Presentation Transcript

1. Changes in the World’s Workshophow new laws, more demanding workers, and activist trade unions are transforming the Chinese workplace

   Mary E. Gallagher Director, Center for Chinese Studies Associate Professor of Political Science University of Michigan(metg@umich.edu)
2. Demographic Context of the Labor Rights Movement in China Since 2004, increasing evidence of a “labor shortage” in coastal, labor-intensive manufacturing sites Working population ratio now falling due to effects of the one-child policy Domestic stimulus and agricultural policy changes improving inland employment options Hukou-related institutional barriers to permanent migration Mary Gallagher, 2010
3. Labor Scarcity and Wage Pressures In a national survey of firms in 2009, only 3% of non-state firms said they had too many workers. 40% said that they could not find enough workers. Real migrant wages continued to rise during the crisis, as reported by PBC and NBS In China Urban Labor Force Survey, migrant workers reported a 13% increase in monthly wages between September 2008 and February 2010 – despite the crisis Mary Gallagher, 2010
4. Social Context of Labor Rights Second generation of migrant workers more aware, more demanding, and better educated. Different frame of reference and different expectations than their parents. Aspiring urban citizens. Higher exposure to mass media and communicative technologies. Mary Gallagher, 2010
5. Honda Workers were well organized and used tactics to hide identities of leading strikers
6. Key Issues and Characteristics of the 2010 Strikes Wage Differential between Japanese and Chinese workers a key rallying point “Apprentice workers” were the most hardcore supporters of the strike action Differences between younger and older workers particularly striking; younger workers more radical Even younger workers stuck to peaceful strike measures, processes of representation, and strategies to protect themselves from retribution Wages demands were key; but workers also demanded “their own” trade union Negotiations handled by the CEO of the Chinese partner, with participation from a leading labor relations professor in Beijing. Limited Trade Union Role.
7. The Political Context: Protective Laws, Activist Media, but Divided Government Central government promulgates more protective laws Media coverage of issues has increased ACFTU-affiliated trade unions have been given more (but limited) powers Mary Gallagher, 2010
8. 2007 “Year of Social Legislation”The Labor Contract LawThe Labor Dispute Mediation and Arbitration LawThe Employment Promotion Law Mary Gallagher, 2010
9. Aspiration vs. Regulation 1995 Labor Law 40-hour work week 5 kinds of social insurance Consultation with the trade union 36-hr max overtime/per month 2008 Labor Contract Law Strict limits on short-term contracts Punitive fines for non-signing of contracts Severance pay for contract expiration Mary Gallagher, 2010
10. Minimum Wages by City各地最低工资标准
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12. Employee Organization and Representation All-China Federation of Trade Unions (ACFTU) is the only legal labor organization in the country. By law, employees in any company with 25+ employees can form a union under the auspices of the ACFTU. Recently a renewed drive to organize employees of foreign and private firms (Walmart and Foxconn). Mary Gallagher, 2010
13. Collective Bargaining and Contracts Labor laws and trade union law all empower trade union to bargain collectively However, collective bargain often determined in advance by local government (debate is now more open, however…) Problem of employer representative and union representative – all are government entities! Central Government states that collective wage bargaining system to be established by 2012 Local governments now developing specific guidelines (广东省企业民主管理条例－Guangdong Province Regulations on Democratic Management of Enterprises） Mary Gallagher, 2010
14. Right to Strike Right to Strike taken out of Chinese Constitution in 1982 Strikes and demonstrations occur daily, but at great risk Labor laws permits trade union to lead workers from workplace in event of unsafe conditions However, unions legally required to mediate dispute and resume production as quickly as possible Draft local regulations beginning to regulate strikes Mary Gallagher, 2010
15. Central and Local Governments Divided; Trade Union Beholden to Local Interests ACFTU has gained increased power over the past few years but this power does not extend to the firm level. ACFTU-directed unionization is part of the government’s attempt to stave off labor unrest ACFTU unionization also garners large financial gains to the union (2% of wage bill) Local trade union officials are appointed and financed by local party/state Trade union activities are dependent on local political support Local political leaders still appointed and evaluated based on economic growth targets Mary Gallagher, 2010
16. Rising Labor Conflict Since January 2008, labor disputes have doubled or tripled as workers make use of new labor laws Percentage of arbitrated suits going to litigation exceeds 50% in major cities. Collective labor disputes often accompanied by work actions. Employees, especially urban employees, are more aware of their legal rights. Mary Gallagher, 2010
17. Labor Disputes Increase Dramatically in 2008 Mary Gallagher, 2010
18. Disputes heavily concentrated in a few provinces and provincial level cities Mary Gallagher, 2010
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20. Conclusion Wage increases and labor conflict are likely to continue, especially on the coast and in foreign-invested enterprises Employers will spend more time and resources on human resource management; both to retain needed workers and to manage disputes Inland investment will increase; but labor challenges exist there as well, including supply of well-educated and highly skilled employees Government’s plan to strengthen collective wage bargaining is an attempt to manage wage pressures and to reduce instability in the context of continued central gov’t support for wage increases Those attempts will be weakened by regional competition for investment and by the institutional barriers of the ACFTU Mary Gallagher, 2010