Foreign businesses and state-owned enterprises (SOEs) in China care about their employees more, and are more willing to cooperate with trade unions, than private companies and businesses from Hong Kong and Taiwan, said an official with the All-China Federation of Trade Unions.
In a recent interview with People's Daily Online about China's Labor Contract Law, which was effective as of January 1, 2008, Xie Liangmin, deputy director of the legal department at the Federation, stated that the attitude in dealing with the trade unions and the industrial relationship varied among enterprises with different ownership.
Generally, he said, foreign businesses in China --- those from developed economies in particular --- always try to resist the possibility of having trade unions, but have more respect for the rights of employees; and are more cooperative with trade unions, once they are established in the companies.
Xie thought the reason was largely due to the differences in the way trade unions function in China and in other countries. Trade unions are very powerful in bargaining with employers and strikes: they can create many social and economic problems. In China, trade unions tend to secure a “harmonious” industrial relationship once the company protects the rights and interests of employees according to the law.
In SOEs, wherein there is a tradition of having trade unions, trade unions are performing their duties effectively.
In private businesses; however, the new situation arouses concern. Xie complained that bosses did everything they could to make it difficult not only to set up trade unions, but also for trade unions to function well.
The role of Chinese trade unions has been fluctuating since the economy began moving away from a planned system to a more market-oriented system. In a planned economy, the government set the production goals and salaries for enterprises. There is no conflict of interest between the management and workers.
But that has completely changed, explained Xie. In a market economy, particularly in the private sector, your boss decides your salary and welfare. There is a conflict of interest between bosses and employees when companies try to earn more money at a lower cost.
In this case, trade unions have a lot to do to protect the rights and interests of employees. They are supposed to shoulder the responsibility of bargaining with the bosses.
By People's Daily Online
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