Monday, October 28, 2013

Developing a blueprint for collective bargaining in China

 

Developing a blueprint for collective bargaining in China

Labour rights groups and worker activists have, for the first time, jointly devised and published a grassroots blueprint for collective bargaining in China.
The aim of the Code of Collective Bargaining (劳资集体谈判守则), issued on 11 October, is twofold: To give employers and employees a practical guide to collective bargaining, and provide a possible template for collective bargaining legislation in China in the future.
On the same day that the Code was published, the Guangdong People's Congress issued its revised Regulations on Collective Consultations and Collective Contracts (广东省企业集体协商和集体合同条例 [修订草案稿]); also designed to develop a mechanism for the peaceful resolution of labour disputes through collective negotiations.
The Guangdong government, like the province's workers and labour groups, clearly recognises the need to improve labour relations. However, while the Regulations are an improvement on earlier drafts, they fail to take into account important new developments in collective bargaining over the last few years and still promote the largely discredited idea of collective consultations, in which stability and harmony are prioritized over worker engagement.
The Code, by contrast, is based entirely on the first-hand, practical experience of workers and labour organizations in conducting bargaining on the ground in Guangdong. The 65-article Code acts as a step-by-step guide to initiating, preparing for, conducting and concluding collective bargaining in the workplace and supervising the implementation of the resulting collective agreement.
The Code is based on the fundamental principle of good faith bargaining and outlines the rights and obligations of both the employer and employee bargaining representatives. It seeks to create a bargaining process that is equal, open and fair, one that ensures the personal safety and integrity of all bargaining representatives, and offers practical options for the resolution of deadlock.
Unlike the Guangdong Regulations, the Code recognizes the fact that strike action is already commonplace and should be seen as an integral part of the overall collective bargaining process. The Code sets out the conditions under which workers should take strike action and stresses that strikes should only be used when all other means of breaking a deadlock have been exhausted.
The Code also recognizes that not all factories have a trade union, and as such it sets out a detailed procedure under which employees can inform the nearest district trade union of their actions and provide it with the opportunity to get involved in the bargaining process if necessary. It is also stresses that even in workplaces that do have a trade union; the employees themselves should be directly represented in the bargaining meetings.
CLB believes that the strength of the Code lies in the fact that it is rooted in the day-to-day reality of Chinese labour relations. The Guangdong Regulations by contrast seem to exist in a parallel universe where all labour laws and regulations are adhered to and government and trade union officials actively promote workers' interests.
CLB argues that instead of simply publishing draft regulations for a limited period of public comment, the Guangdong government should extend the consultation period for the Regulations for at least a year in order to gather sufficient practical experience and information for future legislation. The authorities should observe and study the actual practice of collective bargaining in the province, including strikes, the recall and re-election of enterprise trade union officials and the role of non-governmental organizations in assisting workers during the collective bargaining process.
In conclusion, CLB Director Han Dongfang stressed that, despite the limitations of the Regulations, the Guangdong government was at least now in step with workers and civil society in understanding the need for change:
We should recognise that workers, labour groups and the Guangdong government are all taking important steps towards the creation of a stable and effective collective bargaining system in China and we hope that further concrete steps can be taken in the future.

Monday, October 21, 2013

China's labour market faces tough challenges ahead

China's labour market faces tough challenges ahead

China's labour market is in a state of flux. The needs of employers and the demands of employees are increasingly out of sync, and this dislocation is only likely to worsen as growth continues to slow and the economy moves away from a reliance on exports towards greater domestic consumption.
Although the working-age population will almost certainly decrease in the coming decade, the kinds of jobs that have driven China's economic growth in the past could decrease at an even faster rate. Many low-cost, labour-intensive industries have already shifted substantial numbers of jobs to Southeast Asia, while the creation of the value-added jobs the Chinese government covets has been constrained by the limited skills the labour market can currently provide.
In a new report on the employment situation in China, CLB examines the latest official data on the regional and age distribution of workers, looks at the industrial sectors and types of ownership that have seen an increase in employment over the last five years, and at the groups of workers that have experienced the most difficulties in finding employment.
The report analyses the problems faced by college graduates, a record number seven million of whom will be looking for work this year, as well as elderly and disabled workers who have long been discriminated against in the job market. It also examines how demographic changes have created labour shortages in some areas, forcing employers to reassess their hiring practices.
In order to address China's deep-seated and complex employment problems, CLB recommends that the government and employers:
  • Tackle the widespread and widely-accepted practice of employment discrimination, which is currently one of the biggest obstacles to an open and healthy labour market.
  • Provide more on-the-job training. Employers routinely complain that they cannot find suitable candidates but at the same time set unrealistic requirements and are reluctant to provide training for new workers or retrain older employees.
  • Ensure job-seekers understand and have realistic expectations of the job market. The education system needs to be consolidated and restructured so that students better understand their job prospects.
  • Ensure that all workers have the social insurance they are legally entitled to. As the population ages, the need for decent pensions and healthcare will become ever more pressing.
  • Give workers greater say in their pay and working conditions through collective bargaining with management. Ultimately, the best way to ensure that workers get the right pay for the right job is to give the workers themselves a more prominent voice in the regulation of the labour market.
CLB's study on Employment in China is published today in the Resource Centre, a section of the website designed to give readers a comprehensive overview of the key labour issues in China. Other topics include migrant workers and their children, wages, social security, employment discrimination, the labour dispute resolution process and the system of work-related injury compensation.