Identifier
Created
Classification
Origin
01HANOI1026
2001-05-02 08:43:00
CONFIDENTIAL
Embassy Hanoi
Cable title:  

SOME HILL STAFFERS PUT HIGH PRIORITY ON WORKERS RIGHTS DURING RECENT VISITS TO VIETNAM

Tags:  ELAB PREL PHUM ETRD VM LABOR 
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 2001HANOI01026 - CONFIDENTIAL
 
 
 
 CONFIDENTIAL PTO8868

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ACTION DRL-02 

INFO LOG-00 NP-00 ACQ-00 CIAE-00 COME-00 DODE-00 DS-00 
 EAP-00 EB-00 FBIE-00 VC-00 TEDE-00 INR-00 IO-00 
 LAB-01 VCE-00 NSAE-00 OES-01 OIC-02 IRM-00 SSO-00 
 SS-00 STR-00 TRSE-00 USIE-00 DSCC-00 NFAT-00 SAS-00 
 /006W
 ------------------E6F057 031512Z /68 
FM AMEMBASSY HANOI
TO SECSTATE WASHDC IMMEDIATE 2723
INFO DEPTLABOR WASHDC IMMEDIATE
NSC WASHDC
C O N F I D E N T I A L HANOI 001026 

SIPDIS

STATE FOR DRL/IL, EB/TPP/BTA/ODC AND EAP/BCLTV
STATE PASS TO USTR/ CAROYL MILLER AND JOE DAMOND
USDOL FOR ILAB/ JPERLMUTTER, RSHEPARD, GRUSSELL,
NSAYRES
NSC FOR THE EAST ASIA DIRECTORATE

E.O. 12958: DECL: 05/03/2011
TAGS: ELAB PREL PHUM ETRD VM LABOR
SUBJECT: SOME HILL STAFFERS PUT HIGH PRIORITY ON WORKERS RIGHTS DURING RECENT VISITS TO VIETNAM

REF: HANOI 0641
CONFIDENTIAL

PAGE 02 HANOI 01026 031511Z

C O N F I D E N T I A L HANOI 001026

SIPDIS

STATE FOR DRL/IL, EB/TPP/BTA/ODC AND EAP/BCLTV
STATE PASS TO USTR/ CAROYL MILLER AND JOE DAMOND
USDOL FOR ILAB/ JPERLMUTTER, RSHEPARD, GRUSSELL,
NSAYRES
NSC FOR THE EAST ASIA DIRECTORATE

E.O. 12958: DECL: 05/03/2011
TAGS: ELAB PREL PHUM ETRD VM LABOR
SUBJECT: SOME HILL STAFFERS PUT HIGH PRIORITY ON WORKERS RIGHTS DURING RECENT VISITS TO VIETNAM

REF: HANOI 0641
CONFIDENTIAL

PAGE 02 HANOI 01026 031511Z


1. (U) CLASSIFIED BY ECONOMIC COUNSELOR ROBERT W.
DRY, REASON 1.5 (B) AND (D).


2. (C) SUMMARY: RECENT CONGRESSIONAL VISITS TO
VIETNAM GAVE HIGH PRIORITY TO LABOR ISSUES. IN
MEETINGS WITH VIETNAMESE OFFICIALS AND THE ILO, THE
VISITORS HEARD WHAT VIETNAM IS DOING TO MOVE FORWARD
IN WORKERS RIGHTS AND WHAT MORE VIETNAM PLANS FOR THIS
AREA. SEVERAL STAFFERS SYMPATHETIC TO THE LINKAGE OF
LABOR OBLIGATIONS AND TRADE AGREEMENTS FOCUSED ON
DEVELOPING IDEAS ON HOW THIS MIGHT BE ACCOMPLISHED IN
THE VIETNAMESE CONTEXT. THEY LEARNED FROM THEIR
DISCUSSIONS THAT ANY SUCH EFFORTS WOULD BE A
DIFFICULT, IF NOT IMPOSSIBLE, UNDERTAKING WHICH WOULD
LIKELY JEOPARDIZE VIETNAM'S PROGRESS ON TRADE
LIBERALIZATION AND OUR ABILITY TO MOVE THE VIETNAMESE
FORWARD ON LABOR ISSUES IN THE CHANNELS WE CURRENTLY
HAVE. NONETHELESS, WE FOUND LISTENING TO THEIR
CONCERNS USEFUL. ON THE OTHER HAND, WE ARE A BIT
CONCERNED HOW THE GVN WILL INTERPRET THIS RATHER
CANDID DISCUSSION ABOUT THE NEED FOR LABOR PROGRESS BY
CERTAIN MEMBERS OF CONGRESS. THE GVN'S GOAL IS TO SEE
THE BTA RATIFIED AS EXPEDITIOUSLY AS POSSIBLE. THE
LABOR DISCUSSION MAY HAVE FURTHER HEIGHTENED ANXIETY
ABOUT THE TIMING OF BTA RATIFICATION. END SUMMARY.


3. (U) POST HOSTED A VISIT BY REP. PHILIP CRANE (R-
IL) APRIL 10-15 AND A STAFF DELEGATION LED BY EARNEST
"CHUCK" CHARLES ATKINS, CHIEF OF STAFF FOR REP. BART
GORDON (D-TN) APRIL 15-19. DURING BOTH OF THESE
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PAGE 03 HANOI 01026 031511Z
VISITS, LABOR ISSUES AND WORKERS' RIGHTS WERE GIVEN
HIGH PRIORITY. (SEE SEPTELS FOR OTHER REPORTS ON THE
DELEGATIONS' VISITS.) VIETNAMESE OFFICIALS RESPONDED
BY ARRANGING SURPRISINGLY HIGH LEVEL MEETINGS GIVEN
THAT MOST SENIOR OFFICIALS WERE THEN DEEPLY INVOLVED
IN IMPORTANT MEETINGS IN THE RUN-UP TO THE NINTH PARTY

CONGRESS. REP. CRANE AND HIS DELEGATION MET WITH THE
FIRST VICE MINISTER FROM THE MINISTRY OF LABOR,
INVALIDS AND SOCIAL AFFAIRS (MOLISA) MR. NGUYEN LUONG
TRAO, AS WELL AS THE DIRECTOR OF THE ILO HANOI OFFICE,
MS. ROSEMARIE GREVE. INTERESTED MEMBERS OF THE
STAFFDEL ALSO MET WITH MR. TRAO AND MS. GREVE. IN
ADDITION, THEY MET WITH VICE CHAIRMAN DR. DANG NGOC
CHIEN OF THE VIETNAM GENERAL CONFERDERATION OF LABOR.


4. (SBU) THE DELEGATION MEMBERS THAT TOOK THE
GREATEST INTEREST IN THE WORKERS RIGHTS TOPIC WERE
STAFFDEL MEMBER MR. TIM REIF, DEMOCRATIC CHIEF TRADE
COUNSEL, AND CODEL MEMBER MS. VIJI RANGASWAMI,
DEMOCRATIC TRADE COUNSEL, BOTH OF THE HOUSE WAYS AND
MEANS COMMITTEE. BOTH WERE ATTEMPTING TO GATHER
INFORMATION TO SUPPORT A PLAN TO LINK PASSAGE OF THE
BTA TO VIETNAMESE AGREEMENT TO NEGOITATE A DOCUMENT,
PREFERABLY A TEXTILES AGREEMENT, WHICH WOULD OBLIGATE
VIETNAM TO IMPROVE ITS PROTECTION FOR WORKER RIGHTS,
THEREBY BRINGING IT MORE CLOSELY INTO LINE WITH
INTERNATIONAL LABOR STANDARDS. MS. RANGASWAMI TOLD
POST'S LABOR OFFICER PRIOR TO EMBASSY'S COUNTRY TEAM
MEETING, THE OPENING EVENT OF MR. CRANE'S VISIT, THAT
HER GOAL WAS TO 'FIND A SOLUTION' TO THE VIETNAM
'LABOR ISSUE' DURING THE TRIP.
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PAGE 04 HANOI 01026 031511Z


5. (SBU) MS. ANGELA ELLARD, STAFF DIRECTOR FOR THE
WAYS AND MEANS COMMITTEE, ALSO PARTICIPATED ACTIVELY
IN THE LABOR-ORIENTED PORTION OF THE SCHEDULE, SHAPING
QUESTIONS THAT DREW ATTENTION TO WHAT THE VIETNAMESE
WERE DOING THEMSELVES TO MAKE PROGRESS IN THIS AREA,
AS WELL AS THE WORK THAT IS BEING DONE UNDER OUR
BILATERAL MEMORANDUM OF UNDERSTANDING (MOU)ON LABOR
COOPERATION AND DIALOGUE. IN THE MEETING WITH MOLISA
VICE MINISTER TRAO, SHE SAID THAT MEMBERS BELIEVED THE
MOU WAS AN "EXCELLENT BASIS FOR MOVING FORWARD ON
LABOR ISSUES". MIKE MESSMER, STAFFER FOR RICHARD
GEPHARDT (D-MO),ALSO PARTICIPATED IN THE STAFFDEL'S
LABOR MEETINGS.


6. (U) WE THOUGHT BOTH MEETINGS WITH MOLISA VICE
MINISTER TRAO WENT WELL. AFTER BRIEF INTRODUCTORY
REMARKS, TRAO INVITED THE VISITORS TO POSE QUESTIONS.
AFTER LISTENING TO A SERIES OF QUESTIONS, HE DEFTLY
ADDRESSED THEM WHILE PROVIDING INSIGHT INTO THE GVN'S
EFFORTS TO REFORM AND IMPROVE THE LABOR LAW AND
WORKERS PROTECTIONS. IT WAS CLEAR FROM HIS
PRESENTATION THAT, WITH OVER A MILLION NEW ENTRANTS
INTO THE JOB MARKET ANNUALLY, HIS GOVERNMENT GAVE TOP
PRIORITY TO EMPLOYMENT GENERATION. BUT, HE ALSO MADE
IT CLEAR THAT THE GOVERNMENT TOOK AN INTEREST IN THE
QUALITY OF THOSE JOBS AND IN THE MANNER WORKERS WERE
TREATED ON THE JOB. HE TOLD BOTH DELEGATIONS THAT THE
GVN WAS CIRCULATING FOR COMMENT DRAFT AMENDMENTS TO
THE LABOR CODE WHICH WILL BE SUBMITTED FOR REVIEW TO
THE NATIONAL ASSEMBLY IN MAY. AND, IF ALL GOES WELL,
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PAGE 05 HANOI 01026 031511Z
IT WOULD BE SUBMITTED FOR FINAL ASSEMBLY APPROVAL BY
MAY 2002. HE ALSO NOTED THAT VIETNAM WAS AN ILO
MEMBER, HAD RATIFIED 15 CONVENTIONS, THREE OF WHICH
WERE CORE CONVENTIONS, AND THAT VIETNAM PLANNED TO
RATIFY TWO ADDITIONAL CONVENTIONS IN THE NEAR FUTURE,
INCLUDING CORE CONVENTION NO. 138 ON THE MINIMUM AGE
FOR WORK. MOREOVER, HE SAID HIS GOVERNMENT WAS FULLY
AWARE OF THE NEED TO STUDY RATIFICATION OF THE
REMAINING CORE CONVENTIONS AND, WHERE THE GOVERNMENT
IS NOT YET IN COMPLIANCE, TO BEGIN INCORPORATING THEIR
OBLIGATIONS INTO THE DOMESTIC LABOR SYSTEM. TRAO
SPOKE HIGHLY OF INITIAL PROGRESS UNDER THE U.S.-
VIETNAM MOU AND SAID THAT HIS GOVERNMENT LOOKED
FORWARD TO THE COMPLETION OF THE SPECIFIC PROJECT
PROPOSALS DEVELOPED IN MARCH (REF) THAT WOULD BREATHE
LIFE INTO THE PROJECT PLAN. HE STRESSED HIS
APPRECIATION FOR THE "COOPERATIVE APPROACH" ON LABOR
ISSUES.


7. (SBU) IN THE STAFFDEL MEETING WITH TRAO, TIM REIF
NOTED THAT THE U.S. HAD INCLUDED LANGUAGE ON TRADE AND
LABOR STANDARDS IN RECENT TRADE AGREEMENTS, INCLUDING
THE FREE TRADE AGREEMENT WITH JORDAN AND THE TEXTILES
AGREEMENT WITH CAMBODIA. HE ADDED THAT MANY MEMBERS -
NAMING CHARLES RANGEL (D-NY) AND GEPHARDT,
SPECIFICALLY - EXPECT THAT ONE OF THESE WILL SERVE AS
A MODEL FOR "HOW WE DEAL WITH THE LABOR STANDARDS
ISSUE WITH VIETNAM." FURTHERMORE, HE SUGGESTED IN
THIS MEETING AND OTHERS THAT RESOLUTION OF LABOR
ISSUES WAS REQUIRED BEFORE THE U.S.-VIETNAM BILATERAL
TRADE AGREEMENT (BTA) WOULD BE SENT TO THE HILL FOR
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PAGE 06 HANOI 01026 031511Z
APPROVAL (SIC). TRAO EXPRESSED GRATITUDE FOR MEMBERS'
FOCUS ON VIETNAM'S LABOR REGIME. BUT, HE SAID HE WAS
SURE THAT WHEN MEMBERS AND THEIR STAFF STUDIED
VIETNAM'S "PROGRESSIVE" LABOR CODE THEY WOULD BE
CONVINCED TO SUPPORT THE BTA. HE PLEDGED TO WORK WITH
THE U.S. TO PROVIDE INFORMATION THAT WAS NEEDED ON
VIETNAM'S LABOR REGIME IN PREPARATION FOR THE VOTE ON
THE BTA'S PASSAGE IN CONGRESS.


8. (C) AFTER THE MEETING, KEY MOLISA CONTACT NGUYEN
MANH CUONG (PLEASE PROTECT) REMARKED PRIVATELY TO
ECONOFF THAT TRAO'S REMARKS WERE INTENDED TO CONVEY
THE MESSAGE THAT THE GVN WOULD NOT AGREE TO CHANGES IN
VIETNAM'S LABOR REGIME AS CONDITIONS FOR APPROVAL OF
THE BTA. FURTHER, HE WARNED THAT, IN HIS OPINION, ANY
LINKAGE OF LABOR TO ANY FUTURE TRADE AGREEMENT,
INCLUDING THE TEXTILES AGREEMENT, WOULD BE
"IMPOSSIBLE" AND MIGHT JEOPARDIZE NOT ONLY CONCLUSION
OF THAT AGREEMENT BUT ALSO VIETNAM'S OWN APPORVAL OF
THE BTA. EVEN WORSE, HE FEARED THAT SUCH ACTION MIGHT
INDUCE A DECISION TO SLOW OR HALT THE COOPERATION ON
LABOR ALREADY UNDERWAY.


9. (U) ILO HANOI DIRECTOR GREVE BRIEFED THE
DELEGATIONS ON THE ILO'S VIEWS ON VIETNAM'S LABOR
REGIME AND THE TECHNICAL ASSISTANCE THE ORGANIZATION
IS UNDERTAKING. SHE ADMITTED CANDIDLY THAT VIETNAM'S
LABOR REGIME FELL SHORT OF INTERNATIONAL LABOR
STANDARDS BUT ASSERTED THAT VIETNAM HAD MADE
SIGNIFICANT PROGRESS IN IMPROVING COMPLIANCE SINCE RE-
JOINING THE ILO IN 1992. MOREOVER, SHE SAID THAT THE
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PAGE 07 HANOI 01026 031511Z
COUNTRY WAS "COMMITTED" TO GRADUALLY AND DELIBERATELY
CONTINUING TO BRING LABOR RIGHTS MORE CLOSELY INTO
COMPLIANCE WITH INTERNATIONAL STANDARDS. IN RESPONSE
TO QUESTIONS ABOUT ADDITIONAL PRIORITY AREAS IN WHICH
VIETNAM NEEDED AND WAS PREPARED TO ACCEPT ILO
TECHNICAL ASSISINTACE, MS. GREVE LISTED STRENGTHENING
LABOR STATISTICS AND MARKET INFORMATION AND COLLECTIVE
BARGAINING, ESPECIALLY AT THE ENTERPRISE LEVEL. AS
THE ILO IS NOT A FUNDING AGENCY, SHE NOTED THAT
FUNDING FOR SUCH PROJECTS MUST COME FROM MULTILATERAL
OR BILATERAL DONORS.


10. (SBU) THE STAFFDEL MEETING WITH VIETNAMSES LABOR
CONFIDERATION (VGCL) VICE CHAIRMAN CHIEN PROVIDED A
PICTURE OF HOW THE LABOR CONFEDERATION ENVISIONS ITS
ROLE AND WHAT IT THINKS ARE SOME OF THE PROBLEMS
FACING VIETNAMESE WORKERS. IN HIS REMARKS, CHIEN
REFLECTED THE VGCL'S TRADEMARK SCHIZOPHRENIA BETWEEN

OLD ATTITUDES AND METHODS, WHICH CHARACTERIZED TRADE
UNION ACTIVITY IN VIETNAM'S COMMAND ECONOMY AND A
GROWING UNDERSTANDING OF AND DESIRE TO ADAPT THE LABOR
REGIME TO CHALLENGES PRESENTED BY THE MORE MARKET-
ORIENTED ECONOMY OF TODAY. WHEN SPEAKING ABOUT THE
TRADE UNION'S ROLE, HE STATED IT IN TERMS OF VGCL'S
RESPONSIBILITY TO SUPPORT THE NATION'S ECONOMIC GOALS
OF EXPANDED GROWTH AND JOB CREATION BY "SUPERVISING
AND REPRESENTING THE INTEREST OF LABORERS."
NEGOTIATION AND CONCILIATION WITH EMPLOYERS ON THE
WORKERS BEHALF SYMBOLIZED THE VGCL'S PREFERRED
APPROACH TO ADDRESSING LABOR DISPUTES.
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PAGE 08 HANOI 01026 031511Z


11. (SBU) HOWEVER, ON SEVERAL OCCASIONS, CHIEN NOTED
PROBLEMS THAT FACE WORKERS AND BY EXTENSION THE VGCL,
ESPECIALLY, HE CLAIMED, IN FOREIGN-INVESTED
ENTERPRISES (FIE'S). SOME EMPLOYERS FAVOR SHORT-TERM
CONTRACTS EVEN WHEN THE WORKERS ARE CLEARLY LONG-TERM
EMPLOYEES. SOME EXPECT WORKERS TO WORK MORE OVERTIME
THAN THE 200 HOURS/YEAR PERMITTED UNDER THE LABOR CODE
THEREBY FAILING TO CREATE NEW JOBS. (NB: THIS
REQUIREMENT IS FAR BELOW THE ILO/SA8000 STANDARD OF
600 HOURS/YEAR OVERTIME AND THERE HAVE BEEN CALLS FOR
ITS REVIEW DURING THE COMMENT PERIOD ON THE DRAFT
LABOR CODE AMENDMENTS. IT APPEARS THE INTENT OF
LIMITING THE NUMBER OF OVERTIME HOURS IS LESS WORKER
PROTECTION THAN A DESIRE ON THE PART OF THE GOVERNMENT
TO FORCE EMPLOYERS TO CREATE MORE JOBS.) CHIEN NOTED
CASES EXIST IN WHICH OWNERS AND MANAGERS DISCOURAGED
THE ESTABLISHMENT OF THE FORMATION OF UNIONS BY THE
VGCL IN THEIR ENTERPRISES. HE ALSO SAID THAT THE
PENALTIES FOR ENTERPRISES THAT VIOLATE THE LABOR CODE
WERE NOT HIGH ENOUGH TO ACT AS A SIGNIFICANT
DETERRENT. OTHER PROBLEMS INCLUDED FAILURE TO PAY TET
HOLIDAY BONUSES, INSUFFICIENT COMPENSATION FOR
OVERTIME, AND AN UNDULY STRESSFUL WORKLOAD. (COMMENT:
THESE SAME PROBLEMS EXIST IN THE DOMESTIC PRIVATE
SECTOR AND, TO SOME EXTENT, IN THE STATE-OWNED
ENTERPRISES, BUT MANY LABOR OFFICIALS, IN BOTH THE
VGCL AND MOLISA, TEND TO RAISE THESE ISSUES ONLY IN
THE CONTEXT OF FIE'S. END COMMENT.)

12 (C) COMMENT: THESE VISITS AFFORDED THE EMBASSY A
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WELCOME OPPORTUNITY TO INTERACT WITH IMPORTANT
CONGRESSIONAL STAFFERS INVOLVED IN THE DEBATE ON THE
LABOR DIMENSIONS OF TRADE. SEVERAL OF THESE STAFFERS
ON BOTH DELEGATIONS SEEMED TO OPERATE UNDER THE
MIQAKEN ASSUMPTION THAT THE EMBASSY IS IN A POSITION
TO JOIN IN FORMULATING A LABOR STRATEGY THAT COULD, AT
LEAST IN PART, BE COMPLETED PRIOR TO A VOTE ON THE
BTA. ONE OF THESE STAFFERS CONTINUES TO TELEPHONE
REGARDING LABOR ISSUES IN VIETNAM. WE HAVE REPEATEDLY
MADE IT CLEAR WE ARE NOT IN A POSITION TO MAKE POLICY
COMMITMENTS; THIS IS NOT OUR ROLE IN THE FIELD.
RATHER THIS IS A JOB FOR THE ADMINISTRATION, OF WHICH
WE ARE A VERY SMALL PART. HOWEVER, WE SHARE WITH
THESE STAFFERS INTEREST IN ASSURING THAT VIETNAM'S
WORKERS ENJOY PROTECTIONS AND THAT THEY WILL NOT
SUFFER ANY DETERIORATION IN THEIR SITUATION AS A
RESULT OF THE BTA COMING INTO FORCE. YET, WE HAVE
CONSISTENTLY ARGUED THAT TO LINK TRADE BENEFITS TO
PROGRAM ON LABOR WILL TORPEDO THE BTA AND TRADE
LIBERALIZATION GENERALLY IN VIETNAM. THE VIETNAMESE
WILL NOT STAND FOR IT AND WE THINK VIETNAM'S SITUATION
IS SUFFICIENTLY UNIQUE THAT A COOKIE CUTTER TEXTILE
AGREEMENT MODELED ON THE ONE THE U.S. ENTERED INTO
WITH CAMBODIA IS THE WRONG APPROACH FOR VIETNAM. THE
BILATERAL MOU ON LABOR WITH THE VIETNAMESE IS OFF TO A
GOOD START. IF THE ADMINISTRATION DETERMINED THAT
LABOR RIGHTS IN VIETNAM NEED FURTHER BOLSTERING, WE
RECOMMEND ATTEMPTING TO FUND ADDITIONAL PROJECTS UNDER
THE MOU. SEVERAL STAFF MEMBERS' DESIRES TO LINK BTA
PASSAGE WITH GREATER PROGRAMS ON WORKERS' RIGHTS WAS
NOT LOST ON THE VIETNAMESE. VIETNAMESE OFFICIALS ARE
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ALREADY ASKING SERIOUS QUESTIONS CONCERNING WHEN THE
U.S. WILL FORWARD THE BTA TO CONGRESS. WE BELIEVE
THESE DISCUSSIONS ABOUT LABOR BROUGHT BY THE
CONGRESSIONAL DELEGATIONS MAY HAVE INCREASED GQ
ANXIETY ON THE BTA RATIFICATION PROCESS EVEN MORE.
END COMMENT.

PETERSON

CONFIDENTIAL