Labour problems a major challenge for Laos
Labour problems a major challenge for Laos
Deputy Prime Minister Somsavat Lengsavad recently asked the state and private sectors to urgently discuss how to resolve the country's chronic labour shortage, the provision of social welfare for workers, and ways to produce more skilled workers.
The state sectors concerned are the ministries of Labour and Social Welfare, Planning and Investment, and Education and Sports, while the private sector is represented by the Lao National Chamber of Commerce and Industry (LNCCI).
Speaking at the 8th Lao Business Forum in Vientiane, Mr Somsavat said these ministries must cooperate more closely. At the same time, the LNCCI must also know what special job skills are required by private businesses.
This is necessary so the right changes can be made and that people with appropriate job skills are provided to meet the needs of current and future market demand.
“I have observed that a lot of progress has been made recently, including stronger cooperation between business operators and vocational training schools. But there should be another meeting between the LNCCI and the ministries of Education and Sports and Labour and Social Welfare,” Mr Somsavat said.
At this meeting participants should determine how they intend to resolve the various labour issues, which is essential in the current business climate.
He noted that the government has often commented that work plans have not matched up with labour plans, although the Ministry of Education and Sports has authorised the opening of many more schools, including private schools. “However, we still don't know exactly which job skills are required by the market,” he said.
“The Ministry of Education and Sports is making comprehensive adjustments to the education system. We have had a lot of good experiences, but we have not propagated or implemented the changes widely.”
Also speaking at the Lao Business Forum, a senior advisor to the LNCCI, Mr Onesy Boudsivongsakd, said both local and foreign investors operating in Laos have encountered problems stemming from the chronic labour shortage.
At present, 31,130 people are needed each year to work in the garment industry, processing industry, tourism, steel rod production, furniture production, construction, for the KP industry group, and the Nikon and Essiloz companies in the Savannakhet economic zone.
However, only 187,750 people are currently available to work in these sectors, according to a handout distributed at the forum.
Furthermore, the figure of 31,130 does not include workers required for the two sugar companies operating in Savannakhet province or those needed to harvest latex on rubber plantations around the country, which amounts to several thousand more.
Director General of the Labour and Social Welfare Ministry's Skill Development and Employment Department, Mr Phouvanh Chanthavong, said providing decent salaries, welfare benefits and social insurance could all be ways to resolve the labour shortage that is challenging local and foreign investors in Laos.
“It's important to understand that the job vacancy situation is not under employer control, and that employees have the opportunity to select their job, employer, workplace, salary and welfare benefits,” Mr Phouvanh said.
Employee welfare is an issue needing close attention, he added, “especially the situation regarding social insurance. There are many companies that have not yet registered with the social insurance scheme. To attract employees in the long term, we have to provide them with some form of security. If not, they won't work for us.”
As part of their social welfare, it is necessary to ensure that their salary and welfare benefits cover any period when they or members of their family are ill, and that they have enough money to pay medical bills.
“I have noticed that many private businesses have not done well on this particular point,” Mr Phouvanh said.
vientiane times
