the parties in their industrial relations

As above, many definitions of TC are existing It is difficult to understand the definition precisely because TC arise in various forms and in many cases, they are resolved through mediation after the occurrence So, it is difficult to objectively measure and evaluate TC numerically, and as Chae (2013) mentioned the standards and definitions for

TC that are considered strikes are clear Therefore, the author uses the definition of TC in this thesis, as Tran Ngoc Dien (2012) noted that the climax of the TC appears to strike (a temporary, voluntary, and organized stoppage of work by the worker’s collective in order

to achieve their demands over rights, obligations and benefits) defines TC in the same definition as labor strikes to measure and evaluate TC numerically and to avoid non-specific definition of TC This definition is also in the same context as labor strike, in which

TC mentioned in the CD and labor relations adjustment act of Korea law appear as an action

2.1.2 Related theories

People have different ways of interpreting the events they come across in their daily life School and family circumstances, encounters at the workplaces, clubs, religions, friends, society, and occupations influence most of the understandings Employment is one

of the elements that influence people’s life Hence, management and the nature of employment are some of the issues that trigger heated debates Generally, people have two

different perspectives of interpreting managerial practices that take place at workplaces These are known as unitarism and pluralism The unitarist approach holds that workplace conflicts are avoidable According to this approach, managers may detour them by bringing all the stakeholders together They can and should make sure that an organization is managed from a single source of power Meanwhile, pluralists hold that workplace conflicts are inevitable Managers ought to convert them into profitable initiatives rather than criticize them

In this thesis, the author will compare and analyze the management views of unitarism and pluralism, and discuss the best approach in modern society, especially in Vietnam 2.1.2.1 Unitarism

According to Kim et al (2019), there are two main theories of unitarism including scientific management theory and human relations theory The first theory has started from scientific management theory of Taylor In this theory, as a management practice, this particular theory holds that the employment relations choices of management must start from the assumption that employees are immature in the ways of work, are prone to avoid

it whenever possible, and have limited, self-centered aspirations and time-horizons In so far as these conflicts with the aspirations and time-horizons of organizations, efforts to reduce the outward manifestation of internal tension are to be undertaken by direct and highly rigid control of the workplace activities of employees The second theory comes from the so-called human relations school In this case the reduction of organizational tension is held to rest on the ability of individuals to achieve self-fulfillment in the workplace The principal task of management on this conception is to manipulate workplace relations in ways that enable employees to feel personal satisfaction with being involved with the organization They are also expected to take an active interest in developing the skills of employees as a means of demonstrating a commitment to their personal well-being In whatever form, the aim of this managerial approach to employee relations is one that seeks to reduce internal tensions by developing the sense of workplace satisfaction felt by employees through techniques that involve them in the organization and regulation of work

2.1.2.2 Pluralism

Pluralists differ from unitarists in that they start from a set of assumptions and values

that workplace conflict is inevitable Typical of those holding this perception is the view that business organizations are complex social constructions made up of different interest groups Management and employees constitute two such groups, who, because of the very nature of the factory system, are seen as invariably subscribing to different values and objectives It is also assumed that there will be different sources of authority within an organization, and that the potential for conflict between them will always exist over the organization of work tasks and the allocation of rewards By recognizing the inevitability

of workplace conflict, those holding this perspective tend to regard conflict as necessary for the health of an enterprise as it serves to bring grievances held by workers to the surface

It is also argued that the potential for conflict provides a spur to managers to explore innovative methods for handling it in a way that will produce the best results Acknowledging the existence of competing sources of authority, most notably in the form

of shop stewards or CD, is held by pluralists to offer benefits by allowing organizations to deal with industrial relations issues on a collective basis In this regard, it is argued to not only provide management with the most efficient means for institutionalizing employment rules and minimizing the level of workplace conflict, but to also encourage fairer outcomes

by enabling employees to organize and counterbalance the power of managers when negotiating workplace contracts It is on the basis of these conceptions that pluralists generally accept the legitimate right of employees to bargain collectively and CD to act in this capacity on their behalf (Fox, 1979)

Based on the article of Kim et al (2019), the most famous theory drawing on a pluralist frame of reference is Dunlop’ systems theory, which argues that industrial relations are best regarded as a sub-system of the wider social system The theory holds work to be governed by a wide range of formal and informal rules and regulations, which cover everything from recruitment, holidays, performance, wages, hours, and a myriad of other details of employment It asserts that these rules are what industrial actors try to determine, that their establishment is influenced by the wider environmental context in which the actors operate, and that the actors themselves share an interest in maintaining the processes of negotiation and conflict resolution

Pluralists draw their inspirations from the systems theory devised by Dunlop in 1958 The theory treats industrial relations as constituents of a wider social system They believe that for an organization to succeed there has to be numerous leaders or lines of command

to make sure that one leader does not pursue personal interests at the expense of others Unlike the unitarists who do not see the role of CD in organizations, pluralists believe that

CD plays a significant role in bringing sanity into an organization According to pluralists, organizations are more susceptible to conflicts than harmony Hence, it is illogical to claim that CD is the root cause of conflict witnessed in organizations (Kessler & Purcell, 2003)

In the related theories examined as above, what theory should the current situation in Vietnam be managed? What is the best perspective? The assumption that workplace conflict is avoidable, as the unitarists believe is not true Unitarists teach that organizations need to have a common interest and a single focus of loyalty Nevertheless, this scenario

is not the reality in many organizations Different employees and organizational leaders hold different opinions and have competing interests Consequently, it is hard for any organization to circumvent workplace conflicts Since it is hard for organizational leaders

to do away with competition within the organization, they need to look for ways of exploiting the competition in a profitable way The pluralist managerial perspective offers the best solution for dealing with contemporary organizations including Vietnam In the modern organizations, the workforce comprises people with different cultural backgrounds This diversity makes it hard for employees to share common interests Unitarists claim that CD is the main cause of conflict in organizations and that to avoid conflicts; organizations need to eliminate CD However, CD is not accountable for workplace conflicts Actually, conflict is endemic within the workplaces

2.1.3 The content of TC

According to Vu Thu Hien (2014), the content of TC including TC of jobs, TC about wage and income, TC about working time and breaks, TC about working conditions, TC about the violation of labor contract, TC about labor discipline and finally TC about the signing and implementation of collective labor agreements These contents are in some ways the cause of TC

Firstly, labor dispute of jobs is a dispute about the identification, performance or change of a job between the parties in an employment relationship, including termination

of employment

Secondly, wage and income are one of the top concerns of employees when entering labor contracts with employers According to experts in countries with developed labor markets, disputes over wages and incomes are the highest proportion of disputes, and it

always consumes the majority of the total number of TC which are processed and resolved However, the number of disputes over wages and income is not as great as other disputes such as unilateral termination of labor contracts, disciplinary disputes in Vietnam

Thirdly, TC about working time and breaks It is the conflicts between employers and employees regarding the regulation of working hours, extended working days, night shifts, working overtime, and the failure to arrange reasonable breaks or unsolved absences There are many disputes which happen due to the employees who must work overtime while resting periods are not so many In fact, these TC include two basic types such as reducing work hours and increasing rest periods Normally, reducing work hours and increasing rest periods are considered as the labor right and the interests of the workers and attached to other benefits, the dispute over working hours and breaks is likely to occur in the form of collective TC rather than individual TC

Fourthly, when engaged in labor relations, employees always want to have a safe and convenient working environment to avoid risks Although the regulations on labor environment have been strictly regulated by the labor law and the employers also commit

to provide working conditions as stated in the labor contract, the employers tend to find other ways to reduce operating costs, and they may cut the cost which is occurred for ensuring occupational safety and hygiene Conflicts in labor protection are often expressed

in disputes about claims for work-related accidents or occupational diseases Disputes about social insurance are also one of the disputes related to working conditions Disputes over social security include not only disputes between employees who are working with employers but also disputes between employees who have retired according to the regime with the employer or with the social insurance agency, between the employer and the social insurance agency

Fifthly, TC about the violation of labor contract This is the most common type of labor dispute because a labor contract is the legal form that assure the labor relationship in

a market-oriented economy Therefore, TC about the violation of labor contract refer to other disputes However, TC include disputes over the establishment, execution, alteration, suspension, and termination of labor contracts In short, the disagreement in labor relations

is the basis for the emergence of disputes It is asserted that labor dispute due to the unilateral termination of the labor contract is the largest number of disputes over all other disputes

Sixthly, TC about labor disciplinary action are often represented under the form of layoffs, leading to breakdown of labor relations This dispute arises when the employer issues a decision disciplining the employee because they believe that the employee has committed an act of violation of the internal labor regulations of the enterprise This is a relatively common dispute in the market-oriented economy when the law gives the employer the right to reward and discipline their employees

Finally, TC about the signing and implementation of collective labor agreements The content of a collective labor agreement mentions most aspects of labor relations such as employment, wages, working hours, break and resting periods, labor protection, and social security But disputes over the signing and implementation of collective bargaining are no longer a matter of dispute between individual employee and the employers but dispute between the employers and the group of employees Typically, disputes over the signing and implementation of collective bargaining arises when there is a refusal to negotiate or sign agreements, when negotiating important and pressing issues When there is wrong implementation of the commitments However, in conclusion, it is identified that the collective bargaining agreement is essentially focused on the duration of the agreement and its effectiveness is still low because of the inadequate and improper implementation of the provisions

Now, it is necessary to find out how TC affect individuals, companies, and society There are tangible and intangible impacts of TC to individuals, enterprises, and society

2.2 Impacts of TC

TC at any stage, from small, simple scale to large and complex scale; from space, time, content to type and method, have certain impacts on the production and business situation of enterprises and on political, economic, and social stability If a case occurs within the scope of an enterprise only, it affects the production and business of enterprises

As the case increases in number and scale, it will affect the production and business, and the socio-economic stability of the region in which the industrial park is located and more importantly, will affect political, social, and economic stability of the whole region (Vuong Vinh Hiep, 2014) There are tangible and intangible damages of TC occur to individuals, enterprises, and society

2.2.1 Tangible impacts

When there is a labor dispute, it will certainly affect the production and business of the enterprise First, for businesses, stopped production will not have goods delivered on schedule, resulting in breach of economic contracts, and contracted by the contract Delayed orders will lose customers, and easily be rejected by customers, or ask for discounts Long-term inventory increases costs, and affects quality, suppliers of raw materials will move to sell to other businesses to keep supplies current Equipment that stops production when restarted can consume more fuel and energy and generate more waste If the equipment is damaged, the damage will be higher It is possible that some skilled workers will leave the business after the strike, and the company will have to spend more on recruiting and retraining skills for new workers (Hoang Manh Cam & Liu Jun, 2009)

2.2.2 Intangible impacts

With businesses having a widespread labor dispute, the level of intangible damage will be huge: customers will hesitate to continue trading; the supplier will stop or reconsider the continued supply of raw materials; the relationship between the worker and the employer will be difficult to harmonize one way or the other, and easily break in the future; Recruiting workers will be more difficult and may require a higher salary than the general level After the labor dispute takes place, enterprises will have to spend more time and money to welcome the State inspection delegation to work, to propagate and disseminate the observance of legal provisions (Hoang Manh Cam & Liu Jun, 2009) When you have joined the labor dispute, the worker will take some time to regain the friendly relationship with the manager of the business This heavy psychology also leads

to productivity degradation Workers are more likely to switch to work in other businesses, even with lower wages, but with psychological comfort Employers will be reluctant to recruit well-known workers who have participated in many TC

2.3 Literature review on TC and review results

2.3.1 Literature review on TC

The concept of labor dispute itself is broad therefore the previous studies to be dealt with in this research will review the literatures focusing on the causes of TC In particular,

the author will mainly review the literatures that studied by Korean researchers or analyzed about TC at Korean firms Other research results of overseas researchers will be reviewed for reference purposes

First of all, citing the results of Vuong Vinh Hiep’s research results, especially in Europe, in the context of the global economy movements since the late 1970s, the world labor market fluctuated accordingly The period of mass production driven by Fordism has gradually declined then just in time production and lean production methods have become prevalent These new forms of production immediately affect employees’ interests, and TC may arise if there are no corrective measures Industrial relations researchers conducted studies in different countries to discover and analyze the factors leading to TC and strikes, and to study prevention and handling measures Studies in European countries tend to find out solutions for completing labor laws, settlement of TC through amicable discussion and negotiation In order to limit strikes, European countries have established a fairly open negotiation, conciliation and arbitration procedure The mechanism for resolving TC is very diverse among the members of the European Union The vast majority of countries carry out the procedures of negotiation, conciliation and arbitration in accordance with legal regulations However, some countries decide that only agreement between CD and employers is required (Vuong Vinh Hiep, 2014)

Citing some of the early-stage research in Vietnam, regarding industrial relations, In

1997, Nguyen Ngoc Quan focuses on the industrial relations between employees and employers and solutions for improving the relations However, as the situation of TC and strikes in Vietnam had not been an alarming issue during the period, his thesis did not intend to study in depth on each subject and factors influencing the industrial relations Nguyen Xuan Thu clarified the role of three parties of the State, employees and employers (as cited in Vuong Vinh Hiep, 2014)

Won (1999) studied the causes of TC and effective prevention techniques for Korean companies Before the Korean financial crisis at the end of 1997, TC continued to decrease, but in 1998, the first year after the Korean Financial crisis, the number of TC increased rapidly This is interpreted as a dispute that arises as labor-management conflict intensifies due to corporate bankruptcy, unpaid wages and layoffs that occur in the process of restructuring In particular, the explosion of disputes over rights related to unpaid wages and layoffs caused by economic deterioration led to illegal disputes When TC occur, there

are two types of causes such as internal cause and external cause Firstly, the classification

of external causes is classified into unpaid wages, wage increases, collective agreements and dismissals Disputes related to collective agreements account for two-thirds, and disputes related to wage increase account for only 20% This phenomenon is very different from the situation in the early 1990s, when disputes related to wage increase were about 60% and disputes related to collective agreements were about 20% The reason the cause

of the dispute has changed is that the needs of workers have been diversified into matters other than wages, such as job security, management participation, and the retirement pay system Meanwhile, TC related to wage increase, which have been continuously decreasing since the early 1990s, remained the same at 24% in 1998, the first year of the IMF, but the rate of TC related to collective agreements, which had continued to increase, decreased relatively to 43.4% Instead, arrears of wages, which were considered to have been almost non-existent in the past five years, were due to corporate bankruptcy and bankruptcy due

to the influence of the IMF, resulting in 22 cases in 1998 accounting for 17% of the total became as the economy deteriorates, unpaid wages and layoffs are emerging as major causes of TC Secondly, the classification of internal causes is classified into impersonal treatment, authoritarian management, information hiding, interruption of dialogue and mutual distrust

As a research model directly related to this reserch, Jeremy Brecher’s research model

is widely used in the research model that analyzes the causes of TC The study of factors influencing TC in Tahoe Reno Industrial Zone, US of Jeremy Brecher as below Figure 1

Figure 1: Research model of Jeremy Brecher

Source: Jeremy Brecher (2000)

Low compensation scheme for the

In 2000, Jeremy Brecher conducted the study to investigate factors affecting TC in Tahoe Reno Industrial Park, USA Total 387 workers were asked to answer the questionnaire and finally collected 320 respondents which consist of 252 females and 68 males According to the results, beta coefficients are greater than zero, indicating chosen factors have a positive impact on TC The regression result was TCi = 0.127+ 0.346DKi + 0.163 PLi + 0.149 HBi + 0.107 TNi + ei It was found that in the industrial area of Tahoe Reno Industrial the factor of working condition most affected to TC This is true of the reality in this industrial park where workers are constantly under the pressure of working

in poor working environments As a result, the number of TC in the Tahoe Reno industrial zone has increased due to the harsh working environment in comparison with other industrial parks in the United States Salary factor is analyzed as the least influencing TC because they receive relatively high incomes This model has the advantage of accurately assessing the impact of poor working conditions on TC In this study, R2 = 0.612 means 61.2% of TC are influenced by those four factors and 39.8% are influenced by some factors outside the model

In 2005, Lee et al (2005) studied the structure and characteristics of labor strikes in Korea The labor strikes number were high, and workers went on strike for raised wages until IMF crisis in Korea, after the IMF crisis, strikes increased in relation to collective agreement and the major strikes from 1998 to 2003 have been complicated, distinct from previous simple wage-raising strikes In the cause and background of the strike, there were many strikes for political purposes, including opposition to restructuring, privatization, non-regular workers, negotiation avoidance, and collective agreement delays The solution should be balanced on the principle of labor-management based on market relations, the principle of law and the principle of cooperation to secure social stability

The following studies directly address the issue of TC and strikes As already mentioned above, there are findings on the causes of strikes in the research results of Clarke (2006) According to the investigation results, the Vietnamese authorities are not especially agitated about the problem of strikes, but do see them as a threat to social order and to the attractiveness of Vietnam to foreign investors There has been an on-going discussion about how to reduce the incidence of wildcat strikes which has focused on the complexity

of the legally prescribed strike procedures and the ignorance of those procedures on the part of employers and employees The problem of strikes in Vietnam is not so much that

the legal procedures do not work as that the wildcat strike has proved to be the most effective means for workers to redress their grievances This has been a result of the tolerance, and even support, shown by the authorities for workers who strike to achieve what are regarded as their legitimate interests, but also of the failure of the CD effectively

to represent those interests, particularly in the foreign-owned and domestic private sectors The prevalence of strikes in foreign-invested enterprises in the mid-1990s was attributed

to cultural differences and some notorious strikes were provoked by such things as managers beating workers Also the cause of the vast majority of strikes in Vietnam is legal violations by the employer such as the failure to pay wages and overtime payments, failing

to pay agreed bonuses, forcing workers to work excessive hours, failing to pay social insurance contributions, refusing to pay termination bonuses to those laid-off and demands for improving of the quality of food Finally, most Vietnamese respondents attribute the prevalence of strikes to misunderstandings resulting from poor communications, the complexity of the strike procedure and the ignorance of the law on the part of workers and employers Workers do not know the proper way to pursue their legitimate demands Cho & Kim (2007) presented the trend of industrial relations policy In the research, they tried to find mid and long-term labor policy to improve industrial relations in Korea and reviewed the changes of CD form, and characteristic of TC changes Industrial relations in Korea have historically been characterized by rising relationship conflicts and distrust between employees and employers repeatedly The history of confrontation in industrial relations is at the same time a history of fragmented of central-level labor politics Therefore, the future industrial relations should be designed according to the ‘principle of social integration’ aimed at narrowing the gap between regular and non-regular workers, large and small businesses, between jobs, age, gender, and educational background Another remarkable research model is Jie Shen’s research model The study of factors influencing TC in Shantou Economic Zone of China of Jie Shen as below

Figure 2: Research model of Jie Shen

Job reduction (VL)

Poor working conditions (DK)

Low salary and benefits (TN)

Labor Disputes

H 1

H 2

H 3

Source: Jie Shen (2008)

Jie Shen applied non-probability random sampling method and distributed total 296 questionnaires, then collected and used 287 respondents (212 females, 75 males) for analysis The regression result is TCi = 0.142+ 0.365 TNi + 0.321 VLi + 0.297 DKi + 0.203 HBi + ei It is found that the factor of income is the most affected TC occurrence in the Shantou special economic zone in China The fact is that workers have to work very hard, but their incomes are not enough to cover the expenses of their daily life As most of the companies in this Shantou special economic zone getting lost their cost competitiveness, they had to gradually reduce their staff In such situation, a analyzed by Jie Shen’s model,

it was confirmed that job reduction (or job security in other terms) had the second largest impact among the four main causes in China In the analysis results, beta coefficients are greater than zero, indicating income (salary and benefits), job reduction, poor working conditions and workers’ lack of knowledge of labor laws are all positive impacts on TC Nevertheless, Jie Shen’s research results are similar to the Jeremy Brecher’s research results and Jie Shen’s model reconfirmed three factors such as salary and benefits, working conditions and workers’ perception of law have an effect on TC occurrence

Prior to the 2008 research, Jie Shen conducted a study to investigate that the factors influencing TC and the resolution process in China in 2007

According to the investigation results, TC occur due to the lack of clear regulations and unlimited power granted to enterprise management over employment relations, for instance firms have their own discretionary authorities to decide labor contract terms TC

in China, involve almost all aspects of employment relations such as non-payment or delay

in paying wages, social and unemployment insurance and welfare, dismissals resulting from modification and termination of labor contracts, a lack of health and safety protection

In addition, workers always blame managerial corruption and mismanagement for poor organizational performance resulting in massive workforce reduction Therefore, although corruption and mismanagement are normally not a direct cause of TC, the anger at corruption and enterprise mismanagement therefore are often expressed by workers who

protest against losing jobs and inadequate compensation in the wake of bankruptcy (Jie Shen, 2007)

As a new approach in Korea, Jeoung (2009) studied in her master’s thesis that the relationship between Vietnam labor law and TC and seeks ways to resolve TC In the thesis, there is a definition of a labor dispute A labor dispute is a dispute over rights and interests between an employer and workers and workers' organizations However, in reality, not all differences of opinion on rights and interests lead to TC In other words, a difference of opinion between the two parties is regarded as a labor dispute only when both parties refuse

to negotiate or negotiate but there is no mediation, or when one of the parties requests the relevant authorities to protect their rights According to the Vietnam Labor Law, these are classified into rights disputes and interest disputes Disputes shown in the action as a means

of realizing such TC includes strike, sabotage, boycott, picketing and lockout Among them, the main disputes’ action occurring in Vietnam is strike

In the conclusion section, this thesis presented five causes in relation to the Vietnam labor law (Jeoung, 2009) Firstly, the Vietnam Labor Law has been amended three times since its enactment with the purpose of minimizing the gap between the law and reality by reflecting the changing industrial relations The amendment was aimed to strengthen the protection of workers’ rights and interests and clarify the rights, interests, responsibilities and duties of employers However, the ambiguity of the law allows employers to commit obvious violations within the framework of labor laws, such as violating the rights and interests of workers and avoiding the employer’s responsibilities and obligations Secondly, there are many causes of TC in Vietnam, but the biggest one is the CD The Vietnam Labor Federation, Vietnam’s national CD, has limitations in its identity due to its characteristics as a political and social organization as well as a sub-organization of the national organization called the Fatherland Front Due to these limitations, it is not yet possible to actively represent the voices of workers Thirdly, the employer’s violation of the Labor Law such as payment of social insurance by setting a basic wage lower than allowance, and repetition of eleven months of work to avoid payment of severance pay Fourthly, the workers' lack of understanding about labor laws affected illegal strikes that did not follow the procedures stipulated by the law In order to overcome these limitations

of workers, workers should not only become familiar with labor laws, but also make efforts

to aware market economy Finally, the lack of the government authorities’ mediation and

supervision role also one of the weak points of current Vietnam labor law It will be necessary to supplement how the role can be played

The remarkable research of Duong Van Sao (2009) specifically analysed the causes

of TC through regression analysis Duong Van Sao conducted a study on the factors affecting TC in Bac Giang industrial zones from 2006 to 2009 to find out the factors and the level of impact on TC occurrence The published research results showed that incomplete legal system, poor social responsibility, low incomes, inefficient performance

of CD, poor integration of managers (employers) affecting labor dispute occurrence The study of factors influencing TC in industrial zones of Bac Giang province of Duong Van Sao as below Figure 3

Figure 3: Research model of Duong Van Sao

Source: Duong Van Sao (2009)

The regression result was TCi = 0.254+ 0.264 PLi + 0.285 TNXHi + 0.394 TNi + 0.215 CDi + 0.304 HNi + ei It was found that in the industrial zones, low income has the greatest impact on the issue of labor dispute, followed by the factor of employer’s low integration with workers Especially, the managers (including directors, employers) of Taiwanese and Korean firms often scolding and disrespectful of workers, which causes tension in labor relations

Low wages and benefits (TN)

Incomplete legal framework (PL)

Do Quynh Chi et al (2009) also provided the answer to the cause of TC The studied model of the factors influencing TC at Minh Hung industrial park as below

Figure 4: Research model of Do Quynh Chi et al

Source: Do Quynh Chi et al (2009)

This research aims to find out the factors influencing TC in the Korea-based Minh Hung Industrial Park The sample size of the study was 250 workers answering the questionnaire Data and information collected were analyzed through SPSS analysis to find out which factors affected the occurrence of labor dispute According to the results, poor management skills, low educational level of the employees, low income and poor compensation schemes have a positive impact on TC occurrence

The regression result is TCi = 0.257+ 0.129NLi + 0.351 HVi + 0.297 TNi + 0.323 PLi + ei The low educational level had the greatest influence on causing TC It was found that the low educational attainment had the greatest influence on causing TC The fact is that in this industrial zone, due to their lack of understanding about how to resolve disputes, they often acted even though it could be resolved through dialogue and compromise What

is unique about the results of this study is that poor management skills have the least affected on TC Explaining this result, the study found that the key top management at the

39 companies in the park were professionals who were recruited by their management experience from other companies, they experienced many positions so there were no major difficulties in the management of the company

Jan et al (2009) are the co-authors of the book titled Vietnam - Handbook of Industrial Relations that was published by the Bureau for Employer’s Activities in Vietnam under VCCI The book presents the environment of industrial relations, characteristics of

Low education level of the

employees (HV)

Low wages and benefits (TN)

Poor management skills (NL)

Vietnamese employees, good management practices of human resources in Vietnam for foreign investors, law provisions on labor, industrial relations and strike handling in Vietnam The book states that most of the strikes took place without prior consultation with relevant CD and failed to follow the legal procedures specified in the labor law In cases where CD is involved from the outset, employers respond to employees’ requirements prior

to actual strikes happening

With respect to research on tripartite relations, there is a typical research result for analysis of tripartite relations among the State, employers and employees in market economic conditions The research evaluated the situation of tripartite relations in Vietnam

in terms of the role of the Socialist State, the role of VCCI and the role of CD At the same time, the researcher proposed a system of stable solutions for harmonious settlement of industrial relations in the market economic conditions in Vietnam (Nguyen Viet Vuong, 2010)

Le Thanh Sang et al (2010) conducted the study on industrial relations and TC at three industrial parks and export processing zones such as Linh Trung (Ho Chi Minh City), Song Than (Binh Duong), and Bien Hoa (Dong Nai) The research clarified the nature and content of the TC, TC and the roles of parties, taking in to account the causes of TC from enterprises, employees, the role of CD, government, other institutions and coordination of the parties

Continuing Lee & Kim (2010) researched the status of industrial relations and the causes of TC at Korean FDI firms in Vietnam The causes of TC can be broadly divided into pay-related such as the payment of wages, allowances and bonuses, and non-pay-related issues such as labor contracts, working environment, and relationships with managers According to the results, TC are mainly caused by dissatisfaction with wages (including increase wage) and demanding improvement of working conditions Another cause is a demand for additional allowance paid in addition to the normal salary when the environment is poor or dangerous, or when working on a holiday Also, the complaints about delayed payment of wages, requests for disclosure of information about the wage and benefits system, and dissatisfaction about annual leave Regarding manager issues, the poor management skills, disregards and non-involvement of Korean managers are the main cause of TC occurrence at Korean firms too They described the poor management skills

of many Korean managers who insisted on coercive, directive, and top-down Korean style

of management to the Vietnamese workers Vietnamese workers think their Korean managers disrespect Vietnamese people and their culture so that TC are occurring even for small problems In addition, the low level of education of Vietnamese workers is also a problem It is easy to make disputes due to lack of legal understanding or knowledge about rights and duties

In addition to the above studies, there are still many studies on the causes of TC Therefore, the author briefly summarized the results of their studies hereafter Kwon (2010) analyzed the influencing factors of TC at his labor management seminar There are five main factors including low wage, compensation and benefits, shortage of jobs, working conditions and communication barrier Communication barriers arise from language differences between Korean managers and Vietnamese staff, his finding is the same as Chae’s results (Chae, 2013) According to Chae (2013), major influencing factors on TC are wage level, performance of CD and organizational communication (including cultural differences)

In 2011, Nguyen Duy Phuc (2011) defended his doctoral thesis with the research topic the creating and promoting healthy industrial relations in small and medium-sized enterprises in Hanoi The author studied and analysed the current status of industrial relations in small and medium-sized enterprises in Hanoi, analysing the industrial relation capacity of partners, the attitudes of industrial relations actors at workplace, interaction mechanism among the parties in industrial relations, industrial relations standards, results

of interaction between industrial relations actors The research raised a number of orientation viewpoints and proposed solutions for the State, the CD system, employers’ representative organizations and enterprises in creating and promoting healthy industrial relations in small and medium-sized enterprises in Hanoi The thesis employed such research methods as statistical analysis method, synthesis and comparison method, expert method, modelling method and sociological survey method The limitation of the project

is that in-depth research is not conducted to identify factors creating healthy industrial relations as well as factors influencing TC

KOTRA (2011) also presented the causes of TC at Korean FDI firms in Vietnam The main causes of strikes are low wage compared to inflation, excessive overtime, and unfair dismissals According to KOTRA, there are some characteristics of strikes at Korean FDI firms The occurrence of strikes is spreading regardless of time and industry, and most of

them are illegal strikes Strikes occurred mainly in the textile and garment industries before and after the Lunar New Year, but recently strikes have been occurring at any time, and have spread to industries (machinery, electronics) where wages have been considered higher than other industries The majority of strikes in Vietnam are illegal, as they often occur suddenly by strike leaders The majority of workers do not understand illegal strikes under the Labor Law, and they perceive that demands through strikes are better accepted than through dialogue with employers Most of the Korean companies are concentrated in the industrial parks, and there are many cases of strikes leading to a chain strike as the nearby companies are often in the same industry

Feng Xi Liang (2011) proposed three solutions to reduce TC occurrence Strengthening the reconciliation process within the company could reduce the occurrence For this, the company should establish of internal regulations, improving managers’ abilities to handle labor issues, and the development of harmonious activities between company members The second solution is the reconciliation process in the industrial zone

to which the company belongs should be strengthened The third solution is to strengthen the workers own perceptions about laws and the process of reconciliation

According to Do & Broek (2013), until 2006, industrial action in Vietnam generally emerged as a result of employers failing to respect workers’ rights or work within the law However, in the period after 2006, wildcat strikes reflected a shift from ‘rights-based’ to

‘interest-based’ concerns, with the proportion of strike demands for higher wages (including bonuses) and better working conditions exceeding demands for rights Also related to CD, the strike-prone provinces were the first to voice their criticism of weak enterprise unions as one of the major causes of workplace conflicts Employers in strike-prone companies were also unhappy that enterprise union officials had no advance knowledge of workers’ strikes, and during strikes the enterprise unionists were not able to represent workers in negotiations with employers In the conclusion, they proposed a solution to reduce strikes Low unionisation rates in the private sector have been identified

by the government agency as a contributing cause of wildcat strikes Upon the assumption that strikes are less likely to happen in unionised enterprises, the government agency has made the spread of unions in foreign-owned and private domestic companies a priority

In Kazakhstan, where has adopted a market economy system from the socialist economy system, there are also studies on the analysis of the causes of TC Beissenova et

al (2013) researched labor conflicts in Kazakhstan with some specific character of their solutions By virtue of differentiation of social structure of the Kazakhstan society, diversity of economy, and of some other objective reasons, recently observing growth of social conflicts, including TC Strike of petroleum experts in the Western Kazakhstan in

2012 and the miners’ strike in the Central Kazakhstan speak that the interests of the certain groups of the population, workers in particular, are not considered, which in turn leads to the increase of a level of social tension not only in regions sphere, but also in a society as

a whole In the study an analysis of the role of each participant of labor process, a specific character of their behavior in business of achievement of the objectives and satisfactions

of the demands According to the results, in Kazakhstan there are no operating mechanisms for the solution of labor conflicts, technologies on settlement of TC with participation of all parties of labor process As described, there was a clash between striking oil workers and police of the city in West Kazakhstan The strikers are unhappy with wages and working conditions In the study mentioned there were no TC in the Soviet period, but after

1989 thousands of miners strikes happened Those disputes are the result of unresolved problems filling up for a long time, some of them have a long history of several years with the independence of Kazakhstan from the USSR In reforming the social and labor relations

in Kazakhstan adopted a number of laws to ensure order in the relationship between employers, employees, self-employed and the state but there are still in many ways of Soviet style in their legal system which cannot solve these TC

A unique approach that the role of CD affects TC is found in Jeoung (2013b)’s research results Jeoung (2013b) analyzed the conflicts of legal rights and interests between employers and employees inevitably have caused TC and strikes The main cause of strikes lies in the failure of the CD at enterprise level effectively to represent the rights and interest

of employees CD at enterprise level need to play a role not only in representing the legal rights and interests of employees but also in regulating conflicts and mediating between employers and employees

Finally, Kim et al (2014) investigated Korean multinational corporations’ human rights practice In the field investigation report, there are several factors affecting TC occurrence The first cause is wage and bonuses The results explained that the strike in

2014 happened because of low wages, no pay raises for long-term employment, and the failure to provide promised bonuses Cases involving nonpayment and delay of wages were

also identified The second cause is working conditions including guarantee of breaks and overtime There are many complaints against the restrictions on the use of break times and excessive overtime work as one of the reasons for strikes at Korean firms The third cause

is degrading treatment of workers Korean middle managers are also involved in degrading treatment of workers The report explained that the strike in 2014 happened in part because some Korean managers had insulted employees by yelling when criticizing workers and dumping out a whole basket of products to the floor when there is a problem with the product The fourth cause is labor contracts, layoffs and social insurance Some cases in which problems arose because a labor contract was not concluded after an employee performed labor for a set period of time, as well as unlawful dismissal cases There were several cases in which problems arose because an employer had not joined the social insurance schemes at all The fifth cause is meals and accommodation One of the issues

at Korean firms is the provision of low-quality food and substandard meals are one of the causes for TC In 2013, more than a thousand workers at the Korean firm were hospitalized because of food poisoning The sixth cause is discrimination and protection of motherhood The seventh cause is CSR The Korean firm located in Viet Yen District of Bac Giang had installed a massive coal steam furnace, without any preventive devices for noise and pollution, next to a residential area They operated this furnace for 24 hours, harming local residents by exposing them to coal smoke, coal dust, and noise Furthermore, the wells nearby were polluted by industrial waste from the firm, forcing residents to buy water since they were no longer able to drink from the wells

Then Vuong Vinh Hiep (2014) in his thesis not only addresses the factors influencing

TC and strikes, but also proposes solutions for dealing with influencing factors to prevent and solve TC and strikes

Figure 5: Research model of Vuong Vinh Hiep

H 4

H 2

H 1

H 3

Attitudes and Perception (QD)

Knowledge of Labor Law (HB)

Labor Disputes

Organizing and Management (NL)

Relationship with employers (SD)

Source: Vuong Vinh Hiep (2014)

TC and strikes in industrial parks in Khanh Hoa province began to be anticipated, which become the rising concerns year by year, aimed to find out the factors influencing

TC in Khanh Hoa province The important role of this research is that various solutions were presented to labor policy maker, labor management agencies, managers and workers This research aims to find out the factors influencing TC in Khanh Hoa province The sample size of the study was 583 workers answering the questionnaire The workers answering these questionnaires are currently working at industrial park of Khanh Hoa province Data and information collected were analyzed through SPSS analysis to find out which factors affected the labor dispute

The regressions result is TCi = -0.284 + 0.101HBi + 0.074QDi + 0.074NLi + 0.127SDi + 0.111HNi + 0.075MTi + 0.342TN + 0.180PLi + ei Same as other referenced studies, low wage and benefits are the first and second factor that causes TC In particular,

in this study SD factor (relationship with employers or managers) is an important cause of

TC occurrence in the parks This study analyzed the importance of relationships with employers that create situations in which the employer does not actively advocate for union activities, make issues related to CD’s fees, or do not accept workers’ demands and suggestions This failure by employers is the third factor that caused TC Despite these efforts of employing new concepts, his regression model explanatory power is R2 = 0.561 Means that the cause of TC with the variables can explain only 56.1% in the model and there are more factors those not used in this study

Siu & Chan (2015) analyzed strike wave in Vietnam In the article, they presented evidence to prove the reasons for strike action to have become a normal in Vietnam For migrant workers having difficulty meeting their basic costs of living with the low wage