China’s President and Communist Party Secretary Hu Jintao and Government Premier Wen Jiabao supported these workplace ‘harmonisation’ reforms.
China’s 10th National People’s Congress (NPC) passed the Labor Law on Employment Contracts on June 29th 2007 and in force from 1st January 2008. The Labor Law on Labor Disputes Mediation and Arbitration was operative from May 1 2008.
I describe the content of these laws. The legal framework indicates the industrial relations problems to be addressed. But I do not go into the failures of implementing labour laws prior to 2008.
Changing the labour laws may not change the behaviour of industrial relations participants and what happens in workplace practice. Whether employer abuse of workers will end and a system developed capable of delivering fair play on workplace grievances is yet to be seen.
For Australian readers not familiar with the union, in part two, the All China Federation of Unions ACFTU, the changing role is significant. International collaboration from outside of China working with the ACFTU is increasing, such as work to assist compliance with these labor laws and for fair collective bargaining.
In part three, I examine responses from employers to the compliance challenge. The government is serious.
NGOs and the anti-sweatshop lobby and church, union and political groups for workplace justice can push the corporates in China on corporate social responsibility (CSR).
Next, I give sections of the dispute settlements law with the establishment of processes for the mediation and arbitration commission. As they came into operation on May 1st 2008, it is too early to say how they will work. China industrial relations community debates the problems with this reform.
Finally, PM Rudd and the China question. Australians are able to analyse whether the Rudd government changes for a new regime of Fair Work Australia are able in similar ways to provide protection for Australia’s precarious workforce and a new collective bargaining system with fair play.
Social stability
The NPC accepted the necessity for reform of China’s industrial relations and labour law system. Not the least was pressure from protesting workers.
The policy is to protect their precarious workforce from capitalism’s excessive exploitation. New labor laws require employers to change for fair play for workers. Reforms to the system promise remedies for workplace abuse.
The 2007 17th National Communist Party Congress supported more effort on human as well as economic development; environmental protection with slower economic growth; regional disparities to be tackled; the crackdown on corruption; curbing the extreme inequality of wealth; social security dealing with poverty; and then the Tibet protests, the earthquake, the Beijing Olympics, the world financial crisis and as well these new workplace laws and the pressing question of compliance.
These national labor laws were urgently needed, overriding local inconsistencies and providing legally authoritative force.
This labor law framework is a great improvement for regulating employment contracts and settling labor disputes.
The government has a renewed emphasis on compliance and fairness in the new era. China’s rulers had extended freedoms for capital in China’s ‘socialist market economy’. The question is whether they are to be extended to protect workers .
In operation from 1st January 2008, the contentious debates between employer and employee interests over the details of the bill are over .
The workplace contest is over the implementation or not of ‘your rights at work’ with ‘Chinese characteristics’. Whether they will solve the exploitation and abuse exposed by for example Anita Chan (2000), campaigner for exploited workers in China and author of ‘China’s Workers under Assault. The Exploitation of Labor in a Globalizing Economy’ 2001 is yet to be seen .
In February 2007, I attended a Beijing Industrial Relations conference and interviewed those involved in the new labor laws and participated in debates about the dispute settling system on the details for fair and effective mediation and arbitration.
My paper warned against WorkChoices. However, Australia’s former prevention and settlement of disputes by conciliation and arbitration had good features.
The morning I interviewed the All China Federation of Trade Unions ACFTU about these new laws and on unionising Wal-Mart, the China Daily January 30th 2007 had headlines ‘Labour disputes threaten stability’. Escalating unofficial strikes over employer abuses is a reason these new employment contracts and mediation and arbitration laws have to be followed; otherwise China’s reputable stability is threatened .
In Shanghai on October 12th 2007, I met again a key adviser on the labor laws, Professor Liu Cheng, Shanghai Normal University, Law and Politics. I begin with Liu Cheng as an important policy view:
In the context of globalisation, Chinese labor law is not only something of China its own, but also of America, Europe, and other parts of the world. The trend of “race to the bottom” and deregulation should be deterred by way of global unity. Chinese labor legislation has suffered MNCs’ attack; Chinese labor rights has been endangered by not only Chinese dark-minded employers but also dark-minded employers abroad—such MNCs as Wal-Mart is exploiting Chinese workers by way ofdriving down acquisition price to make its suppliers non-profitable. This compels the suppliers to exploit workers by way of violating labor law in order to ensure their profit.
What’s more, it also hurts fair competition–the dark-minded employers will take advantages of low cost to beat moral employers. It’s apparent that without labor law, there would be no fair competition; without labor law, there would be no social stability.
The industrial relations challenges on the rights and obligations at work are to see these modest reforms are followed.
For human resource management there are opportunities for best practice by doing better than these minimum reforms. This applies critically with suppliers. One way is to reach innovate agreements with the union. Renewed lobbying by the world anti-sweatshop lobby on these minimums is important.
The content of the employment contract law
Paying correct wages on time
In China the capitalist violation of labour rights and the extent of forced labour had gone too far.
Not only are migrant workers from the countryside in sweatshops factories not paid the minimum wage nor overtime when working seven days a week to finish contracts, but for months not paid at all.
Abuses violating not being permitted to require workers to furnish any kind of bond or security were widespread, holding many migrants in ‘slave’ like conditions, brutally treated.
‘All work and no pay’ is one account by Cooney (2007b) of millions of workers particularly migrants not being paid. Many employers flouted the 1994 labor law to pay wages on time, some due to economic pressure, the squeeze from big corporates, but many were fraudulent and manipulative, with others paying ineffective penalties as they factored in the low cost of punishment from government inspections and many getting away with breaches. The bureaucratic Ministry regulations and accompanying State inactivity’s are widely regarded as failed, as was the arbitration and legal system. Although individuals had remedies, dealing with a resolution of collective grievances failed. Chan (2006) found widespread violation of earlier laws and CSR Codes. Whether the new requirements are more successful will be seen.
Unofficial ‘wildcat’ strikes over employers not paying wages have been widespread. Social disturbances and public protests involving millions of workers have been on the increase. Stories in the Chinese press reveal workers beaten to death by company thugs for protesting about not being paid!
One unpaid migrant worker was beaten to death at a building site in Guangdong Province and hundreds of his workmates who were striking to get delayed salaries were injured by thugs the building owner hired. The attackers, armed with shovels, steel pipes, axes, and knives, injured many ofthe strikers and killed Lei Mingzhong, a laborer from Kaixian County. Nearly 300 workers went on strike at the site after working for four months without payment, because the owner, a subsidiary of Shenzhen based Fuyuan Energy Group, had delayed paying the contractor millions of yuan. Having failed to coerce the workers to end the strike, Fuyuan then hired hundreds of thugs to fight them and force them back to work. Ye was reported to have led the thugs when they rushed the workers and beat them.
The workers, most of who were reported to have been empty-handed, suffered injuries in the fierce attack, even after police arrived at the scene. Lei was killed while two of his workmates were forced to jump from a high wall into the Dongjiang River. The thugs even threw rocks into the river after them, the newspaper said. Fuyuan Hydropower Co, a subsidiary of Fuyuan Group, plans to build a hydroelectric power station on Dongjiang River. With a total investment of 316 million yuan (US$41 million) from Fuyuan Group, the power plant is expected to produce 90 million kilowatt hours a year. Miao Shouliang, the boss of Fuyuan Group, was listed as the 19th richest real estate tycoon last year by Rupert Hoogewerf, a former Forbes China employee who established his own luxury business listing company — Hurun Report — in Shanghai. Shanghai Daily July 2, 2007.
The millions of migrant workers enduring chronic underpayment of wages that leads to social turmoil is one of China’s embarrassments.
The provisions
What are the provisions? Article 31 says wages for time worked have to be paid and on time. The new law ensures overtime and penalty rates are paid Article 32. Some 40% of overtime was not paid. The compliance with overtime is important to curb excessive hours, the pace of work and an easing up on exploitative work conditions.
The labor bureau can direct an employer to pay wages owed within a specified period, failing which an order for damages at between 50% and 100% of the amount outstanding can be made Article 85. The government policy is that employers have to take the new law seriously and they have to be punished efficiently if they do not pay wages. I advise reversing earlier abuses.
Liu Cheng said the policy was that migrant workers not being paid could now go without cost to a judge in a people’s court for a speedy ‘order to pay’ Article 31.
Formerly, the cost of application for the employee to get back wages, the long time taken, the legalities and pro-employer system meant the employers could violate the law. The policy is that these deficiencies are to end. Strategies that reduce the wages bill are to change.
The press reveal the labor administration department recouping huge amounts in unpaid wages. It is not easy for them to change to ensure compliance. It requires more resources, more inspectors, and implementation of workers’ interests.
Ross (2006:16) reports in the Pearl River Delta area 2 million migrant workers after going home for the annual Spring Festival failed to return because of the poor work conditions, a massive unorganised withdrawal of labour, a collective act of resistance. Some employers had to advertise ‘paying wages on time’ and led to some wage increases.
Wildcat strikes spread. The labor dispute settlement systems strained to respond to the huge number of grievances. They were prevalent from the high skilled workforce in IT, engineers, and white-collar university graduates. Ross (2006) recounts their stories – their dislike of the inadequate industrial relations system, their distrust of their companies, little loyalty with high turnover and mobility.
For Australian business, wages and penalties ought to be paid on time. Business has a responsibility to ensure their suppliers and contractors pay wages.
The practice of hiding non-compliance deep in the sub-contracting chain where suppliers could not ‘meet the bar’ has to be changed, or the good brand is sullied. There will be pressure on competitors (often more exploitive) from Hong Kong, Taiwan, Korea, and Japan to abide by the minimums. International solidarity from NGOs and unions can assist in this campaign to overturn not paying wages.
Crack-down on bonded and forced labour
The press had exposes of Chinese worked as slaves. ‘Shanxi Scandal Gives Urgency to Draft Labor Contract Law’ is one example of the public debates.
Chinese lawmakers deplored the forced labor scandal uncovered in north Shanxi Province and recommended that the top legislature urgently ratify the labor contract law and thus better ensure the legal rights of employees.
The investigation found that 2,036 of the 3,347 brick kilns had been devoid of any legal licenses and collectively employed 53,036 illegal workers. (The story was exposed first by Chinese bloggers). This scandal had emphasized the needs for stronger protection of employees’ legal rights. Items of the draft labor contract law could be applied to illegal labor cases such as the one in Shanxi. The forced labor scandal… sparked public outrage and grave concern among the upper echelons. The workers were treated as slaves, forced to work long hours without payment in brickyards, mines and other small works. Shanxi provincial governor formally apologized over the forced labor scandal, promising to use his full power to root out any more cases of such illegal practices.
Article 9 forbids employers when hiring to require employees to provide any surety. Nor can an employer collect property from the employee as collateral. The employer may not retain the employees’ resident identification cards or other papers.
Article 25 does not allow penalty clauses in contracts. Employers are prohibited from having a contract term making the worker pay a fine if in breach. However employers can recover training expenses expended from the worker leaving. Employers cannot limit employee mobility through the use of financial constraints, except, as we shall see below, in restraint of trade or non-compete clauses.
Government authorities promise crackdowns against these exploitative practices and to end forced or bonded labour, in its various disguises. International NGOs and unions can reinvigorate campaigns.
The ITUC (2008:15) ‘Forced Labour’ section covers prison labour, labour in ‘re-education’ camps and the trafficking of women and children where the government promises action. It has not signed the ILO Core Convention on Forced Labour.
Minimum contracts deemed
A NPC survey found less than 20% of small-to-medium companies had signed employment contracts with their employees. When employees had grievances, the lack of written contracts made it difficult for their rights to be enforced in the courts either individually or collectively. As there was no proof of an employment contract, the bureaucratic labour administration and the judges’ legal formalism ruled and the employer avoided liability to pay wages. Employer practice of deliberately avoiding responsibility was widespread through not having contracts.
Now employment contracts must be in writing. Failure to do so means the employer faces liability for double wages, Articles 10, 82. The new law deems a written contract to exist.
The minimum content has to be in the contracts Article 17.
Arbitration commissioners and judges have to rule that the labor law deems a contract to exist. Where the contract is invalid, the law sets out the way for determining compensation payable to employees and their minimum conditions. Comparisons locally or with regional government provisions and with collective agreements are used, Articles 10, 18, 28.
We shall see whether the past narrow legal formalism, that did not assist employees, is over and at least the minimums (still very low) are paid.
The labor bureau can order damages if the employer refuses to comply. Many companies already have set up minimum contracts. Nonetheless, there are avoidance devices familiar to labour lawyers to define workers as not ‘employees’ but contractors.
The employer is not to deceive, coerce or deny workers’ rights or to use violence, threats or unlawful restriction of personal freedom to compel a worker to work.
The principles of ‘lawfulness, fairness, equality, free will, negotiated consensus and good faith’ are to now govern the conclusion of the employment contract.
The new dispute resolution system is now free, with tighter time-lines and employee friendly processes.
The performance and amendment of employment contracts has a section.
Employer changes to work rules and union negotiation
The 2001 Labour Code had consultative rights for ‘employee councils and assemblies’ and the union on personnel issues in private and overseas companies. With co-partnership between management and the union hierarchy in the enterprise (more so in government), forms of consultation occurred over grievances. But there was no consultation where management dominated in non-union businesses and were hostile to unions.
In 2008, the employment contracts law states, Article 4:
Employer units shall establish and improve labor rules and regulations in accordance with the law to ensure that workers enjoy labor rights and discharge their labor obligations. Employer units seeking to formulate, revise, or decide on rules and regulations or significant matters that have a direct bearing on the immediate interests of their workers, such as those concerning remuneration, work hours, rest, leave, work safety and hygiene, insurance, benefits, employee training, labor discipline, and work quota management, shall determine the matters through negotiations conducted on an equal footing with trade unions or employee representatives, after employee representatives’ conferences or all the employees have held discussions and put forward proposals and comments.
This rule is important to put in practice. Management has to have internal company work rules that are consistent with the employment contract laws.
The work rules are discussed and negotiated with employees and the union. Chapter 5 Section 1 collective contracts require discussion and approval by employees. The union executes the contract. The Labor administrative authority has oversight, Article 51. If there is a breach, the union steps in, Article 55.
I advise that it is preferable to interpret ‘negotiations on an equal footing’ as ‘consent’ is required from employees and the union, rather than inadequate discussions. There is contest over the workplace practice in complying or not. The people’s court may determine company rules as invalid due to not negotiating with the union. Consequently, genuine worker and union agreement is preferable. Workers should enjoy labour rights.
Short-term contracts end
Previously, many private companies enforced contracts with employees for less than one year and with the same workers four times in one year or as a casual. Casualisation is prevalent and abused, along with all the job insecurities. Workplace and social grievances and tensions erupt.
Employers in 2008 have to change to greater job security and to more secure permanent contracts.
Over a period of time, short-term contracting and casualisation to avoid obligations such as accident pay, health benefits etc. will be reduced.
There are three types of contracts Article 12:
fixed term Article 13, for the task or project Article 15, and open-ended contracts without a termination date Article 14.
Article 14 requires that after two short-term contracts, a permanent open-term contract must be signed. The third open-term contract provides for health insurance etc.
The employer is now liable for severance pay of one month’s pay for each year of service.
The employer cannot change these fixed term contracts unilaterally, but by negotiation.
It is compulsory for those employees with service of no less than ten years, or who are ten years away from retirement to be placed on the more permanent contract. The social policy to protect older employees is put in place. The permanent contract is to be used when reemploying after a state owned enterprise is restructured.
Job security reform is significant as the renewal occurs following the conclusion of a fixed-term employment contract on two consecutive occasions.
Employers are advised to minimise past restrictions on employees in individual and collective contracts. No doubt educated and informed Chinese workers will insist.
Regulate part-time and reduce casualisation
In China, as elsewhere, many companies use casualised workforces. Job insecurity, abuse and unfairness are rife. The demand to have more job security is pressing. New provisions (if implemented) may reduce long-term casualisation.
I am not sure of the terminology in the provisions that use the category of ‘Part-Time Labor’, a ‘non-full-time engagement of labour’. This employment is remunerated by the hour. It is terminable at any time without notice or severance pay.
The policy is that the terms of employment are restricted to its status, that of a casual. There is an average of four hours daily and ‘the maximum remuneration settlement and payment cycle for part-time labor may not exceed 15 days.’ Article 72
This looks like a legitimate ‘casual’ position, but termed ‘Part-Time.’ It is yet to be seen how this is to be implemented in practice, but the policy is clear to improve the conditions of the precarious workforce. We shall see if casuals are still used for the predominantly unskilled, but this may be risky legally.
We shall see if the mediation and arbitration processes assist in reducing casualisation.
Reforming labour-hire
Chapter 5 Section 2 Placement Contracts is key reform in staffing. Employers lobbied against this strong regulation of ‘dispatch’ employees. The abuses and the widespread use of ‘out-sourcing’ to the many labour-hire or dispatch companies are to end. The growth of labour-hire firms may be curbed. Employers now have to comply with dispatch requirements articles on staffing services 57 to 62, 66, and 67.
There are not financial reasons for management to outsource sections of their workforce and to replace them with cheaper ‘dispatch employees.’
Article 57 requires dispatch employees from staffing firms to be hired permanently for not less than two years. There is a formal written contract with equal pay, the same rate and benefits as employees in the user firm in similar work Article 62. A minimum wage is paid even when not placed. The employee may join the user firm’s union Article 63.
Restrictions are a prohibition on user firms ‘on-selling’ dispatch employees to other firms Article 62; labour-hire is to be implemented ‘generally for short-term, supplementary and substitute positions’ Article 65; and employers may not arrange to have staffing firms to place employees with themselves or their subordinate units, Article 66.
Liu Cheng comments: ‘The employers say that this is very tough, but it is only a slogan. In practice, the assessment of discrimination will be difficult. But the tactics of labour- hire firms will not be as discriminatory.’
He was critical of the details of the outcome saying it was not tough enough on employers.
Article 22 treats labour-hire or dispatch companies and user employers as joint entities. Company avoidance with legal devices to make it difficult to identify the employer and with mergers, transfers and outsourcing was prevalent, and reform was necessary. There are provisions protecting employee entitlements in a transmission of business, Articles 33. 34. (Cooney 2007).
Dismissals at will changes
Chinese employers and overseas corporations opposed reforms to give employees more fair play at termination. The policy is to move termination law away from dismissal at will. Managers have to ensure job security is put in place for employees engaged on an ‘open-ended’ regular basis. Chapter IV Dissolution and Termination of Labor contracts Article 39, 40, 42, and 44.
Severance pay of one month’s pay for each year of service is introduced. There are the costs of terminating employees, such as fines for illegal dismissal.
Dismissal is to be allowed only on specific grounds: such as by consent; being incompetent; for serious misconduct; incapacitated by non-work related injury; for mass redundancies (where there are substantive and procedural requirements), and termination by 30 days notice.
An employer cannot dismiss for work related injury. Female employees are not to be dismissed for pregnancy. An employee with 15 years service and less than five years from retirement cannot be terminated.
The role of the union in the termination process is improved. Article 43:
Where an employer unit plans to dissolve a labor contract unilaterally, it shall give the trade union advance notice of the reasons. If the employer unit violates the provisions of laws and administrative statutes or the labor contract, the trade union has the right to demand that the employer unit take corrective action. The employer unit shall study the trade union’s opinions and notify the trade union in writing of the outcome of its handling of the matter.
In Article 41, the social interests of workers are protected in terminations over 20. It gives priority to those with long service, those who are the only ones in their families to be employed and whose families have a senior citizen or a minor who needs to be provided for. They have 30 days notice. The circumstances are explained to the union.
These regulations are an incentive for employers to use fair play on termination.
Employers should not use avoidance tactics, such as forms other than regular on-going contracts. The new mediation and arbitration system may operate like an unfair dismissal jurisdiction – we shall see.
The cost for companies is severance pay of one months pay for each year of service for most dismissals. Even with shorter terms, severance pay applies. If there is a breach, then the employer has to pay the penalty of double salary to the employee.
In practice Liu Cheng believes the risk is great and the economic consequences significant, and that there will be compliance. The policy is that the previous employer who terminates meets some of the costs of one month’s pay for each year of service. With increasing unemployment and the inadequacy of state provided unemployment insurance, such termination payments are fair and are intended to deter dismissal at will.
There will be some employers who use part-time and casual contracts, but most employers are moving away from putting many employees onto casual.
Project and short-term devices may be used, but this is risky. The policy is to deter ‘rolling’ specific task contracts. I argue the severance pay of one month’s pay for each year of service applies to projects. There may be avoidance devices to construct employees into other forms of ‘independent’ contract labour, but again this is risky.
Fair probation
Workers can no longer be on long probationary periods. An employer may stipulate only one probation period with any given worker and not less than 80% of the local minimum. The new standards are: less than one year contract, less than a month probation; 1 to 3 years, 2 months; not less than three years, 6 months. Articles 19. 21.
Non-competition clauses
The employers’ lobby changed earlier drafts detailing employer and employee obligations with a confidentiality clause, a non-compete clause for trade secrets or intellectual property. The employer may have a restrictive confidentiality clause with a professional or skilled employee or an employee who has the obligation to maintain the confidentiality of his employer’s trade secrets and who leaves Articles 23, 24. Employers lobbied for this wide coverage of employees.
The employer shall pay financial compensation to the employee on a monthly basis during the term of the competition restriction after the employee leaves. If the employee breaches the competition restriction provisions, he shall pay liquidated damages to the employer. There is less compensation for the employee affected, one month’s salary rather than one-year. Geographic restrictions are dropped. The geographic extent of the restriction is a matter between the parties.
I do not know if judges in 2008 will strike down manifestly unfair or unreasonable non-competes, Cooney et al (2007).
As the Chinese workforce move into high skilled technology companies described by Ross (2006) , these restrictions protect the interests of existing employers, not the new technology companies. They will inhibit the movement of professional, skilled labour and any employee covered. Liu Cheng had criticisms not deal with here. The State Ministry of Labour and Social Security promulgates more non-compete rules.
OHS compliance
Press reports on workplace deaths in construction and mining and OHS breaches are frequent. China has an appalling heath and safety record, with thousands of injuries and major OHS health problems for employees, despite the 2003 Work Safety Law allowing OHS work stoppages.
In 2008, OHS employee rights for a healthy and safe workplace are repeated. On hiring, employers have to answer employee OHS questions in Article 8.
HR management obligations are to allow employee and union OHS rights: Article 32.
Workers shall not be deemed to be in violation of their labor contracts if they refuse to perform dangerous operations directed in violation of rules and regulations or peremptorily ordered by management personnel at the employer unit. Workers have the right to criticize, report to the authorities, or file complaints against their employer units over working conditions that endanger their lives or health.
The government targets management practices flouting OHS. Orders are to improve compliance.
The ACFTU in 2008 has a stronger OHS policy. HR has scope for best practice OHS, ensuring employee and union rights. At a minimum, the employee voice on OHS will be stronger.
Australia’s OHS systems have much to offer China’s work places. Australia can accept training of China OHS inspectors, OHS workplace delegates and management. The report of the New Zealand Council of Trade Unions education and training on health and safety in mining in China is shows collaboration. Australian unions can assist a democratic model with elected OHS employee delegates with powers for compliance and rights for prevention.
Other rights at work
A regulation stops the excessive employer rorting of their withholding and recovering of ‘training monies’ for off-the-job professional, technical training or vocational training when an employee leaves. The provision limits costs employers can recover and liquidated damages to be paid by the employee.
Provisions on employer legal liability are in section 7. Rights for an employee complaining about a violation are given. The union provides support. The Labor administration authorities, from the State Council and at the autonomous regional levels and local people’s governments, step up compliance about these employment contract laws. Promulgations are at all levels of government.
In 2007, there were new laws regulating employment promotion (ITUC 2008:12).
There are new sexual harassment laws in T h e L a w on t h e P r o t e c t i o n o f t h e R i g h t s a n d I n t e r e s t s o f W o m e n . For example, G u a n g d o n g P r o v i n c e e x p l i c i t l y r e q u i r es e m p l o y e r s t o e s t a b l i s h i n v e s t i g a t i o n a n d c o m p l a i n t p r o c e d u r e s t o p r o t e c t w o m e n a g a i n s t s e x u a l h a r a s m e n t . T h e r e g u l a t i o n s r e q u i r e e m p l o y e r s t o c r e a t e secure safe w o r k e n v i r o n m e n t s. The Professor of Law, Beijing University promotes these legal requirements and debates the processes for sexual harassment cases. This is an important social debate.
The ITUC (2008) report has a section detailing the problems with gender discrimination, the lack of equal pay, not enforcing protections for pregnant employees, women first to be laid off, and discrimination against white collar and professional women workers.
I have not given an analysis of the employment contracts law, nor is this legal advice. The enhanced union role has been introduced. I now develop this further in the next post part two.
Footnotes
This paper develops my April 2007 Evatt Foundation on-line reports: ‘China’s New Labour Law The challenge of regulating employment contracts. China moves beyond WorkChoices,’ http://evatt.labor.net.au/publications/papers/193.html.
My interview with the ACFTU ‘Organising China’s Wal-Mart’ Evatt Foundation http://evatt.labor.net.au/publications/papers/194.html.
For the legal analysis of ‘China’s New Labour Contract Law’ Sean Cooney, Sarah Biddulph, Li Kungang, and Ying Zhu (Cooney et al 2007) the UNSW Law Journal vol 13 no 2 /11/2007.
Fang Lee Cooke ‘The Changing Dynamics of Employment Relations in China: An Evaluation of the Rising Level of Labour Disputes’ Journal of Industrial Relations, volume 50 No 1 February 2008. For Global Labor Strategies reports http://laborstrategies.blogs.com/global_labor_strategies/china/index.html
Cooney S (2007a) ‘China’s Labour Law. Compliance and Flaws in Implementing Institutions.’ November 2007 Journal of Industrial Relations volume 49, number 5, Page 673.
Cooney S (2007b) ‘Making Chinese Labour Law Work: The Prospects for Regulatory Innovation in the People’s Republic of China’ 30 FORD HAM INTERNATIONAL LAW JOURNAL 1050, 1081-1086. He analyses the failures of China’s workplace regulatory scheme; the complex ‘bureaucratic command and control’ system; inadequate compliance; dispute resolution system not working; lack of clear legal norms. He focuses on underpayment of wages; the failure of the 2003 legal rules; and proposes reform proposals with comments on the draft Employment Contract Bill; specific innovative regional workplace regulation; and the debates on this new national law.
White, C ‘Labor Law Challenges for Australian Companies in China’ Legalwise Law Conferences, Melbourne, 21/5/2008, Sydney 1/8/08. I urged lawyers advising Australian companies in China to comply with these laws.
Rolf Geffken (2006) Labour and trade unions in China (European Trade Union Institute for Research, Education and Health and Safety).
Kan Wang (2007) A Changing Arena of Industrial Relations in China What is happening after 1978 Renmin (People’s) University of China, Beijing.
I cite the Report by the International Trade Union Confederation (ITUC 2008). ‘Internationally Recognised Core Labour Standards in China Report for the WTO General Council Review of China Trade (Geneva, 21 and 23 May 2008). This is the world union’s criticism of China not abiding by core ILO rights for freedom of association and free unions and collective bargaining with the right to strike. The executive summary says: ‘A new labour contract law, providing specific penalties for failing to observe labour laws and regulations concerning contracts and related issues, may make a contribution to the application of standards.’ http://www.ituc-csi.org/ ACTU President Sharan Burrow is also President of the ITUC
See WTO ‘Reforms, including trade liberalization, have underpinned high growth but challenges remain’ WTO Trade Policy Review: China Press Release 23/5/2008. http://www.wto.org/english/tratop_e/tpr_e/tp299_e.htm
International IR controversy over the details saw opposition from AmCham and many corporation criticising the reforms and responses from international NGOs, unions and governments in support of the reforms. See Cooney (2007a, b).
Global Labor Strategies GLS on the contest between corporations and NGOs and unions ‘Behind the Great Wall of China. U.S. Corporations Opposing New Rights for Chinese Workers. Opposition may harm workers in the U.S. and other countries.’
For their 20/2/2007 reply, Global Labor Strategies: http://laborstrategies.blogs.com/global_labor_strategies/2007/07/chinas-new-cont.html
Liu Cheng travelled in 2006-7 to the US and Europe for support for the new labor laws, reports available.
ITUC (2008:5) for report on opposition by Chinese and foreign employers.
See Earl Brown ‘Chinese Labor Law Reform: Guaranteeing Worker Rights in the Age of Globalism’ JapanFocus 24/11/2006.
‘Multinationals Accused of Hypocrisy over China Labour Law Reform’ International Textile, Garment Leather Workers’ Federation 26/10/2006.
Anita Chan at the Contemporary China Centre, ANU recounted case studies in the 1990s of the worst forms of exploitation and the struggles and resistance from workers. The then labor laws and the compliance system were inadequate.
Chan (2006) ‘Organizing Wal-Mart: The Chinese Trade Union at a Crossroads’ www.japanfocus.org ‘China and the Global Sweatshop Lobby’ 18/12/2006 International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers Associations IUF http://www.iuf.org/www/en/
Chris White 
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