Thursday, 25 September 2014

ER in China- A transformation

Hi everyone, for this blog post I am going to quickly try to outline some of the change the Chinese ER system has been through over the past few decades and some background on this time.

The ER system in China has been through large changes, particularly in the last 30 years as China has moved towards a market economy and has become the 'world's factory'.


It has undergone tremendous transformation along with China’s journey towards a market economy in 1978. After 30 years of economic transition, China has become the ‘factory of the world’.
In 2008 (the 30th anniversary of economic reform) China introduced a series of new labour laws, which signalled it's entry into a new phase of ER development. These laws saw the promotion of collective bargaining, the promotion of wage negotiation and a union organisation campaign. These changes led to China having of the highest union densities as well as collective bargaining coverage ( a process that was almost unknown till the early 1990's). 

The reason behind these new laws being introduced could be the explosive growth in social conflicts as well as labour disputes in the large two decades. Collective protests incidents from 10,000 to 60,000 in the span of ten years, nearly 50% of these protests were labour issues which have become a source of social tension in China.

Following this, in the early 2000's the new Party State leader shifted the party's policy towards people centred development and building a harmonious society which led to the following changes to laws:
1) Revision of Trade Union Law
2) Establishment of a national tripartite consultation committee for the coordination of IR (known as the NTC)
3) The above committee issued the following- 'Joint Notification for Promotion of Collective Bargaining and Collective Agreements'
4) Trade Unions announced their new policy of actively organising rural migrant workers
5) Trade Unions began to elect enterprise union leaders

Hope this gives some background information on China and how these changes came about.

This was the source: http://www.ilera-directory.org/15thworldcongress/files/papers/Track_4/Wed_W2_LEE,Changhee.pdf




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