WORK6018_International Industrial Relations_2010 Semester Su

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

LECTURE ASIAN MARKET ECONOMIES (AMEs): CHINA AND INDIA

Professor Russell Lansbury Work & Organisational Studies

WORK 6018–International Industrial Relations, SUMMER School, 2010

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

PART 1: CHINA

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

The Context of Chinese Industrial Relations (IR) Population over 1.3 billion, 58% of whom are in employment. Uneven rate of economic development between urban and rural areas.

Women have relatively high participation rate: 38% of full-time urban workers. Long-term government policy has promoted low wages and full-time employment. Social security is rudimentary and is confined mainly to urban areas.1

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

The Impact of GFC on China (so far)

In 2008, 20 million jobs were officially lost – mostly by rural migrants. GFC plus product safety concerns resulted in closure of 4,000 toy factories in 2008. Discussion is now focused on the desirability of relaxing recent labour laws in order to reduce pressure on employers. Implications for declining economic growth for rising unemployment, economic hardship and social unrest.

2

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

Chinese Economy“China’s economy is like a fully loaded truck traveling at high speed on a super highway, powered largely by capital investment and strong exports. Imagine how precarious it would be if the truck needs to decelerate quickly because of the economic slowdown, but also has to make a sudden turn from being highly dependent on exports to reliance on domestic consumption … and the consequent unemployment and social instability that may follow”. Dr Ligang Song, Australian National University3

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

Phases of Labour Market Development in China

Post 1949 to late 1970s: highly restricted labour mobility through the hukou system: individuals registered with local authorities. 1980s to early 2000s: gradual easing of restrictions led to mass migration from rural to urban areas. Many employers in SOEs laid-off (27 million between 19982002). Post 2007: re-regulation of the labour market to provide greater employment protection for workers outside the state sector.4

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

Changing Labour Laws and Regulations

Continuing reforms of labour laws since 1980s, including the landmark new labour law of China (1995). Three major employment relations laws took effect from 1 January 2008:1. 2. 3.

Labour contract law Employment promotion law Labour dispute mediation and arbitration law

Main objective of these laws is to achieve a more efficient and equitable labour market.

But enforcement of these laws remains problematic.5

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

China Labour Law Reforms “The new law strengthens protections for workers across its booming economy, rejecting pleas from foreign investors that the measure would reduce China’s appeal as a low-wage, business-friendly industrial base … It will require employers to provide written contracts to their workers, restrict the use of temporary workers and make it harder to lay-off employees … But it will fall short of improving working conditions

unless it is enforced more rigorously than existing laws”.

New York Times, 30th June, 20076

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

Characteristics of the Chinese Labour Laws

The central government provides the broad framework of laws and regulations. Local government devise their own regulations, based on the central government framework, to suit local conditions. Flexibility is required where there is significant economic disparity across regions. But decentralisation of interpretations and enforcement of labour laws means uneven application by local officials and authorities.7

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

Problems of Labour Regulation in China

Limitations on freedom of association e.g. to form independent trade unions. Laws are targeted at the formal employment sector and not at workers in the informal sector. Employers tend to take advantage of regulatory loopholes and seek exceptions. Most labour laws are essentially administrative policy regulations that have limited authority and enforceability.

8

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

The Changing Role of the State

Legacy of state planned economy is embedded in the political and economic system. But decline of state sector employment from 78% (1978) to 23% (2006). Reduced state sector due to privatisation of SOEs, plant closures and down-sizing (Zhu Rongji reform plan of 1997). Encouragement of foreign investment enterprises (FIEs) since mid 1990s. Foreign investors from Taiwan, Hong Kong, Macau have been given greater autonomy including wholly-owned foreign enterprises.9

University of Sydney_WORK6018_International Industrial Relations_2010 Semester Summer

The Role of Employers in China

The China Enterprise Confederation is the sole recognised national employer body but plays a limited role in IR matters. But employers exercise considerable influence e.g. in ‘water …… 此处隐藏：9510字，全部文档内容请下载后查看。喜欢就下载吧 ……