Issue of December 2021 – Procedures for Establishment of Grassroot Trade Union

Dear Valued Clients,

Pursuant to the 2012 Law on Trade Union, the establishment of a grassroots trade union (“GTU”) totally depends on the voluntariness of the employees and is not a mandatory procedure for the employer. However, since the law encourages the establishment of a GTU in an enterprise, ENT would like to provide some specific guidance on the procedures for setting up a GTU as you will see below in this Legal Update.

Conditions for establishing a GTU[1]

GTU is a grassroots organization of Vietnam Trade Union, which shall be established upon the following requirements:

1. Is established in one or several lawful employment units[2].

2. Has at least 05 union members or 05 employees having a voluntary petition for participating Vietnam Trade Union.

Procedure for establishing a GTU[3]

Step 1: Set up a campaigning committee for GTU establishment (the “Campaigning Committee”)

The employees, in where there has yet a GTU, shall voluntarily set up the Campaigning Committee.

The Campaigning Committee propagates, mobilizes and receives request for participation of the trade union of the employees.

During the process of mobilizing the employees to participate the GTU, members of the Campaigning Committee shall appoint the head of the Campaigning Committee and contact the nearest superior trade union for guidance, assistance and support.

When the conditions for establishing a GTU are satisfied, the Campaigning Committee shall organize a launching conference of the GTU and register with the superior trade union for recognition.

Step 2: Organize the launching conference of the GTU (the “Conference”)

Participants:

1. The Campaigning Committee.

2. Employee who are working at a union member or an employment unit having a request for participation of the Vietnam Trade Union.

3. The representatives of the superior trade unions, the employers and other participants (if any) attend and witness the Conference.

The organization and administration of the Conference shall be carried out by the Campaigning Committee. Union members and employees other than those in the Campaigning Committee, who have experience and prestige, may also be invited to act as the administer or the secretary of the Conference.

The contents of the Conference include:

1. Declaration of reasons, introduction of delegates.

2. Report on the mobilization process and the preparation for the establishment of the trade union.

3. Announcement of the list of employees having voluntary request for participation of the union.

4. Declaration of establishment of the GTU.

5. Statement of the representative of the superior trade union (if any).

6. Statement of the employer (if any).

7. Election of the executive committee of the GTU.

8. Election of the President of the GTU.

9. Approval of the operation plan of the GTU.

Elections at the Conference shall be conducted by secret ballot[4]. Ballot-papers at the Conference must bear the signature of the head of the Campaigning Committee in their upper left corner.

In places, where are not possible to convene all employees having request for participation of the union, due to the production and business conditions, the Committee shall organize to collect ballots to introduce personnel and distribute ballot-papers for the election of the executive committee and the President of the GTU, for union members in departments, divisions, groups, teams, workshops, and work groups; and at the same time, shall count votes according as regulated and announce the election results to all union members.

At the end of the Conference, the Campaigning Committee shall hand over all conference documents to the executive committee or the newly elected President, including the list of the Campaigning Committee to keep records, and establishment documents of the GTU.

The Campaigning Committee terminates its duties after the Conference is successfully organized.

Step 3: Organizing the meeting of the executive committee (“Executive Committee”)

The president of the GTU organizes the meeting of the Executive Committee within 10 working days from the termination date of the Conference to appoint the standing committee, the vice president, the inspection committee and the chairman of the inspection commission (if the conditions are satisfied). The preparation needs to seek for the instruction of the superior trade union.

Step 4: Request for recognition of the GTU

Within 15 working days from the termination date of the Conference, the Executive Committee must prepare an application requesting the superior trade union for recognition of the GTU, containing the following documents:

1. Written request for recognition of trade union members, the GTU and the election result of the Executive Committee, standing committee, inspection commission and other tittles of the Executive Committee and the trade union inspection commission.

2. List of union members and the written request for participation of the Vietnam Trade Union of the employees.

3. List of curriculum vitae of the Executive Committee’s members, the standing committee, the inspection committee’s members of the GTU.

4. Minutes of the Conference.

5. Vote counting minutes of the Conference and election minutes of the meeting of the Executive Committee (if any).

Step 5: Recognition decision of the GTU

Within 15 working days from the receipt date of the application for establishment of the GTU, the superior trade union is responsible for appraising the establishment process to ensure its voluntariness, objectivity; and the election at the Conference and the Executive Committee meeting to be in accordance with the Charter of Vietnam Trade Union.

In case the GTU is established in accordance with the Vietnam Trade Union Charter, the recognition decision of the trade union members, the GTU, the executive committee and the titles of the executive committee shall be issued as regulated.

In case of ineligibility to recognize trade union members or the GTU or the elected titles, the superior trade union shall notify the employees in writing; and at the same time, shall guide the precise recognition procedure, or shall continue to propagate and mobilize employees to voluntarily associate to establish a GTU consistently with the Charter of the Vietnam Trade Union.

Step 6: Upon the recognition of the superior trade union, the Executive Committee carries out the procedures to engrave the seal; at the same time, organize the operation according to the Charter and the Guidelines for the implementation of the Charter of the Vietnam Trade Union; guidance from the superior trade union and the operation plan agreed at the Conference.

As usual, we hope you find this article helpful and look forward to working with you in the upcoming time.

Kind regards,

ENT Law LLC

[1] Under Article 13.1 of the Charter of Vietnam Trade Union.

[2] Under Section 11 of the Guideline 03/HD-TLD, a GTU is established in several employment units, including:

• • Enterprises of all economic sectors (including subsidiaries in a company group; branches and representative offices of enterprises with headquarters located in other localities).
  • Cooperatives employing according to the provisions of the labor law.
  • Public and non-public career units do independent accounting.
  • State agencies, political organizations, socio-political organizations, socio-political-professional organizations, socio-professional organizations.
  • Foreign agencies and organizations, and international organizations operating in the Vietnamese territory and employing Vietnamese workers.
  • Other agencies and organizations employing in accordance with the law on labor.
  • In case the employment unit is not qualified to establish a GTU, or according to the employee’s desire to associate, it is possible to establish a joint GTU in various employment units.

[3] Under Article 14 of the Charter of Vietnam Trade Union and Section 12 of the Guideline 03/HD-TLD.

[4] Under Section 8 of the Guideline 03/HD-TLĐ.