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Lao business welcomes new labour management law
Businesses in Laos have warmly welcomed the draft of the Law on Labour Management, according to a Lao National Chamber of Commerce and Industry (LNCCI) representative.
“In general, businesspeople in Laos find the draft of the law acceptable, and think there are only some words which should be changed,” LNCCI Deputy Secretary General Ms Sengdavone Bangonesengdet said yesterday.
Ms Sengdavone made the comment after moderating a meeting of 50 business representatives in Vientiane to discuss the draft law on February 8-9. The discussion session was made possible through cooperation with the International Labour Organisation (ILO).
She said most business operators commented on Chapter 10 of the draft law, which relates to salary, wages and income tax, as the cost of labour is key to ensuring that Laos remains competitive.
Ms Sengdavone, who is also Director of the LNCCI Employer Office, said businesses want to see closer coordination between representatives of employers, employees and the government regarding increases in the minimum wage, adding that this would ensure effective enforcement of the law.
Debate over the cost of labour continues to divide employer and employee representatives. In recent months, the government has had a difficult time trying to forge an agreement between the two parties on a revised minimum wage of 620,000 kip per month.
The Lao Federation of Trade Unions, which represents employees, wants the minimum wage to be increased to more than 700,000 kip per month due to rising inflation, while the LNCCI argues this would put Lao exporters at a disadvantage when competing with foreign enterprises.
Ms Sengdavone also said businesspeople want to see the law attract private sector investment, helping the government to create jobs and income, while it must also help prepare the private sector to compete with foreign companies once Laos joins the Asean Free Trade Area in 2015.
She said the Chamber would submit its written recommendation for changes to the law drafting committee in the near future so that it can be improved before being handed over to the government and National Assembly for consideration and approval.
The government is expected to seek approval from the National Assembly to enforce the law, which contains 25 chapters and 150 articles in its draft form, before the end of this year.
The promulgation of the law will enable the government to manage and protect labourers more effectively.
The government also hopes the new law will help to better regulate the hiring of foreign workers amid increasing demand for skilled employees, to boost foreign investment in Laos.
vientiane times
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