Labor Relations in China

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nAbstract

nChina has a communist economy, which influences the labor legislation. The country faces large number of unemployed workers and striking workforce. Therefore, the government has implemented various reforms in the labor relations. China implements harmonizing systems for coordinating labor relations. Moreover, the government has introduced a system of collective agreements/contracts aiming to manage the labor relations. Furthermore, the government has initiated the triplet-negotiation mechanism aiming to improve the labor relations. In order to help in settlement of disputes, the labor relations have developed mechanism for labor dispute. On the other hand, labor standards has been initiated such as occupational health and safety, child labor, wages, and working hours. The labor legislation in China also has departments of Social Security and Labor, which conduct regular inspections at different levels. Moreover, the labor relations also have social insurance that promotes the economic and social prosperity because it acts an adjuster for distribution of income. There are a wide range of challenges that faces labor relations in China, which include strikes, violation of human rights and corruption.

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nIntroduction

nThe communist economy in China influences the labor relations in the country. The labor legislation in the China guides the implementation of current labor relations. The legislation covers relations concerning promotions in employment, trade unions, systems on inspections of labor, labor conflicts, and social insurance (Pringle, 2011). Moreover, China faces problems in employment because it has a huge number of its citizens unemployed. On the other hand, the countrys workforce experiences increasing cases of unrest and strikes (Cooney, Biddulph & Zhu, 2013). Due to this fact, it has implemented drastic reforms in the sector in order to promote better wages for workers and reduce the rate of unemployment.

nHarmonizing Systems

nChina executes systems for coordinating labor relations. Since 1980s, the government started to revive it system on deployment of labor. Consequently, it introduced contracts of labor throughout the country. The strategies for employment have facilitated labor transfer from assignment of the government to market connection (Chen, 2011). Currently, the government does not utilize its administrative authority to control labor relations. Instead, the labor law in this country helps to control the relationships of labor. More importantly, the labor legislation empowers the workers and employers to make independent decisions and choices about responsibilities and rights.

nFurthermore, in China, the government has introduced a system of collective agreements/contracts aiming to manage the labor relations. The system was launched in early 1990s. It aims were to safeguard the rights of labor for all workers in the country. In addition, it was intended to establish a self-governing mechanism for relationships of labor in business (Cooney, Biddulph & Zhu, 2013). The collective system plays a critical role in determination of labor relationships because it provides harmony between employers and collectivism of labor.

nThe Chinese government has also introduced a triplet-negotiation mechanism aiming to help in harmonizing labor relationships. The system is formed from representatives from enterprises, government departments and trade unions in the country. The triplet-cooperation system in China plays a major role in making important decisions regarding labor relationships (Chen, 2011). For instance, in early 2000, the triplet- cooperation mechanism convened its first meeting to provide efficient labor relations in the country. The participants of this conference were drawn from Enterprise Association of China, All-China Federation of Trade Unions (ACFTU), and Labor and Social Security Ministry (Pringle, 2011). Currently, a similar system has been formed in all the municipalities, independent units and provinces across the country.

nSettlement of Labor Conflicts

nThe Chinese government has also established settlement mechanism for labor dispute. Due to the growth of market economy, labor relationships have experienced numerous challenges leading to labor conflicts. Research indicates that the number of labor conflicts between employees and employers have increased over the past decades in China (Cooney, Biddulph & Zhu, 2013). Consequently, the government has responded by introducing labor legislations that facilitate resolution of labor disputes. It also aims to safeguard the legal interests and rights of both parties (Ma, 2011). Similarly, the regulation also enhances strategies of solving conflicts between these parties through mediation and litigation.

nOver the last decade, the mechanism has successfully resolved thousands of conflicts related to labor. For instance, it has initiated organizations for mediation and committees for arbitrations. Furthermore, courts constituting different people have been used to solve the labor conflicts (Chen, 2011). A study conducted by the ministry of Labor in China revealed that this mechanism is effective in resolving various dispute in labor sector. In this case, the finding of this research noted that the arbitrating committee helped to solve 260 000 cases of labor conflicts in 2004 (Ma, 2011). Moreover, the committees were also effective in ending more than 250 000 cases of labor in the country.

nChinese Standards of Labor

nLabor relations in the country have also improved after formulation of labor standards. Currently, the law guides the standards of labor in China. In this regard, the government has set standards related to Occupational health and safety, child labor, wages, working hours as well as minors and women employees. On the other hand, social and economic growth also determines the type and scope of labor standards that are formulated. In China, an employer is required to adhere to the least wage principles (Chen, 2011). The government also ensures that the employers respect the vital interests and rights of the employees.

nThe Chinese government also ensures that it constantly improves the mechanism for payment of wages. There are explicit regulations on time, objects, forms, levels and items of payment of wages as well as the special conditions under which wages are paid. The system also ensures that there is minimum wages (Cooney, Biddulph & Zhu, 2013). The standards on minimum wages have been implemented in various levels such as municipalities, independent areas and thirty provinces (Pringle, 2011). The idea on minimum wages in very important in China because it helps to guarantee the rights of workers particularly those in lowest job groups. The ministry has also implemented standards related to working during festivals and holidays. Similarly, it has set the standard number of hours in a day for a worker (Ma, 2011). For instance, the law stipulates that an employee should work for eight hours a day and should be compensated for overtime hours. They should also rest during festivals and holidays.

nMinor and women employees in China also enjoy unique protections. The law forbids certain types for work for minors and women. For instance, employees are required by law to conduct regular physical assessments to minor employees. The systems of occupational health and safety have also been implemented in China (Cooney, Biddulph & Zhu, 2013). The main reasons why OH&S has been implemented is that it priorities safety standards and healthy working environment for the workers.

nInspection of Social Security and Labor

nThe labor legislation in China ensures that the departments of Social Security and Labor conduct regular inspections at different levels. The inspectorate departments ensure that law on social security is enforced appropriately. Chinese villages and street society also have inspectorate institutions to ensure that there is no utilization of child labor, engagement of people in social insurance and labor contracts (Chen, 2011). In some areas, the authorities have established contact centers where violation of labor laws can be reported and advice provided. It also encourages people to report in case of violation of social security.

nSystems of Social Insurance

nReforms have also been conducted in the system of social insurance in China. Social insurance is very important in the economic and social prosperity because it act an adjuster for distribution of income. The Chinese system of social security encompasses services such as social welfare, social assistance and social insurance. The system of pension cover has been introduced in China. The pension cover is formulated in a way that it includes all employees in every type of profession, or enterprises (Pringle, 2011). Persons and units are required to subscribe to the insurance via a given rate, which are then distributed in a certain format. However, research indicates that more need to be done in order to improve this system at the industrial and provincial backgrounds (Ma, 2011). A unitary fundamental systems of pension insurance has been established which caters for the priorities of socialist economy.

nChina has also conducted re-structuring of its strategies on unemployment insurance. Since the 1980s, the Chinese government initiated regulations that enable the unemployed people to be insured (Ma, 2011). Currently, the unemployment insurance covers all type of work in the country. Therefore, social companies, institutions, urban businesses, and their workers are also included in the system. The ministry of labor has also introduced medical cover for protect workers in urban areas (Chen, 2011). However, the medical insurance has also been extended to workers across the country for employers and employees. The insurance cover system is socially constructed aiming to provide fundamental medical care for all employers and employees.

nEmployees in China also enjoy the insurance system that caters for occupation-related injury. Based on the provisions of labor law, workers are assured that in case of injuries or diseases due to occupational hazards, they should receive compensation (Cooney, Biddulph & Zhu, 2013). This type of insurance is applicable across the nation. Large companies or small-scale employers are required by the Labor Law to subscribe certain amounts to the work-related disease/injury insurance for their workers (Pringle, 2011). The law also provides heavy penalties to employers who fail to adhere to this provision. On the other hand, since mid-20th century, China has maintained a maternity cover. The insurance on maternity helps to safeguard the dignity and well-being of women workers. In accordance with this system, employers are mandated to cater maternity insurance (Chen, 2011). The insurance system is in line with socialist nature of the Chinese economy.

nChallenges in Chinese Labor Relations

nResearch has revealed that the labor relationships in this country have witnessed a wide range of challenges. The country has experienced increases in the number of labor disputes as the cost of labor raises. For instance, between 2007 and 2010, the number of labor protest increased by more than 20 percent (Pringle, 2011). The disputes are characterized by serial strikes whereby one strike encourages others to go on strike in a certain are or industry. For instance, in 2010, one strike started in the automobile industry (Honda plant) which contributed to serial labor strikes in other related firms (Ma, 2011). Although the triplet-negotiation system that uses litigation, arbitration and mediation has been successful to some extent to reduce the number of labor strikes, most of the regulations governing these processes are disregarded. Consequently, it causes many protests because many managers intimidate employees forcing them to accept poor terms of employment (Chen, 2011). Therefore, the process of mediation contributes to high cases of labor conflicts.

nSimilarly, arbitration also causes the same problem because most of the arbitrators are poorly trained to handle labor protests. There are also reported cases of large organizations influencing the normally operations of local authorities. The local court also has challenges in solving the labor conflicts because they have financial constraints. In most cases, the central government funds the courts but the allocation is normally limited (Pringle, 2011). Consequently, the enforcement of different pieces of labor legislation is difficult because of higher costs. On the contrary, implementation of litigation and arbitration is associated to large amounts of fees and costs. Moreover, in takes a long time before a labor conflict is resolved allowing employers to perpetrate illegal working conditions.

nThe challenges of legal enforcement in labor sector are also affected by increasing cases of corruption from labor officials. Moreover, employees who engage in mass protest also suffer from punishments especially, their leaders. In other case, the government also reported to detain and kill leaders of such movements. Therefore, most of the workers do not have clear leaderships structure in order to avoid such issues (Chen, 2011). In some cases, the workers also fail to produce representative in the process of labor conflicts negotiations because they fear retaliation. The rights of workers to strike are not guaranteed hence their demands are not met.

nChallenges to a better labor relationship in China also increased because the nation has not fully embraced the stipulations of global labor legislation. For instance, research indicates that employees do not exercise their rights to select their representatives for collective negotiations (Ma, 2011). The labor regulations in the country do not also provide for legal framework to compel employers to initiate negotiations with the workers (Pringle, 2011). For instance, the majority of employees in ports, warehouses, mills, mines and factories do not have rights to elect their own leaders.

nConclusion

nLabor relations in China are developed in such a way that it promotes welfare and well-being of workers and employers across the country. However, since the country has a communist economy, the labor regulations are socially formulated. The labor relations in the country are also established aiming to facilitate creation of employment (Cooney, Biddulph & Zhu, 2013). They provide important provisions such as OH&S standards, and mechanisms for labor conflict resolution. It also offer provides crucial welfare such as minimum wage, working hours and overtime compensation (Ma, 2011). However, the country faces a number of challenges related to labor protests. Labor conflicts are increasing in the country because of skewed implementation of legislations.

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nReferences

nChen, K. (2011). Labour law in China. Alphen aan den Rijn, The Netherlands: Kluwer Law International.

nCooney, S., Biddulph, S., & Zhu, Y. (2013). Law and fair work in China. Abingdon, Oxon [UK]: Routledge.

nMa, Z. (2011). The ACFTU and Chinese Industrial Relations (Trade Unions Past, Present, and Future). Peter Lang Publishing Group.

nPringle, T. (2011). Trade unions in China: The challenge of labour unrest. Taylor & Francis.