Question 169. Is it compulsory to establish the Grassroots trade union? From the Employer’ perspective, should the Employer convince the Employee to establish a trade union in the enterprise?

According to the labour law, a trade union is established under the principle of voluntariness and its operation follows the principle of democratic centralism[1]. Thus, in principle, unionisation is not an obligation on the Employer. The Employee has the right to establish or join in a trade union under the Law on Trade Union[2].

However, the grassroots trade union will bring about some particular benefits to the Employee, and the Employer, respectively. For the Employee, the grassroots trade union will act as a representative in protecting the legitimate right and interest of union member and even non-members; it participates in collective dialogue to negotiate, execute, and oversee the implementation of CLA, salary scale, labour norm, policy on salary and rewards, ILR, democratic policies. For the Employer, the grassroots trade union will assist them in constituting internal policies (such as ILR, CLA, salary scale, reward policies and other policies related to the Employee’ right and interest) more promptly and conveniently. Additionally, the involvement and presence of the grassroots trade union is compulsory in the process of applying disciplinary action[3].

[1] Article 6.1 of the Law on Trade Union

[2] Article 170.1 of the Labour Code

[3] Article 122.1 (c) of the Labour Code