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In July 2005, a Japan-invested enterprise in Dalian Economic and Technological Development Zone in northeast China's Liaoning Province broke regulations by increasing the workload and reducing salaries for its workforce, which led to industrial action. In the end the strike was calmed down by negotiation and an agreement on a pay raise was reached. The successful walkout triggered a series of strikes among another 18 Japanese companies in the following three months, involving more than 20,000 employees.
Mass incidents like strikes might not be the perfect way to protect workers' rights and interests, but at least they have begun to realize the power of the collective when their interests are violated. Now it has become a more common reaction for employees to unite to protect themselves in China.
Is there a legal system that workers can resort to to protect their interests?
The Labor Law came into being at an early stage of the development of China's market-oriented economy, thus it doesn't quite fit into the present situation any longer.
A perfect labor law system should consist of legislation on five aspects including employment, labor relations, labor standards, labor dispute intermediation and social security.
The first two aspects are covered in the current draft laws on labor contracts and employment promotion.
As far as I know, the legislative body will publish a draft law on labor dispute intermediation and solicit public opinion this coming May. Labor legislation concerns both sides of labor relations and whether the government can be fair and just is crucial to creating successful labor legislation.
In what way can the Labor Contract Law protect workers' interests? It has been reported that the draft law encountered many problems when it underwent examination. Do you know why?
The Labor Contract Law contains many detailed regulations on protecting the rights and interests of workers. But the first draft failed to include the large number of part-time workers, many of whom are employed by foreign food firms such as KFC and McDonald's.
Therefore, taking opinions from the mass of part-time workers into consideration, the second draft expanded its sphere of application to include regulations on the employment of non-full-time employees.
Before a law is passed it is natural to see many different opinions appearing. In a broader sense, resistance comes from the worry that labor costs for a company might increase if employees' interests are overprotected, and this may affect the ability to attract foreign capital and hamper economic growth.
As an organization to protect the interests of employees, labor unions have failed to play an effective role in the past. However, in recent years they have become a more positive force-labor unions have been established in foreign firms and have intervened in issues of illegal employment practices. How do you see the developing role of unions?
A labor union is formed to limit the negative effects of the market economy and to safeguard the benefits of employees to achieve social justice and fairness. Employers don't seem to like labor unions very much yet they find it's a more efficient and rational way to settle labor-management disputes via labor unions than through direct contact between the employers and employees, which is troublesome and costly.
Actually the government also wants labor unions to play a bigger role. This March Chinese President Hu Jintao made a clear statement that in the process of building a harmonious society the country should bring labor unions into full play, organizing, guiding, serving the people and safeguarding their interests. So, in my opinion labor unions should and will play a more influential role in the future.
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