Strikers to pay costs for illegal strikes

Workers and groups engaged in what are judged by courts as illegal strikes must now compensate employers.

Foreign investors are worried about the strikes’ impacts on production flows

VIR, Jun 16, 2008. Circular 07/2008/TTLT released by the ministries of Labour, Invalids and Social Affairs (MoLISA) and Finance guides the implementation of government Decree 11/2008/ND-CP, which regulates this compensation.

The circular states that executive boards of trade unions must take responsibility for compensation if they are the instigators of an illegal strike.

If employee representatives carry out the illegal strike, those participating representatives and workers must make compensation. The employers are responsible for calculating losses caused by illegal strikes, including machine, equipment and material damages, operating and repair costs.

The employers and those engaged in illegal strikes will negotiate the compensation value, which must not exceed three months’ wages.

Employers can bring the cases to the local people’s courts where the illegal strikes occurred if the strikers refuse to negotiate.

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