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The collective wage negotiation is looking for the way to influence as many companies as possible.
The payment of wages and salaries has always been a sensitive issue especially when a year ends. Source from All-China Federation of Trade Unions (ACFTU) says that collective wage negotiation is to be implemented, starting from multinationals and private enterprises.
Wang Yupu, the secretary of the Party Leadership Group and vice-president of ACFTU says on the 5th Session of ACFTU’s 15th Executive Committee that ACFTU has started a special 3-year plan to raise the penetration rate of collective wage negotiation in enterprises with labor unions to 60% by the end of 2011 and over 80% by the end of 2013.
According to “China Business News”, the plan is focusing on the World’s Fortune 500 in China and small-and-medium non-state-owned enterprises while the newest “Outlook Weekly” issue reports that multinationals, large CPC-governed enterprises and private enterprises are the focuses of the plan too.
Collective wage negotiation is a balanced negotiation between the labor representative and the management representative on the distribution, forms, and levels of the wages and salaries, based on which a collective contract is signed, thus to possibly eliminate labor disputes.
For the harmony between labor and capital
Actually, “Trial Act for Collective Wage Negotiation” has been issued since 2000; however, influenced by enterprises’ indifference, lagging enterprise systems and labor shortage, collective wage negotiation is hardly available in the enterprises in China, especially in the non-state-owned ones.
The year of 2010 is characterized by multiple labor disputes – from 2010 Foxconn suicides to Honda Strike in Guangdong, highlighting a challenge/crisis that ACFTU which stands for the benefit of the labor never faced.
ACFTU aimed to set up a labor union and promote collective wage negotiation in each enterprise in 2010. By the end of September 2010, 1.408 million collective contracts based on collective wage negotiation had been signed, covering 2.439 million enterprises with 185 million employees.
The 3-year plan is a follow-up focusing on three issues – small-and-medium non-state-owned enterprises, the implementation of collective wage negotiation in terms of regions and industries and the World’s Fortune 500 in China.
Moreover, state-owned enterprises are one of the focuses too. Wang Zhaoguo, who is a member of Political Bureau of the CPC Central Committee, the vice head of the National People’s Congress Committee and the president of ACFTU, points out on the 4th Session of ACFTU’s 15th Executive Committee that “state-owned enterprises must lead the way!” Still, the space for state-owned enterprises and especially large CPC-governed enterprises is significant.
Some enterprises in cities and provinces like Beijing, Qinghai and Tianjin have already started their own 3-year plans of collective wage negotiation when ACFTU puts its plan forward.
Wang Yupu insists that by the end of 2013, 90% of the enterprises in China set up labor unions with over 90% of their employees being the members. Considering the enterprises of different industries, how they implement the 3-year plan is a hot issue in 2010.
It is also noticed that eliminating labor disputes, raising the penetration rate of labor unions and maintaining the interests of the labor are the focuses of the five projects of ACFTU in 2011.
Implementation
Wei Jianxing pointed out in 1995 that a collective contract was critical to the implementation of the Labour Act when he was the president of ACFTU.
Labor disputes are mainly caused by unbalanced income distribution mechanism between the labor and the capital. Basically, the payroll standards of the employees are totally decided by the management level, regardless of the employees’ right to argue. There were 519,000 cases of labor disputes concerning income distribution from January to September 2009, lying 36.4% of all the cases of labor disputes while 89.4% of the cases of collective contract disputes involved payroll, overtime pay and compensation.
It is widely accepted that collective wage negotiation would help communication and negotiation on income distribution between the labor and the capital to avoid more labor disputes, which is for the benefits of both the employees and the management.
Viewed from the income distribution structure of the enterprises in China, low income levels of ordinary laborers and an absence of income growth mechanism are the two direct reasons for the wider and wider income gap.
It is mentioned in the suggestions of “12th Five-Year Program” that the ratio of income shall be raised at initial distribution to ensure healthy income growth. An expert involved reveals that ensured healthy income growth is included in the “Regulation on the Payment of Wages” which is under revision.
It is quoted from an anonymous expert on labor relation that ACFTU has been working hard to promote collective wage negotiation. The 3-year plan is subject to income raising and decent labor, which deserves encouragement, but more attention needs to be paid to the effect of collective wage negotiation.
“Labor unions have to perfect their self-evolution. With better recognition on labor unions and active attitude towards collective negotiation, the problem of missing party in negotiation is likely to be solved,” says the anonymous expert.
Either the labor or the capital is usually missing in the negotiation, especially in FDI enterprises and private enterprises – the capital is not willing to negotiate while the labor has the problems like no labor unions, not being aware of the rights or incapable of negotiating; or the labor unions do not dare to, do not willing to or cannot negotiate if they exist.
The other focus of the 3-year collective wage negotiation is collective wage negotiation in terms of regions and industries. The anonymous expert believes that it could be one of the strategies to cope with the problem of missing party in the negotiation by covering the small-and-medium non-state-owned enterprises to avoid inconvenience and difficulties brought by individual collective wage negotiations.
The payment of wages and salaries has always been a sensitive issue especially when a year ends. Source from All-China Federation of Trade Unions (ACFTU) says that collective wage negotiation is to be implemented, starting from multinationals and private enterprises.
Wang Yupu, the secretary of the Party Leadership Group and vice-president of ACFTU says on the 5th Session of ACFTU’s 15th Executive Committee that ACFTU has started a special 3-year plan to raise the penetration rate of collective wage negotiation in enterprises with labor unions to 60% by the end of 2011 and over 80% by the end of 2013.
According to “China Business News”, the plan is focusing on the World’s Fortune 500 in China and small-and-medium non-state-owned enterprises while the newest “Outlook Weekly” issue reports that multinationals, large CPC-governed enterprises and private enterprises are the focuses of the plan too.
Collective wage negotiation is a balanced negotiation between the labor representative and the management representative on the distribution, forms, and levels of the wages and salaries, based on which a collective contract is signed, thus to possibly eliminate labor disputes.
For the harmony between labor and capital
Actually, “Trial Act for Collective Wage Negotiation” has been issued since 2000; however, influenced by enterprises’ indifference, lagging enterprise systems and labor shortage, collective wage negotiation is hardly available in the enterprises in China, especially in the non-state-owned ones.
The year of 2010 is characterized by multiple labor disputes – from 2010 Foxconn suicides to Honda Strike in Guangdong, highlighting a challenge/crisis that ACFTU which stands for the benefit of the labor never faced.
ACFTU aimed to set up a labor union and promote collective wage negotiation in each enterprise in 2010. By the end of September 2010, 1.408 million collective contracts based on collective wage negotiation had been signed, covering 2.439 million enterprises with 185 million employees.
The 3-year plan is a follow-up focusing on three issues – small-and-medium non-state-owned enterprises, the implementation of collective wage negotiation in terms of regions and industries and the World’s Fortune 500 in China.
Moreover, state-owned enterprises are one of the focuses too. Wang Zhaoguo, who is a member of Political Bureau of the CPC Central Committee, the vice head of the National People’s Congress Committee and the president of ACFTU, points out on the 4th Session of ACFTU’s 15th Executive Committee that “state-owned enterprises must lead the way!” Still, the space for state-owned enterprises and especially large CPC-governed enterprises is significant.
Some enterprises in cities and provinces like Beijing, Qinghai and Tianjin have already started their own 3-year plans of collective wage negotiation when ACFTU puts its plan forward.
Wang Yupu insists that by the end of 2013, 90% of the enterprises in China set up labor unions with over 90% of their employees being the members. Considering the enterprises of different industries, how they implement the 3-year plan is a hot issue in 2010.
It is also noticed that eliminating labor disputes, raising the penetration rate of labor unions and maintaining the interests of the labor are the focuses of the five projects of ACFTU in 2011.
Implementation
Wei Jianxing pointed out in 1995 that a collective contract was critical to the implementation of the Labour Act when he was the president of ACFTU.
Labor disputes are mainly caused by unbalanced income distribution mechanism between the labor and the capital. Basically, the payroll standards of the employees are totally decided by the management level, regardless of the employees’ right to argue. There were 519,000 cases of labor disputes concerning income distribution from January to September 2009, lying 36.4% of all the cases of labor disputes while 89.4% of the cases of collective contract disputes involved payroll, overtime pay and compensation.
It is widely accepted that collective wage negotiation would help communication and negotiation on income distribution between the labor and the capital to avoid more labor disputes, which is for the benefits of both the employees and the management.
Viewed from the income distribution structure of the enterprises in China, low income levels of ordinary laborers and an absence of income growth mechanism are the two direct reasons for the wider and wider income gap.
It is mentioned in the suggestions of “12th Five-Year Program” that the ratio of income shall be raised at initial distribution to ensure healthy income growth. An expert involved reveals that ensured healthy income growth is included in the “Regulation on the Payment of Wages” which is under revision.
It is quoted from an anonymous expert on labor relation that ACFTU has been working hard to promote collective wage negotiation. The 3-year plan is subject to income raising and decent labor, which deserves encouragement, but more attention needs to be paid to the effect of collective wage negotiation.
“Labor unions have to perfect their self-evolution. With better recognition on labor unions and active attitude towards collective negotiation, the problem of missing party in negotiation is likely to be solved,” says the anonymous expert.
Either the labor or the capital is usually missing in the negotiation, especially in FDI enterprises and private enterprises – the capital is not willing to negotiate while the labor has the problems like no labor unions, not being aware of the rights or incapable of negotiating; or the labor unions do not dare to, do not willing to or cannot negotiate if they exist.
The other focus of the 3-year collective wage negotiation is collective wage negotiation in terms of regions and industries. The anonymous expert believes that it could be one of the strategies to cope with the problem of missing party in the negotiation by covering the small-and-medium non-state-owned enterprises to avoid inconvenience and difficulties brought by individual collective wage negotiations.