Labor relations in China
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As the
economy of China The China, People's Republic of China has an upper middle income Developing country, developing Mixed economy, mixed socialist market economy that incorporates economic planning through Industrial policy, industrial policies and strategic Five- ...
has rapidly developed, issues of
labor relations Labor relations is a field of study that can have different meanings depending on the context in which it is used. In an international context, it is a subfield of labor history that studies the human relations with regard to work in its broadest ...
have evolved. Prior to this reform, Chinese citizens were only allowed to work where they originated from. Since 1978 when China began labor force reforms the overwhelming majority of the labor force were either working at State owned enterprises or as farm workers in the rural countryside. However, over time China began to reform and by the late 90's many had moved from the countryside into the cities in hopes of higher paying jobs and more opportunities. The only connection between the countryside and the city soon became that there was a huge
floating population Floating population is a terminology used to describe a group of people who reside in a given population for a certain amount of time and for various reasons, but are not generally considered part of the official census count. A population is usual ...
connecting them. Independent unions are illegal in China with only the All-China Federation of Trade Unions permitted to operate. China has been the largest exporter of goods in the world since 2009. Not only that, in 2013 China became the largest trading nation in the world. As China moved away from their planned economy and more towards a market economy the government has brought on many reforms. The aim of this shift in economies was to match the international standards set by the
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and e ...
and other economic entities. The
All-China Federation of Trade Unions The All-China Federation of Trade Unions (ACFTU) is the national trade union center of the People's Republic of China. It is the largest trade union in the world with 302 million members in 1,713,000 primary trade union organizations. The ACFTU ...
(ACTFU) that was established to protect the interests of national and local trade unions failed to represent the workers, but instead failed to do so leading to the 2010 crackdowns. However these strikes were centered around foreign companies.


Background

One of the hallmarks of China's socialist economy was its promise of employment to all able and willing to work and job-security with virtually lifelong tenure. Reformers targeted the labor market as unproductive because industries were frequently overstaffed to fulfill socialist goals and job-security reduced workers' incentive to work. This socialist policy was pejoratively called the
iron rice bowl "Iron rice bowl" () is a Chinese term for an occupation with guaranteed job security. The Chinese term can be compared to the similar (but not identical) English concept of a "job for life". Traditionally, people considered to have such positions ...
. The
iron rice bowl "Iron rice bowl" () is a Chinese term for an occupation with guaranteed job security. The Chinese term can be compared to the similar (but not identical) English concept of a "job for life". Traditionally, people considered to have such positions ...
in 1978 ended collective farming and was then replaced by the "household responsibility system". It provided an informal market for farmers to increase prices above government ceilings placed on goods. In 1979–1980, the state reformed factories by giving wage increases to workers, which was immediately offset by sharply rising
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
rates of 6%–7%. In the previous year, the inflation rate only rose a small one percent. This was largely because of two elements, price controls were adjusted and there was limited economic reforms that regarded SOEs expenditures. The state remedied this problem, in part, by distributing wage subsidies. The reforms also dismantled the
iron rice bowl "Iron rice bowl" () is a Chinese term for an occupation with guaranteed job security. The Chinese term can be compared to the similar (but not identical) English concept of a "job for life". Traditionally, people considered to have such positions ...
, which meant it witnessed a rise in unemployment in the economy. In 1979, immediately after the iron rice bowl was dismantled, there were 20 million unemployed people. Official Chinese statistics reveal that 4.2% of the total urban workforce was unemployed in 2004, although other estimates have reached 10%. As part of its newly developing
social security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
legislation Legislation is the process or result of enrolled bill, enrolling, enactment of a bill, enacting, or promulgation, promulgating laws by a legislature, parliament, or analogous Government, governing body. Before an item of legislation becomes law i ...
, China has an unemployment insurance system. At the end of 2003, more than 103.7 million people were participating in the plan, and 7.4 million laid-off employees had received benefits. The 10-percent sample showed that approximately three-fourths of the labor force worked in the agricultural sector. According to the National Bureau of Statistics, in the mid-1980s more than 120 million people worked in the non agricultural sector. The sample revealed that men occupied the great majority of leadership positions. The average worker was about thirty years old, and three out of every four workers were under forty-five years of age. The working population had a low education level. Less than 40 percent of the labor force had more than a primary school education, and 30 percent were illiterate or semi-literate. In mid-1982 the overall unemployment rate was estimated to be about 5 percent. Of the approximately 25 million unemployed, 12 million were men and 13 million were women. The unemployment rate was highest in the northeast and lowest in the south. The unemployment rates were higher than those of East Asian, Southeast Asian, and Pacific island countries for which data were available but were lower than the rates found in North America and Europe. Virtually all of the unemployed persons in cities and towns were under twenty years of age. By the 1990s and 2000s,
agriculture Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...
has remained the largest employer, though its proportion of the workforce has steadily declined; between 1991 and 2001 it dropped from about 60% to 40% of the total. The manufacturing labor force has also become smaller at a slower rate, partially because of reforms implemented at many of the state-run enterprises. Such reforms and other factors have increased
unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for Work (human activity), w ...
and
underemployment Underemployment is the underuse of a worker because a job does not use the worker's skills, is part-time, or leaves the worker idle. Examples include holding a part-time job despite desiring full-time work, and overqualification, in which the em ...
in both urban and rural areas. Women have been a major labor presence in China since the People's Republic was established. Some 40–45 percent of all women over age 15 are employed. China's estimated employed labor force in 2005 totaled 791.4 million persons, about 60% of the total population. During 2003, 49% of the labor force worked in
agriculture Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...
,
forestry Forestry is the science and craft of creating, managing, planting, using, conserving and repairing forests, woodlands, and associated resources for human and environmental benefits. Forestry is practiced in plantations and natural stands. Th ...
, and
fishing Fishing is the activity of trying to catch fish. Fish are often caught as wildlife from the natural environment, but may also be caught from stocked bodies of water such as ponds, canals, park wetlands and reservoirs. Fishing techniques inclu ...
; 22% in
mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic via ...
,
manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to a r ...
,
energy In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of heat a ...
, and
construction Construction is a general term meaning the art and science to form objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and com ...
industries; and 29% in the
services Service may refer to: Activities * Administrative service, a required part of the workload of university faculty * Civil service, the body of employees of a government * Community service, volunteer service for the benefit of a community or a p ...
sector and other categories. In 2004 some 25 million persons were employed by 743,000
private enterprise A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...
s. Urban wages rose rapidly from 2004 to 2007, at a rate of 13 to 19% per year with average wages near $200/month in 2007. In the Seventh National Population Census conducted by the
National Bureau of Statistics of China The National Bureau of Statistics (), abbreviated as NBS, is an deputy-cabinet level agency directly under the State Council of the People's Republic of China. It is responsible for collection, investigation, research and publication of stati ...
the population in China is 1.4 billion. China's population growth has slowed since the 20th century and has maintained a mild growth in population. The average household size in China is 2.62 people, this can be attributed to the rise in better work opportunities and conditions for those living in the city. In higher education, there were 218.36 million people with a university level of education. In addition, illiteracy rates dropped from 4.08% to 2.67%. The reform and push for education in China has led them to create more skilled workers centered around urban areas. Regarding Urban and rural populations thee are 901.99 million living in urban spaces which account for 63.89% of the population compared to 509.79 million people living in rural areas of China which account for the 36.11% remaining percent. The continuous shift between rural workers migrating into cities for more opportunities continue. This can be attributed to growth in industrialization, information, and agricultural modernization. Many of these rural residents permanently left their homes to gain permanent urban residency. However, not all have been able to move the transition smoothly. The number of people who fall under the "
floating population Floating population is a terminology used to describe a group of people who reside in a given population for a certain amount of time and for various reasons, but are not generally considered part of the official census count. A population is usual ...
" meaning they are living in an area that is not where they are originally registered from totals 492.76 million. Of this population 124.84 million work in other provinces in China from where they live. Furthermore, this exhibits that China needs to reform much of their labor as migrant workers are moving all around the country in search of work. This is a result of market forces penetrating into China in the early eighties that have brought on a plethora of issues, one of them including the "
floating population Floating population is a terminology used to describe a group of people who reside in a given population for a certain amount of time and for various reasons, but are not generally considered part of the official census count. A population is usual ...
". The basis for these workers are that they theoretically could not access housing and other things that urban hukous could access. Despite improvements in living standards, much of the labor force continues to work under horrendous conditions. As noted by
Kenichi Ohmae is a Japanese organizational theorist, management consultant, Former Professor and Dean of UCLA Luskin School of Public Affairs, and author, known for developing the 3C's Model. Biography Born in 1943 in Kitakyūshū, Ohmae earned a BS in ...
: "China exhibits capitalism in the rawest form. A factory manager in Guangzhou finds that the eyesight of some workers deteriorates as a result of the work they do. He fires them with one week’s pay. They are no longer his responsibility. Were a Japanese manager to act like this, he would risk imprisonment. Were a U.K. firm to do this, it might be both sued and prosecuted."


All-China Federation of Trade Unions

The
All-China Federation of Trade Unions The All-China Federation of Trade Unions (ACFTU) is the national trade union center of the People's Republic of China. It is the largest trade union in the world with 302 million members in 1,713,000 primary trade union organizations. The ACFTU ...
(ACFTU) was established in 1925 to represent the interests of national and local
trade union A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ( ...
s and trade union councils. The ACFTU reported a membership of 130 million, out of an estimated 248 million urban workers, at the end of 2002. Chinese trade unions are organized on a broad industrial basis. Membership is open to those who rely on
wage A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as ''minimum wage'', ''prevailing wage'', and ''yearly bonuses,'' and remuner ...
s for the whole or a large part of their
income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. For ...
, a qualification that excludes most agricultural workers. In theory, membership is not compulsory, but in view of the unions' role in the distribution of
social benefits Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet Basic needs, basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refe ...
, the economic pressure to join is great. The lowest unit is the enterprise union committee. Individual trade unions also operate at the provincial level, and there are trade union councils that coordinate all union activities within a particular area and operate at county, municipal, and provincial levels. At the top of the movement is the ACFTU, which discharges its functions through a number of regional federations. In theory the appropriate trade union organizations have been consulted on the level of
wage A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as ''minimum wage'', ''prevailing wage'', and ''yearly bonuses,'' and remuner ...
s as well as on wage differentials, but in practice their role in these and similar matters has been insignificant. They have not engaged in
collective bargaining Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The i ...
or
general strikes A general strike refers to a strike action in which participants cease all economic activity, such as working, to strengthen the bargaining position of a trade union or achieve a common social or political goal. They are organised by large coa ...
, as their principal duties have included assisting the party and promoting production. In fulfilling these tasks, they have had a role in enforcing labor discipline. From the point of view of the membership, the most important activities have concerned the
social Social organisms, including human(s), live collectively in interacting populations. This interaction is considered social whether they are aware of it or not, and whether the exchange is voluntary or not. Etymology The word "social" derives from ...
and
welfare Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
services. Thus, the unions have looked after
industrial safety Occupational safety and health (OSH), also commonly referred to as occupational health and safety (OHS), occupational health, or occupational safety, is a multidisciplinary field concerned with the safety, health, and welfare of people at ...
, organized social and cultural activities, and, provided services such as clinics, rest and holiday homes, hostels, libraries, and clubs. They also administer
old-age pension A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...
s, workers' insurance,
disability Disability is the experience of any condition that makes it more difficult for a person to do certain activities or have equitable access within a given society. Disabilities may be Cognitive disability, cognitive, Developmental disability, dev ...
benefits, and other welfare schemes. More recently, however, reforms of the
social security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
system have involved moving the responsibility for
pension A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...
s and other welfare to the provinces.


Trade Union law

The Trade Union Law in China forces the all trade unions in China dependent with the Communist Party of China. According to Article 4 of Trade Union Law of the People's Republic of China, which was passed in 1992, and revised in 2001 and 2009, "The trade union must abide by and uphold the Constitution, take the Constitution as the fundamental activity criterion, center on economic construction, adhere to the socialist road, adhere to the
people's democratic dictatorship People's democratic dictatorship () is a phrase incorporated into the Constitution of the People's Republic of China. The premise of the "People's democratic dictatorship" is that the CCP and state represent and act on behalf of the people, but ...
, adhere to the leadership of the Communist Party of China, adhere to Marxism-Leninism,
Mao Zedong Thought Maoism, officially called Mao Zedong Thought by the Chinese Communist Party, is a variety of Marxism–Leninism that Mao Zedong developed to realise a socialist revolution in the agricultural, pre-industrial society of the Republic of Chi ...
and
Deng Xiaoping Theory Deng Xiaoping Theory ( zh, s=邓小平理论, p=Dèng Xiǎopíng Lǐlùn), also known as Dengism, is the series of political and economic ideologies first developed by Chinese leader Deng Xiaoping. The theory does not reject Marxism–Leninism ...
, adhere to reform and opening up, Carry out work independently in accordance with the trade union charter."


Labor laws

In China there exist labor laws which, if fully enforced, would greatly alleviate common abuses such as not paying workers. In 2006, a new labor law was proposed and submitted for public comment. Enacted in 2008, the
Labor Contract Law of the People's Republic of China Labour or labor may refer to: * Childbirth, the delivery of a baby * Labour (human activity), or work ** Manual labour, physical work ** Wage labour, a socioeconomic relationship between a worker and an employer ** Organized labour and the labour ...
permits
collective bargaining Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The i ...
in a form analogous to that standard in Western economies, although the only legal unions would continue to be those affiliated with the
All-China Federation of Trade Unions The All-China Federation of Trade Unions (ACFTU) is the national trade union center of the People's Republic of China. It is the largest trade union in the world with 302 million members in 1,713,000 primary trade union organizations. The ACFTU ...
, the Communist Party's official
union Union commonly refers to: * Trade union, an organization of workers * Union (set theory), in mathematics, a fundamental operation on sets Union may also refer to: Arts and entertainment Music * Union (band), an American rock group ** ''Un ...
organization. The new law has support from labor activists, but was opposed by some foreign corporations, including the
American Chamber of Commerce The United States Chamber of Commerce (USCC) is the largest lobbying group in the United States, representing over three million businesses and organizations. The group was founded in April 1912 out of local chambers of commerce at the urging ...
and the European Chamber of Commerce. There is some expectation that the law would be enforced. In 2010 a substantial increase in labor related cases brought to court in 2008 was reported. As per article 36 and article 41 of newly amended Chinese Labour law, the permissible working hour has been set that legally restricts employers from forcefully making workers overwork. According to the article 36 of the law, laborers can not be made work for more than 8 hours a day making 44 hours a week. However, the laws have been violated frequently and are not strictly enforced by regulators. A 2019 survey showed the actual average work time to be about 47 hours, with about 62% reporting actually working more than 40 hours a week. In 2021, the Chinese government announced that it would regulate the
996 working hour system The 996 working hour system () is a work schedule practiced by some companies in the People's Republic of China. It derives its name from its requirement that employees work from 9:00 am to 9:00 pm, 6 days per week; i.e. 72 hours per week. A num ...
. In 2020 a law was introduced which banned the use of multiplayer video games for the purposes of organizing a labor union. In the same year, due to COVID-19 Pandemic, the government allowed enterprises to keep adjustment of salaries optional and thereby enabling the business to refrain from offering wage hike to the workers.


Foreign companies

Foreign direct investment (FDI) in China has increased from $1.8 billion in 1983 to $691.9 billion in 2006 . According to BBC China has overtaken the US as the world's top country for direct foreign investment. Over the years this has been able to happen as the Chinese government has gradually the amount of foreign business that can operate in China. As these restrictions are pulled back in China and more foreign companies begin to invest and maybe move their operations that China needs to reform to not allow any malpractices to continue. An ongoing effort to organize Chinese operations of foreign companies succeeded in 2006 at
Wal-Mart Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
. Wal-Mart was the most publicized case in China where they failed to recognize the ACFTU unions resulting in Wal-Mart agreeing to unionize all 62 Wal-Mart super stores. The campaign is projected to include
Eastman Kodak The Eastman Kodak Company (referred to simply as Kodak ) is an American public company that produces various products related to its historic basis in analogue photography. The company is headquartered in Rochester, New York, and is incorpor ...
,
Dell Dell is an American based technology company. It develops, sells, repairs, and supports computers and related products and services. Dell is owned by its parent company, Dell Technologies. Dell sells personal computers (PCs), servers, data ...
and other companies. It was reported in 2008 that problems with sweatshops persist. By Fall, 2008 it was apparent that union organizing efforts were widespread with emphasis on foreign corporations. Multinational Corporations are the driving force behind China's labor system. However that leads the outcome of this to be uncertain for the future as foreign corporations push for better working environments while also attempting to keep their costs down. It is unclear how to operate and create a sustainable work environment in China.


Floating Population

In China, more often than not citizens living in the countryside and rural areas have to move to find work. In China there are an estimated 150 million members of this "
floating population Floating population is a terminology used to describe a group of people who reside in a given population for a certain amount of time and for various reasons, but are not generally considered part of the official census count. A population is usual ...
" who often find themselves migrating away from their homes and families to urban cities and areas. More often than not these workers spend up to 18 hours a day working in dangerous conditions for only $100 dollars a month. These workers often don't sign a contract so as a result they are offered no vacation time or overtime pay. High population allows contractors and companies to abuse these workers for labor because they are so easily replaceable. However the issue is not whether that Chinese labor standards are too low, because according to the 1994 Labor Law, sought to "require employers to sign contracts with workers that guarantee minimum wage, monthly distribution of wages, a forty-four-hour work week, mandatory rest and vacation, and overtime pay". The Chinese labor laws are even more generous than in some developed countries however, these standards are ignored by both employer and employee often. The reason for which the labor standards in China are not enforced is due to the lack of incentive for any local or national official to do so. Many of these officials' performance evaluations are primarily focused on economic growth within their respected area. Not only this, the motives of these officials are generally viewed above the needs of a highly replaceable, uneducated worker who is from a different part of the country.


Honda strikes and other events in 2010


Honda

In May 2010 a strike was permitted to proceed against a Honda transmission and parts plant employing 1,900 in
Foshan Foshan (, ), alternately romanized as Fatshan, is a prefecture-level city in central Guangdong Province, China. The entire prefecture covers and had a population of 9,498,863 as of the 2020 census. The city is part of the western side of the ...
. The strike, which began on 17 May 2010, has resulted in suspension of operations at 4 Honda assembly plants. The main issue appears to be money with a substantial raise being demanded. Wages at the plant currently average $150 a month, a rate somewhat low for the area. The workers involved are mostly young high school and vocational school graduates with no apparent political agenda. A 24% wage increase was offered by Honda which for many workers would be an increase of about 366 renminbi ($54) a month. News reports on 5 June 2010 reported settlement of the strike with a pay raise of about 34% and other benefits giving workers at the plant a wage of about 300 dollars a month. A second strike, this time at an exhaust-systems plant, also in Foshan, followed. And a third, at a Honda lock plant in
Zhongshan Zhongshan (; ) is a prefecture-level city in the south of the Pearl River Delta in Guangdong province, China. As of the 2020 census, the whole city with 4,418,060 inhabitants is now part of the Guangzhou–Shenzhen conurbation with 65,565,622 i ...
, where workers demanded the right to form an independent union. The strike at the Zhongshan was broken in a few days by a combination of concessions and hiring replacement workers."A Labor Movement Stirs in China"
article by Keith Bradsher in ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'' 10 June 2010
"With Concessions, Honda Strike Fizzles in China"
article by Keith Bradher in ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'' 13 June 2010


Foxconn

On 1 June 2010 it was announced by Foxconn Technology Group, a major manufacturer of electronic products for export, that they would increase wages by 30%. For example, a worker previously paid 900 renminbi ($131.77) will be paid 1,200 renminbi effective immediately. Foxconn had been plagued by worker shortages and a number of worker suicides. A few days later a further increase was announced raising wages of employees who have worked for the company for three months to $294 a month. Experts such as Andy Xie believe that there is ample scope for increased wages in China due to its superior infrastructure as compared to competing low wage alternatives.


Toyota

On 18 June 2010 there were news reports of strikes at two Toyota parts plants in
Tianjin Tianjin (; ; Mandarin: ), alternately romanized as Tientsin (), is a municipality and a coastal metropolis in Northern China on the shore of the Bohai Sea. It is one of the nine national central cities in Mainland China, with a total popul ...
, both operated by a Chinese subsidiary Toyoda Gosei. On 22 June 2010 it was reported that a Toyota assembly plant had been closed due to a strike at a supplier.


Minimum wage increases and other events

Effective 1 July 2010 the minimum wage in Beijing was raised 20% to 960 renminbi ($140) a month. In
Shenzhen Shenzhen (; ; ; ), also historically known as Sham Chun, is a major sub-provincial city and one of the special economic zones of China. The city is located on the east bank of the Pearl River estuary on the central coast of southern province ...
the minimum wage will be increased to 1,100 renminbi, about $161 a month in July. In June 2010 there were reports of several other incidents including one in which a government controlled ACFTU union was reported to be negotiating regarding wages with Kentucky Fried Chicken. On 10 June 2010 strikes were reported in 5 additional cities. A copy-cat strike at a former state-owned, now privatized, textile factory in
Pingdingshan Pingdingshan (), also known as Eagle City ( zh, s=鹰城, p=Yīngchéng, t=鷹城), is a prefecture-level city in central Henan province, China. It had 4,904,701 inhabitants at the 2010 census whom 1,756,333 lived in the built-up (or metro) are ...
, the Pingdingshan Cotton Textile Co., where workers with 20 years service toil for little more than $100 a month was reported on 8 June 2010 by ''
The Toronto Star The ''Toronto Star'' is a Canadian English-language broadsheet daily newspaper. The newspaper is the country's largest daily newspaper by circulation. It is owned by Toronto Star Newspapers Limited, a subsidiary of Torstar Corporation and part ...
''. According to the ''Star'' information about such strikes is not being publicized inside China; information about strikes involving foreign or Taiwanese owned factories often receives more attention."Labour strife rolls across China:
Textile workers toiling for pennies say they’ve had enough" article by Bill Schiller in ''
The Toronto Star The ''Toronto Star'' is a Canadian English-language broadsheet daily newspaper. The newspaper is the country's largest daily newspaper by circulation. It is owned by Toronto Star Newspapers Limited, a subsidiary of Torstar Corporation and part ...
'' 8 June 2010
During the initial Honda strikes the media in China was permitted to report on them, but as strikes spread reporting was suppressed.


TESCO Jinhua

Workers at Tesco in the city of Jinhua, in Zhejiang province, which is due to close at the end of the year 2011, became concerned it would shut earlier after it began discounting goods. They asked management to pay them the overtime they were due and terminate their contracts so they would receive wages immediately, according to Zhejiang Online. The workers may have been alarmed by previous cases in China where bosses have closed businesses overnight and fled without paying workers. Workers feel that some will have no choice but to leave and argue they should be entitled to one month's pay for each year of employment, the compensation set out in redundancy laws. "Another major factor is that workers are much more determined to stand up for their rights and interests than five years ago … They are much more aware of what they are entitled to, not only legally, but what they feel they eedto have a decent living for example. There's a higher sense of self-worth". More than 100 workers blockaded a Tesco in Jinhua. (source Zhejiang Online)


State-owned enterprises in China

State Owned Enterprises (SOEs) are an important piece to the Chinese economy. These institutions have gained an important role in the global economy today. In 2000 there were only 27 SOEs in the
Fortune Global 500 The ''Fortune'' Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by ''Fortune'' magazine. Methodology Until 1989, it listed onl ...
compared to 2017, there are 102. Only 9 of the 27 SOEs in 2000 were from China compared to 75 of the 102 SOEs they account for in 2017.  This increase has led to many more Chinese citizens obtaining stable jobs that also put them at odds with those working at foreign companies.


Slave labor

Forced labor Forced labour, or unfree labour, is any work relation, especially in modern or early modern history, in which people are employed against their will with the threat of destitution, detention, violence including death, or other forms of ex ...
exists in the Chinese system under both legal and illegal guises. Unfree labor in China is not generally addressed by the Chinese authorities, local news organizations, or local NGOs as it is considered a sensitive subject.


Brick kiln slavery

Brick kilns in China, like around the world, have been the site of unfree labor with most enslaved laborers being the youth, the elderly, and mentally disabled adults. Local communities and authorities are often involved in the trafficking of the victims. These workplaces are knows as “black kilns.” In 2007 a particularly gruesome case came to light as the result parents organizing to find their kidnapped children.


Forced internships

Student's in China's vocational schools are forced to accept minimally paid and unpaid internships at local manufacturing firms, often completely outside the industry which the student is being trained to go into. Students are threatened with having their graduation withheld if they do not participate in these internships. Firms which have faced allegations of using forced student labor include foreign manufacturing giants
Foxconn Hon Hai Precision Industry Co., Ltd., trading as Hon Hai Technology Group in China and Taiwan and Foxconn internationally, is a Taiwanese multinational electronics contract manufacturer established in 1974 with headquarters in Tucheng, New T ...
and Quanta.


Construction industry

China's construction industry is closely regulated and many of those working in it are illegal migrants without work permission. Workers regularly face a lack of formal employment contracts, wage withholding, excessive and illegal overtime, and a complete dependence on their employer for food and shelter. Wages are often withheld as long as a calendar year. Around
Chinese New Year Chinese New Year is the festival that celebrates the beginning of a New Year, new year on the traditional lunisolar calendar, lunisolar and solar Chinese calendar. In Sinophone, Chinese and other East Asian cultures, the festival is commonly r ...
it is common for workers in the construction to protest their wage arrears. It is estimated that half of Chinese construction workers have had their wages withheld at some point in their career. In 2017 Ministry of Human Resources and Social Security announced that wage arrears would be eradicated by 2020.


Xinjiang

In March 2020, the Chinese government was found to be using the Uyghur minority for forced labor, inside sweat shops. According to a report published then by the Australian Strategic Policy Institute (ASPI), no fewer than around 80,000 Uyghurs were forcibly removed from the region of
Xinjiang Xinjiang, SASM/GNC: ''Xinjang''; zh, c=, p=Xīnjiāng; formerly romanized as Sinkiang (, ), officially the Xinjiang Uygur Autonomous Region (XUAR), is an autonomous region of the People's Republic of China (PRC), located in the northwest ...
and used for forced labor in at least twenty-seven corporate factories. According to the Business and Human Rights resource center, corporations such as
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, BMW,
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, Gap, H&M,
Inditex Industria de Diseño Textil, S.A. (Inditex; , ; ) is a Spanish multinational clothing company headquartered in Arteixo, Galicia, in Spain. Inditex, the biggest fast fashion group in the world, operates over 7,200 stores in 93 markets worldwide. ...
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, Puma, PVH,
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, and UNIQLO have each sourced from these factories prior to the publication of the ASPI report. Numerous other allegations of forced labor related to the
Xinjiang re-education camps The Xinjiang internment camps, officially called vocational education and training centers ( zh, 职业技能教育培训中心, Zhíyè jìnéng jiàoyù péixùn zhōngxīn) by the government of China, are internment camps operated by ...
have been made since 2017. In addition to working within the camps after release detainees are sent to factories for a mandatory work period often measured in months, people who refuse the forced labor are sent back for additional re-education.


Hukou System

''Hukou'' is a legal document that contains records of a households basic information. It was introduced over 60 years ago and is an important tool that the government uses to monitor its population. However, many criticize that the ''
hukou ''Hukou'' () is a system of household registration used in mainland China. The system itself is more properly called "''huji''" (), and has origins in ancient China; ''hukou'' is the registration of an individual in the system (''kou'' lit ...
'' system prevents the flow of free labor, leaves workers idling, while sustaining economic losses. More recently China has been trying to reform this system as a response to the criticisms. How the Hukou system works is that each household classifies the residents based on their hometown or where they were born. This especially limits the mobility of Chinese laborers as transference of ''
Hukou ''Hukou'' () is a system of household registration used in mainland China. The system itself is more properly called "''huji''" (), and has origins in ancient China; ''hukou'' is the registration of an individual in the system (''kou'' lit ...
'' is only granted in certain cases or when one fulfills the criteria that the government has set. Usually this includes information regarding one's level of education and technical experience. However, this process becomes more complicated in larger cities as many are trying to find work. This has created an imbalance as many flock towards China's cities. As of 2014 there were over 274 million rural workers in cities which accounts for over 36% of the total workforce . Although these workers are in the city, it is harder for them to find and keep jobs compared to those who hold urban Hukous. This also leads to them not being able to acquire basic social entitlements including their children. However the Chinese government places
Hukou ''Hukou'' () is a system of household registration used in mainland China. The system itself is more properly called "''huji''" (), and has origins in ancient China; ''hukou'' is the registration of an individual in the system (''kou'' lit ...
reform at the top of their list. This places a rift between the urban hukous and the rural hukou holders as with holding an urban hukou you are offered more opportunities, which would diminish its value if rural hukou owners started to acquire them. However, since 2014 the Chinese government has gradually blurred the lines between urban and rural hukous. China is seeking to also increase the amount of urban residents by granting 100 million urban hukou to rural hukou owners by 2020. Furthermore, China has attempted to lessen the requirements for urban hukou seekers in hopes of obtaining a more mobile workforce while also bringing children out of the countryside at the same time because with the lessened urban hukou requirements more children and families can move into the city for a better life.


See also

*
China Labour Bulletin China Labour Bulletin (CLB) is a non-governmental organization that promotes and defends workers' rights in the People's Republic of China. It is based in Hong Kong and was founded in 1994 by labour activist Han Dongfang. Overview CLB advocates ...
*
Hukou system ''Hukou'' () is a system of household registration Civil registration is the system by which a government records the vital events ( births, marriages, and deaths) of its citizens and residents. The resulting repository or database h ...


Notes


External links


Text of the Labor Contract Law of the People's Republic of China
includes supplementary materials {{Economy of China