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Migrant workers in economic integration in Vietnam

Migrant workers in economic integration in Vietnam. What are the impacts of economic integration and free trade to the migrant workers?. NGO HUONG, FOUNDER CENTER FOR DEVELOPMENT AND INTEGRATION, www.cdivietnam.org. Outlines. Free Trade and Economic integration in footwear and garment sectors

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Migrant workers in economic integration in Vietnam

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  1. Migrant workers in economic integration in Vietnam What are the impacts of economic integration and free trade to the migrant workers? NGO HUONG, FOUNDER CENTER FOR DEVELOPMENT AND INTEGRATION,www.cdivietnam.org

  2. Outlines • Free Trade and Economic integration in footwear and garment sectors • Key findings of researches on migrant workers • CSR in the context • Key Recommendations

  3. Vietnam - Economic integration progress Vietnam now on the way of: • Renovation and the transition to the market economy • Process modernization and industrialization • Emergence development of private sector (and process equitation of SOE) • Integration into global and regional markets (global trade facts and WTO…) HOPEFULLY COMING by END 2006 Vietnam to cope with the social impacts on WTO ACCESSION

  4. Balancing economic growth and social equity • Economic integration opens for more market, increase competitiveness and competitive advantages for Vietnam’s industries • Private sector grow faster under the support of the Government, Associations • However, social issues emerge like rapid labor mobility from rural to urban, workers lack of knowledge, skills; poor living and working conditions. etc.

  5. Impact of growth to poverty reductionGarment and footwear sector These two sectors contribute to economy: • Garment export shares to total Vietnam export is 14-16% and Footwear is 9-10% (2004-2006) • But... 60 –70% labor come from rural areas and agricultural sectors. Migrants growth at about 25-50% over 3-5 years now • Female labor account for more than 80% • Labor increase 15- 40% during 2000- 2004

  6. Why growth not sustainable? Labor with low educational level, migrated and unstable Severe competitive on production technology and labor skills levels High risk of lost jobs (for workers) and lost labors (for employers)

  7. Facts and figuresJOB AND LABOR … • 85-90% FEMALE, about 30-50 % are MIGRANTS and turnover rate ranges from 35-40% • Open recruitment but migrants need to pay for employment services and fees due to lack of job information • Improvement in contract and insurance commitment by employers • Salary ranges from low to extremely low (50% workers in Hai Phong and 22% in Hanoi reported income less than $1/day), and penalties applied in many cases reduce incomes • A large gender gap existed (due to unskillful level of migrant female workers) And... 1/3 strikes and labor disputes (2002-2004) due to low wage, ¼ due to low bonus, ¼ due to long working hours, 1/6 due to no pay for overtime

  8. CEDAW...Convention on the Elimination of All Forms of Discrimination Against Women and more...Discrimination (Employment and Occupation) Convention, 1958...(International Labor Standards) ...to eliminate discrimination against women in the field of EMPLOYMENT in order to ensure, on a basic of equality of men and women, the same rights...

  9. LIVING CONDITIONS … • Very poor in basic living conditions in dormitory and rented houses: lack of clean water, unsanitary and unsecured, vulnerable to HIV/AIDS. • Migrant workers lack of community support, limited access to local health services, education and community social activities. “We do not plan to continue their present jobs in the long term in cities...” Many migrant workers say...

  10. WORKING CONDITIONS... • but still LONG WORKING HOURS (77-83% works from 8-12h/day) • Reported abusive behavior (physical and verbal abuse in many foreign invested companies) • Work place is seen “negative” or very negative, unsafe and unhealthy to workers with heat, dusk, gases, lack of sanitation facilities, lack of drinking water • Limited roles of Trade Unions at workplace, attention on information dissemination rather than labor disputes “Wildcat” Strikes occured before 2001 was due to abusive behaviour, now, strikes turn to be more economic oriented for higher salary, bonus and shorter working hours , and due to lack of COLLECTIVE BARGAINING CAPACITY. (ILO, 2005)

  11. Vietnam to exercise Basic Rights of Decent work for laborers, workers towards Occupational Safety and Health Convention, 1981 (ILO)

  12. Source: Survey in Hai Phong, ActionAid, 2003

  13. Lack of social capital makes female migrant workers more vulnerable .. • Lack of information • Far away from home • Lack of physical and spiritual support • Unhygienic food • Lack of basic entertainment • Insecurity • Lack of educational and health services Voices of migrant female workers

  14. CEDAW (article 12,13,14)... TOWARDS EQUAL RIGHTS FOR Health Care and family planning Economics and Social benefits Rural women

  15. The impacts are negative… • Low investment on working conditions and long working hours have NEGATIVE impacts to WORKERS’ HEALTH and PRODUCTIVITY • Low wages and bonus and uncompliance with Labor Code created labor disputes and strikes which have NEGATIVE impact on PRODUCTION and LABOR FORCES • More jobs offered but Unstable • The recent Anti-dumping initiated by EC will probably put half a million laborers in Footwear sector at job risks..

  16. Free Trade creates shocks to migrant female workers WHERE WILL THE MIGRANT WORKERS GO? “ Return home and back to agricultural work”... many choose “ Not stay long at jobs”...many says... “ Unemployment and fall back to poverty”... many fears Especially to those in footwear sector

  17. Corporate Social Responsibility (CSR)– A tool to sustainable economic integration - • CSR that.... increases the labor productivity, effectiveness and profits of enterprises • CSR that... Improves management and employer – employers’ relations • CSR that ... helps the enterprises gain the more trust and markets of consumers and buyers • CSR that ... retains the labor forces for more safety and healthy environment, workers living conditions • CSR that.... contribute to poverty reduction

  18. Some policy recommendations • Develop skillful labor forces • Reinforce corporate responsibility for social benefits for workers through labor inspection: insurance, contracts, better working conditions • Clearer and consistent in legal framework: Amended Labor Code, Law of Enterprise, Tax Law.. • Improve tripartite dialogues: government, employers, trade unions .. by Guideline and practices • Market institutions to facilitate enterprises in economic integration • Information provision

  19. The researches/studies available • Research on migrant workers in 5 provinces (ActionAid Vietnam, 2003-2005) • Survey in CSR practices in footwear and garment sector (MOLISA –WB, 2004) • Research on impact of anti-dumping proceeding by EC on Vietnam footwear industry (LEFASO- ActionAid, 2006) • Trade liberalization and its impact on leather footwear and garment industries in Vietnam (Center for Development and Integration, Jul 2006) • Strikes and Labor Relations in Vietnam (ILO, 2006)

  20. Thank you! For more information on CSR in Vietnam, please visit website www.vietnamforumcsr.net

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