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January 12, 2009

China's Labor Law - One Year On

A new report in China International Business on the labor contract law (LCL) says:

Liu Cheng hails the LCL as “a great success,” citing the large and growing number of workers who have over the past year successfully brought their cases to labor arbitration committees. Workers are now much more informed of their rights and the LCL provides them with the tools to take legal action.

Another big step has been the government’s initiative to make arbitration free and easy. This is in stark contrast to policy prior to the law, when workers had to pay to file an arbitration claim themselves, discouraging most from the attempt. Alexandra Harney, author of The China Price, who interviewed hundreds of Chinese factory workers during her research for the book, contends that in today’s climate, “the government has made it much easier for workers to file complaints than before.”

Many more workers are taking their cases to the courts. According to Southern Weekend, in Tangxia Town Court, in the city of Dongguan, Guangdong Province alone, more than 7,500 cases related to labor disputes and company bankruptcies have been reported since the beginning of 2008, a considerable rise on previous years.

Cheng argues that the government no longer sees strikes and protests as awkward political events, and is therefore happy to let the courts lead the way. “China seems to use the courts as a pressure valve,” Harney suggests. She also says the government is happy allowing the All-China Federation of Trade Unions to promote awareness and encourage unionization under its chapters.

To read more:

http://www.cibmagazine.com.cn/Features/Trend.asp?id=786&labor_law_-_one_year_on.html

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