Collective bargaining

Multi-employer collective bargaining agreement extended to 10 tourism companies

The number of participating firms in Da Nang City is expected to reach 50 in 2019.

News | 04 January 2019
DA NANG (ILO News) – The multi-employer collective bargaining agreement (MECBA) among four tourism companies in Da Nang City was successfully extended on 22 December, 2018. The agreement now covers 10 companies employing 2,400 employees.

The agreement was originally signed in January 2016 and has 12 provisions that benefit workers such as an increase of 3.3 per cent in the base wage paid by participating enterprises above the Government designated minimum wage and other improvements in mid-shift meals and allowances.

Participating companies own many large and well-known hotels such as FURAMA Resort (Bac My An Company), Pullman Hotel (Phu An Thinh Company) or Hyatt Regency Danang Resort and Spa (Ngu Hanh Son Company).

Chairman of Da Nang Tourism Association, Huynh Tan Vinh, expressed his delight at the signing ceremony, noting that his association will work hard to coordinate with Da Nang Federation of Labour to increase the number of participating enterprises in the MECBA to 50 in 2019.

The previous negotiation process for the agreement lasted two months, with many rounds of difficult negotiation for both workers and employers. However, as more enterprises join in, this process can be facilitated as enterprises have more incentives to ensure that working conditions at their workplaces can match up with others in the field.

The initiative was part of the ILO’s New Industrial Relation Framework project funded by the Japanese Government.