Reform for the benefit of workers
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Events often trigger reforms. Recent labor strikes in China at Honda and Foxconn may present one of those events that provide an opportunity for reflection on China's labor laws and labor relations. Today the labor front seems quiet, after Foxconn and Honda workers' wages were raised following negotiations with their employers and, in the case of Honda, with government officials.
I participated in a labor law conference in China recently discussing and exploring legal and labor relations issues, particularly those exposed by the recent strikes at Honda and Foxconn. Despite a spate of new labor laws, many of these Chinese academics and officials argued the legal system regulating labor relations wasn't working as it should and they knew why.
Although labor laws are in place, the economy is performing and the employers are profiting, workers are "short-changed" because enforcement of existing laws, union advocacy, and collective negotiations are not reliable or used effectively. Thus, workers have resorted to strikes.
Reportedly, more than 60,000 mass protests occur in China every year, many of which are labor disputes. Why? In the last three years, China has implemented significant labor reforms and laws that have greatly benefited workers.
It appears the All-China Federation of Trade Unions (ACFTU) is unable or unwilling to reform itself to better represent workers' rights and interests in the absence of a clear political decision by higher authorities to do so. Though I believe there has been measurable improvement in the ACFTU's representation of workers, it tends to be regional and inconsistent.
Deng Xiaoping led the country to economic success by adhering to the theory of "economic reform first, political reform second". Because of China's economic success, it is clear to many that if labor laws are to be improved the time for political reform is now.
The time has come to start the process of completing the promise of Deng. Most at the conference believed the ACFTU cannot reform itself. In fact, it needs to become a true social organization or else China should expect many more "Honda-style strikes". The repercussions for China will be economic and political.
The key to political reform in labor laws and labor relations is to allow the ACFTU to more freely represent and secure the interests of the workers in contractual and statutory protections and benefits. Perhaps a clarification and adjustment of primary functions would be in order. Let the governments look after the overall welfare of its citizens through political policies at the macro-level, the employers look after economic advancement, the ACFTU look after the interests of the workers, and the administration protect society through good management and regulation of the dynamics of those functions.
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