Executive summary

This study examines the Global Labor Rights, changes to and relations between labor policies and protection of workers in context of China’s market transition. With a focus on statutory laws, the labor act of 1994 and the trade union act of 1992, the paper clarifies how different acts are responsible to ensure non-exploitation of Chinese workers. Pointing out as far as 1980, the paper clarifies as to why some administration policies existed in China without mutual representation as part of the law. Besides, it discloses why the state is relaxed in controlling labor mobility and job allocation most especially for international companies. Ultimately, the paper points out on the paradigmatic shifts of China ’s labor policy that has been mainly enhanced by several challenges including the bigger number of unemployed Chinese population and laxity by independent trade union to serve its function of protecting the right of workers.

Introduction

The production of goods is linked to every employer because of where they are utilized or how they are financed. While analyzing labor standard in the republic of China, companies that provide safe working conditions and safety labor laws have been identified (Brown, 2010). Besides, conclusions have been drawn that market failures have complicated issues to countries such as China leading to underdevelopment of labor standards as well as the growth of wages (Ngok, 2008). Moreover, it stimulates interaction and the development process hence creating avenues for more outgrowths in the industrial sector. Regardless of laxity in labor laws, China’s entrance to world trade organizations has brought different reactions with investment fever being elicited by attracting different foreign investments. Of late, China has received a recommendable record as a country that has gone far much beyond others in terms of investment destination. With foreign trade investment hitting a track record of $ 600 billion, a more upward trend is expected in the near future, but issues of labor has remained to be of less consideration (Ngok, 2008).

Current Status of Labor Laws in China

According to Brown (2010), China being a socialist republic, the country is controlled through planned economy and socialist’s style of labor management system. However, the country is making several amendments on to its labor laws so as to make it compatible with the rest of the other countries. From the usual norm, most countries across the world including the United States have opted to invest their production into China because of the cheap cost labor and less strict policies governing the workforce so as to maximize their return on investments (Brown, 2010). The situation has been enhanced due to the fact that China has abundant supply of labor force with majority of the population willing to do extra work with very minimal payments. Currently, several things have changed with the Chinese government adopting different types of labor laws some of which includes statutory laws, administrative laws and international laws among others (Brown, 2010).

Statutory Law

Chen & Hamori (2014), argues that Statutory laws are special types of laws enacted by the national people’s congress of China (NPC) and streamlined under various ministries including the labor ministry to protect the rights of industrial workers. A number of statutory laws regarding the protection of workers’ rights have since been implemented such as;

The Labor Act Of 1994

The labor act of 1994 is believed to be the first labor law act to have been enacted by the Chinese government. Such a law offers protection to Chinese citizens including citizens of other states who are employed under companies registered in China (Chen & Hamori, 2014). As stipulated by the constitution of China, the labor act of 1994 clarifies about the minimum wage, employment of the minors, the duration of working and ways of doing inspection among other protection of workers. However, with the looming shortage of blue collar jobs in China, the act has not been fully explored. In addition, poor management of China’s factories abundant workforce has lifted a big factor subjecting workers to low wages with no alternative solutions. Regardless of the existence of the laws in China, most workers are completely unaware about such existence while those who aware are not willing to push for further pavements due to fear of missing similar opportunities in future (Chen & Hamori, 2014).

The Trade Union Act Of 1992

The act form part of the trade union system that gives the trade union powers to allow for collective bargaining of Chinese workers and settlement of disputes that concerns enterprises and Industrial management. The trade union act of 1992 has led to the establishment of the largest labor networks in China with global links where all employees are expected to make contributions for union management and settling for workers disputes. According to the above act, every company is mandated to have a single union for employees and all such unions must be registered by the federal trade union of China (FTUC).

China’s Administrative Laws

As part of employing control to labor force of all citizens working in the republic of China, the state has enacted administrative laws to fill up the deficit left by statutory laws towards the realization of better administration of workers (Bao., Lin & Zhao, 2012). In the past, some administration policies existed in China without mutual representation of the law. However, the concept is slowly changing with most policies especially the ones regarding labor function being amended. In essence, the labor administrative act in China states that no employee should be forcefully made to work for more than 40 hours per week. While most of the China’s statutory laws are of more benefits to international investors, they are similarly of greater advantage to female employees (Bao., Lin & Zhao, 2012).

International Labor Laws Conventions

Besides its increased investments to different countries across the world, a lot of pressure has been subjected to China leading to its joining of the world trade organization (WTO) (Potter, 2014). This has been mainly done to facilitate compliancy to the international labor standards. Through collective bargaining and freedom from forced labor, China through the international labor conventions works towards the development of quality opportunities, gender equity, safety and better working environment. Ultimately, the international labor convention has enable workers within the republic of China to have a joint immunity thus protect the right of workers (Potter, 2014).

Employee’s protection and standards of working in China

There is pronounced information that investors in China incur very minimal cost of production compared to unit cost of production in already developed countries such as the United States (Moser, 2010). Majority of Chinese employees have no life assurance policies nor do they receive some of the most vital healthcare benefits as it is done to workers in western countries. However, China being cultural intensive has developed appropriate mechanism allowing workers to respond to national holidays and others being paid almost double the amount when they respond to duties either on weekends or when they are suppose to be off duty (Moser, 2010). Besides, varied social context of labor legislative laws in China has motivated concerns for the government to ensure managerial efficiency of workers and to increase oversight regulatory authority. Such policies have been employed in development zones in manufacturing industries so as to foster institutional capacity and to address labor problems of non state sector.

As part of concerns to ensure protection for female employees, women have been accorded equal rights to men counterparts thus enhancing their participation rate to almost 50%, which is substantially higher as compared to most of developing countries across the world. As a matter of fact, Chinese women have been allowed to own a bigger percentage of their husband’s earnings compared to already developed countries in both Europe and the United States that amounts to less than 68% of the men’s total earnings (Moser, 2010). Never the less, not all China ’s labor policies are perceived better than other nations, but some of them are more similar to what is executed in other states. For instance, the international labor laws regarding employment of minors has been universally set at the age of 14 for the third world countries and 15 years for the developed countries. However, China, the United States and most countries in the European region have set the age limit at 16. Ultimately, both countries employ political authority to spearhead the enactment of labor laws with projections to control provision of labor while ensuring protection of workers through single unions (Moser, 2010).

Challenges associated with the implementation of labor laws in China

As good as they seem in the constitutional handbook, a lot of complains have been raised globally that China’s labor laws are not getting followed to the later. First, the government is quite reluctant to impose such laws for non state investors due to fear of economic imbalance that may be created by international countries (Men & Balducci, 2010). Secondly, the independent trade union that has been mandated by the government never serves its role purposely to protect the right of workers. Moreover, a lot of transformation is currently taking place within the Chinese government which has led to greater level of inability to enforce the labor laws. Therefore, it is so obvious that China has continued to have a severe persistence of labor injustice that is perceived to have been enhanced by the bigger number of unemployed population. On the other hand various interstates cultural differences have also made it impossible implement some of the laws (Men & Balducci, 2010).

Conclusion

The emotional people congress which is the legal body in China mandated to enact laws governing the citizens has done its very best while some of these laws are not getting implemented fully. This paper has pointed out several reasons for China received a recommendable record as a country that has gone far much beyond countries such as the United States in terms of investment and workers protection. Citing statutory laws, the labor act of 1994 and the trade union act of 1992 among others, the paper has clarified why China enhances collective bargaining and freedom from forced labor through international labor conventions. Ultimately, Chinese government also works towards the development of quality opportunities, gender equity, safety and working environment for workers across the entire nation.

References:

Bao, S., Lin, S., & Zhao, C. (2012). The Chinese economy after WTO accession. Aldershot,     England: Ashgate.

Brown, R. C. (2010). Understanding labor and employment law in China. Cambridge:             Cambridge University Press.

Chen, G., & Hamori, S. (2014). Rural Labor Migration, Discrimination, and the New Dual     Labor Market in China. Berlin, Heidelberg: Imprint: Springer.

Men, J., & Balducci, G. (2010). Prospects and challenges for EU-China relations in the 21st         century: The partnership and cooperation agreement. Bruxelles: P.I.E. Peter Lang.

Moser, M. J. (2010). Doing business in China. Huntington, NY: Juris.

Ngok, K. (2008). The changes of Chinese labor policy and labor legislation in the context of     market transition. International Labor and Working Class History, 73(01), 45-64.

Potter, P. B. (2014). Assessing treaty performance in China: Trade and human rights.

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