Labour Pains

The laws,enacted in 2008,were intended to channel worker frustrations through a system of arbitration and courts so no broader protest movements would threaten political stability. But the recent strikes and a surge in arbitration and court cases underscore new challenges in China.

Chinese workers still do not have the right to form unions independent of the one controlled by the government. The Labour Contract Law of 2008 tries to guarantee contracts for all full-time employees,but leaves details vague. Another law enacted in May 2008 helped streamline the system of arbitration,but civil courts and arbitration committees have been overwhelmed by a flood of cases.

The leap in worker consciousness is best reflected in the rising number of labour disputes that have gone to arbitration or to the courts. In 2008,nearly 700,000 labour disputes went to arbitration,almost double the number in 2007,according to the Ministry of Human Resources and Social Security. Last year’s numbers were roughly the same as those in 2008. Chinese workers or employers can also appeal to civil courts.

In 2008,the number of labour cases in courts was 280,000,a 94 per cent increase over the previous year,according to the Supreme People’s Court. In the first half of 2009,there were 170,000 such cases.

“Publicity regarding the Labour Contract Law had a tremendous impact on raising worker consciousness,” said Aaron Halegua,a lawyer based in New York who is a consultant on Chinese labour law. “Far more workers came to realise that they have rights and there are laws protecting them.”

Western experts say if Chinese leaders were to allow independent unions,that could help defuse labour discontent. Under the current system,only the government-run union,the All-China Federation of Trade Unions,which has more than 170 million members,is permitted. The union only nominally represents workers; in practice,it has close ties with management.

The union has a wide presence in state-owned companies and has made a big push to establish branches in foreign companies—its most notable victory was unionising Wal-Mart stores in 2006.

A common complaint among labourers is lack of overtime pay when a work schedule exceeds 40 hours.

At the Gloria Plaza Hotel in Beijing,workers took their dispute with management to the streets on May 27. The company that owns the hotel plans to tear it down and lay off the workers. “They are a state-owned enterprise,they have the money,but they don’t care about us at all,” said one woman who declined to be named for fear of retribution.

Xiyun Yang contributed reporting from Beijing,and David Barboza from Zhongshan,China. Li Bibo and Helen Gao contributed research.