2010 Annual Survey of violations of trade union rights – China

Population: 1,340,000,000
Capital: Beijing
ILO Core Conventions Ratified: 100 – 138 – 182

2009 saw a huge increase in the number of labour disputes and collective actions in China. Massive rioting in the Xinjiang Uighur Autonomous region sparked in part by a factory protest ended with executions for the alleged ringleaders, mainly ethnic Uighurs. Government bodies, including the official Chinese trade unions blamed overseas ‘hostile forces’ for industrial and social unrest. Despite new labour legislation workers are still banned from organising independently and can be detained and imprisoned for their involvement in collective protest actions.

Trade union rights in law

Despite recent improvements, Chinese labour laws still fall short of international standards. First and foremost, there is no real freedom of association as only one “workers” organisation is recognised in law, the All China Federation of Trade Unions (ACFTU). The establishment of any trade union shall be submitted to the union organisation at the next higher level for approval, and the latter shall “exercise leadership” over those at the lower level. The law also empowers the ACFTU to exercise financial control over all its constituents. Furthermore, the legal procedures for registering a union office in an enterprise can be completed without trade union officials even entering the workplace, and branches can be set up in some enterprises simply by carrying out administrative procedures.

There are no thorough national level regulations on collective bargaining procedures, but only on collective contracts. However, a collective contract established in line with the regulations is legally binding. There have also been considerable efforts to set up a dispute resolution system in the last decade.

The right to strike was removed from the Constitution in 1982, and the revised Trade Union law does not use the term “strike” (bagong) but instead refers to instances of “work stoppages” (tinggong) and “go-slows” (daigong).

Trade union rights in practice and violations in 2009

Background: The authorities have responded to the crisis with restrictions on lay-offs, penalties for non-compensation, tax breaks and other incentives for companies to hire and retain workers, while the ACFTU was focusing its efforts on retraining and recruitment of members in the rural areas and the provision of train tickets for migrants forced to return home. By the start of 2009, some 30 million migrant workers had reportedly returned to their home provinces while sources state the number of laid off as a result of the economic crisis to be as high as 40 million. Health and Safety on the ground remains a matter of serious concern for workers and the authorities alike. Legislation is routinely ignored and accidents covered up. Workers have little chance of obtaining adequate compensation without lengthy court cases. Work safety conditions in China have improved as of late but mine disasters continue to kill thousands of people each year. Knowledge of and action against exposure to toxic chemicals at work is growing but activists are regularly harassed.

Official statistics for labour disputes showed a significant increase. In some eastern and southern regions, the number of labour disputes in the first quarter of 2009 rose by around 42 % in Guangdong and almost 160% in Zhejiang. The main causes are increasingly issues related to contracts, wage arrears, missing benefits and unpaid overtime.

Role of the official Chinese trade union (All China Federation of Trade Union – ACFTU) and new developments: The ACFTU actively calls on employers to follow the 2008 labour law, while at the same time urging workers to secure a better knowledge of the law. The ACFTU’s role and the supervision of higher level branches over lower level branches has been strengthened in new legislation, especially in resolving labour issues and in keeping with the nationwide emphasis on the development of a “harmonious society” and a “harmonious workplace”.

The ACFTU played a significant role in the drafting of the new Labour Contract Law (LCL) and in implementing regulations and also made several high profile statements calling on unions and authorities to safeguard workers’ interests in the wake of the economic crisis. In addition, the ACFTU continued to focus its efforts on organising branches in private companies Asian multinationals.

Attempts to establish independent trade unions repressed: No independent trade unions are allowed. Organisers of workers’ groups or protests are often arrested. Some are sentenced to terms of imprisonment (officially called “reform through labour”, or “lao gai”) after criminal trials which fall well short of international standards. Others can be assigned to terms of “re-education through labour”, an administrative process which bypasses the few safeguards of the criminal justice system. The fear of detention also makes negotiations between workers’ representatives and the authorities and employers extremely difficult. The continued use and abuse of extensive state secrets legislation including laws classifying labour related statistics as state secrets means that activists can and are sometimes charged with ‘disclosing state secrets’ for their work.

However it is worth noting that there are increasing numbers of grassroots enterprise unions either formed by the workers themselves or prompted by official ‘organising’ campaigns that have evolved into something approaching a trade union.

Trade union elections: Although the Trade Union Law states that trade union officers at each level should be elected, this is often ignored and most officials are appointed. In addition, elected candidates are subject to approval by the provincial-level ACFTU committees. Many provinces have developed, or are in the process of developing, regulations concerning the obligation to hold trade union elections as stipulated in the Trade Union Law.

Increasing strikes going together with increasing violence and criminal charges against protesting workers: The number of strikes (both spontaneous and planned, but without the official recognition of the union) has continued to increase, especially among private enterprise workers. Privatisation and the ensuing corruption and redundancy it engenders, continue to be a major cause of labour unrest for state owned enterprise workers. Figures suggest that each day around 1,000 workers are involved in industrial action in Guangdong Province alone. The increasingly commonplace nature of strikes has meant that despite the ambiguity of their legal position, some local authorities have been less hostile towards strikes and more strikes appear to be successful. For example, workers at the Alcoa (Shanghai) Aluminium Products Co Ltd, an aluminium plant, held a strike in August after they discovered that their company had been taken over by the state owned Yunnan Metallurgical Group Co Ltd. (YMGCL), without them being informed or having their pay and conditions guaranteed. Finally an agreement was reached.

Furthermore, while the Labour Law, Trade Union Law and Occupational Safety and Health Law make mention of “work-stoppages”, workers are likely to face a host of problems. They are usually picked up by the police and warned about public order offences, traffic violations, breaking the law on parades and demonstrations, or much more serious political charges. Strike organisers and independent labour activists also face the threat of re-education through labour. Though in principle limited to three years, in practice these periods of forced labour can be extended at the authorities’ will.

Although collective actions are not handled or treated in similar ways depending on the local mix of political forces, local governments and company employers often turn to violent repression of worker industrial actions and protests with the large-scale deployment of armed police and riot police as well as ordinary public security forces. In some instances, companies hired men to beat and threaten workers protesting missing wages or taking other forms of industrial action, often with deadly results.

Support for workers’ grievances including those of migrant workers: The All China Federation of Trade Union (ACFTU) is not involved in the majority of disputes and collective actions in the major manufacturing zones where most private business is located. On the other hand, it remains high profile in efforts to claim back missing wages for migrant workers, which are a major source of discontent as well as pushing for wage increases and philanthropic work.

Though migrant workers know the existence of trade unions in their enterprises, few of them would seek assistance from the trade union in cases of rights abuse. This visible lack of assistance is one of the most crucial factors in the rise of civil society labour groups providing legal and other services for migrant workers. Some lower level ACFTU branches now offer legal aid services while continuing to avoid engagement in workers’ collective disputes at the plant level.

Chinese workers overseas: Reports continue of poor working conditions, including the denial of basic trade union rights and freedom of association in Chinese owned enterprises, including major state owned companies. This is of particular concern in the extractive industry and large construction projects in countries such as in Africa. Chinese workers who complain of poor conditions have faced negative repercussions on their return to China.

Increasing use of subcontracted short term labour: In August, a student part-time worker at a Coca-Cola’s bottling plant in Zhejiang was beaten after asking for wage arrears. The student was employed by a labour contract agency and Coca-Cola therefore attempted to deny responsibility for the incident. A Hong Kong labour group reported that almost 50% of workers at the factory were employed by agencies but many worked full time contrary to new laws governing the use of contract labour. The use of subcontracted short term labour is growing.

Shaanxi enterprises union rights’ defence congress’: Over 380 workers from some 20 enterprises in Shaanxi province applied to the provincial Party committee and regional trade union federation to set up a group called the Shaanxi Enterprise Union Rights Defence Representative Congress which would act as a form of centralised workers’ congress overseeing enterprise level worker congresses, unions and enterprises. The aim was to uncover problems and unlawful activity and enable workers to seek collective justice. The organisers stressed that they would not seek to petition or hold protests but instead to organise effective unions for the workers. The organiser received no official response from the authorities but Hong Kong media reported that some of the organisers were threatened by officials who claimed the proposed group was a “reactionary organization,” linked to foreign hostile forces.

Teachers strike unreported and censored: On 4 March, in Yunfu, Guangdong province, around 700 teachers protested over low wages. The protest came after the local authorities decided to increase the salaries of its employees by 1,000 a month while giving no raise to teachers meaning that the average salary of a government worker would be around three times that of a local teacher. The protest was reported on the internet but later all pictures and reports of the unrest were deleted by censors.

Casio workers beaten by police during strike: On 6 March, according to an outspoken domestic newspaper, over 4,000 workers from the Casio factory in Fanyu in Guangzhou went on strike over wages. Their protest was met with anti-riot police and public security personnel to return workers to the factory; 20 workers were injured in the process.

Trade unionist sacked from ACFTU hotel for union work: In April, Liu Yongyi, the chairwoman of the Guangdong Union Hotel Union (belonging to the Guangdong Province Federation of Trade Unions Industries Company) was sacked, according to management for professional reasons and because she caused ‘trouble’. For most workers, she was sacked for her attempts at protecting worker’ rights. Two other union committee members were dismissed after they had helped workers gain overtime payments. Unlike most other union heads, at the hotel the union chairs and vice chairs were reportedly elected by the workers in a ballot. Under Chinese law, union chairs and vice chairs are protected from unfair sacking by various clauses governing the dismissal process.

Coal miners threatened with arrest: In late August, early September over 5,000 workers from the Hunan Coal Industry Group went on strike over privatisation claiming they had been forced to sign compensation agreements about which they had not been consulted. The authorities reportedly declared the strike illegal and threatened the workers with detention and arrest if they did not return to work immediately.

Striking workers beaten in Shenzhen: On 1 September, around 1,000 workers from the Shenzhen Philips Respironics factory went on strike complaining that the factory unilaterally initiated a new work policy whereby workers would lose half an hour of overtime pay, but still be required to complete the same daily workload. Other issues included poor food and accommodation as well as increased work for the same pay. Management reportedly retaliated by firing three supervisors that day and recording the names of those striking. The following day, the protest was met by large numbers of armed police and in the ensuring clash at least two female workers were injured.

Worker representative detained and assigned to term of administrative detention: On 9 September, Ren Fengyu, a representative of retired workers from the Tonghua Steel group, was reportedly sentenced to 18 months re-education trough labour after putting up a poster calling for the legalisation of a Tonghua workers’ rights organisation and the formal election of its representatives. He was charged with “assembling a crowd to create a disturbance”. Ren had been campaigning for the rights of laid-off workers since 2005 and had nearly 100 supporters.

The arrest and sentencing of Ren was believed by most to be part of a punishment directed at the Tonghua workers in general for the riots and the death of a rival steel company executive Chen Guojin during a protest over the planned privatisation of Tonghua Steel. It led to a clash between some 30,000 workers and police. Chen Guojin was negotiating the takeover of Tongua which would have led to massive layoffs and little compensation.

Scores detained for alleged rioting and violence during taxi strikes: In October, a billionaire legislator went on trial with 27 associates and three high ranking transport and petition officials from Chongqing municipality over allegations of being the masterminds of the taxi strike in Chongqing. It was alleged that Li Qiang, an ex-deputy to the Chongqing Municipal People’s Congress ordered drivers in his taxi company to go on strike and also sent dozens of gangsters into the streets to smash working taxis and beat their drivers, triggering similar protests in cities all over China. Observers state that the trial is punishment from the local government for the businessman supporting the strike.

New cases of forced labour: Forced labour continued to be met with impunity as 2009 saw several new cases of forced labour. Two brothers accused of keeping beggars and vagrants locked up as slaves in their kilns received only an 18 month sentence despite the death of one elderly worker from exhaustion.

Imprisonment of labour activists: Independent labour activists and leaders were jailed in 2009 joining those arrested in previous years and who remained in prison and in re-education through labour camps. The ITUC Hong Kong Office (IHLO) keeps a list of detained labour activists.

Workers at Gold Peak strike: On 8 December, around 1,000 workers at factories owned and operated by the Hong Kong based Gold Peak Battery group organised a two day strike at the Power pack plant in south China in a continuation of the long struggle for proper compensation and protection against cadmium poisoning. Three workers were reportedly locked up by security guards while other workers blocked the factory gates. In the aftermath of the protest, on 22 December, four workers were questioned by police over their role in the strike including Wang Fengping. Wang was released after 10 hours while the other three were kept in detention for almost 2 weeks. Wang Fenping was then fired.

Hundreds of workers involved in the manufacturing of cadmium batteries have been diagnosed with cadmium poisoning or excessive cadmium levels. Gold peak management has not reached a satisfactory agreement over compensation, treatment, prevention and support.

source: http://www.unhcr.org/refworld/country,,ITUC,,CHN,,4c4fec852d,0.html

2009 Annual Survey of violations of trade union rights – China

Population: 1,308,873,000
Capital: Beijing
ILO Core Conventions Ratified: 100 – 111 – 138 – 182

2008 was an important year for China, in which several significant pieces of legislation came into force including on collective consultation and wage negotiation. However, the Trade Union Law still bans workers from organising independently and workers still found themselves detained or arrested, charged and imprisoned for their involvement in collective protest action during the year. Forced labour and trafficking of children was again in the media.

Trade union rights in law

No freedom of association: China’s Trade Union Law was adopted in 1950, amended in 1992 and again in October 2001. Workers are not free to form or join the trade unions of their choice. Only one “workers'” organisation is recognised in law, the All China Federation of Trade Unions (ACFTU).

Trade union monopoly: According to the Trade Union Law , the establishment of any trade union organisation, whether local, national or industrial, “shall be submitted to the trade union organisation at the next higher level for approval”. Trade union organisations at a higher level “shall exercise leadership” over those at lower level. The law also empowers the ACFTU to exercise financial control over all its constituents. The new Labour Contract Law (LCL), effective as of 1 January 2008, along with several regional directives further facilitate the control of higher level ACFTU branches and officials over grassroots unions and worker representatives not yet in a union.

Legal procedures for registering a union office in an enterprise can be completed without trade union officials even entering the workplace, and branches can be set up in some enterprises simply by carrying out administrative procedures.

Under the Trade Union Law, “a basic-level trade union committee shall be set up in an enterprise, an institution or a government department with a membership of 25 or more. Where the membership is less than 25, a basic-level trade union committee may be separately set up, or a basic-level trade union committee may be set up jointly by the members in two or more work units, or an organiser may be elected, to organise the members in various activities.” This leaves it up to the workers to establish a union, does not require all units automatically to establish a union, but does require companies to allow for a union to be established once workers request it.

Collective bargaining: There is currently no national law specifically governing collective bargaining procedures but only regulations on collective contracts. However, a collective contract established in line with the regulations is legally binding. The 1992 Trade Union Law first authorised unions at the enterprise level to conclude collective contracts and the Labour Law (effective 1995) developed the system by adopting collective consultation as a key mechanism for settling disputes between employers and workers. Article 33 of the Labour Law states that workers have the right to conclude a collective contract “in an enterprise where the trade union has not yet been set up”. The amended Trade Union Law of 2001 again strengthened the union’s mandate in collective wage negotiations as do regulations issued in 2000 and 2001.

Workers are often offered no formal contract at all, especially migrants in export processing zones (EPZs). If they do sign a contract, they are rarely given a copy.

Developments at the provincial level: Provincial regulations issued in 2008 may however help develop more detailed contracts and a more genuine form of negotiation process. Several cities and provinces issued regulations which deal either with the implementation of existing labour legislation or give more details on collective contract procedures and contents.

The Shanghai Collective Contract Rules (the “Shanghai Rules”), adopted in August 2007 and into effect in January 2008 govern three major areas: collective bargaining, collective contracts and related dispute resolution. They state that collective bargaining shall accomplish the formulation, amendment or adoption of company policies, rules or major decisions directly affecting the following employee interests: salary and wage; working time; leave and holidays; occupational safety and hygiene; social insurance and benefits; employee training; labour discipline; production quotas; and other matters as required by law. They also set guidelines for regional or industry-specific union organisations to engage in collective bargaining with companies in construction or food-service businesses for the conclusion of regional or industry-specific collective contracts. They also call for the establishment of a tripartite system for the coordination and resolution of employment relationships and labour disputes; and give the upper-level unions the discretionary power to oversee the collective bargaining activities of companies and the right to intervene in a dispute or to bring a lawsuit.

On 1 January 2008, Hebei province implemented new Regulations on Enterprise Collective Consultations which state that the consultation process should give equal weight to the interests of the enterprise and the workers. The regulations explicitly state that where there is no trade union in the enterprise, the workers’ representatives in the negotiations should be “democratically elected by a majority of employees.” Where there is a union, representatives should be recommended by the union, and scrutinised by the workers’ congress.

In November 2008, authorities in Shenzhen issued regulations on the Promotion of Harmonious Labour Relations. These only cover the Shenzhen Special Economic Zone, however, and not the neighbouring areas where the majority of factories are based. They promote the conclusion of collective contracts on issues such as wages, working hours or restructuring.

New Labour Contract Law (LCL): In June 2007, the new Labour Contract Law was adopted with effect from 1 January 2008. Implementing regulations were adopted in autumn 2008. The new LCL addresses some of the crucial failings of the current labour law and provides specific penalties and remedies for failing to observe labour laws and regulations. It seeks to determine and clarify the nature of the employment relationship between workers and employers and stipulates aspects which must appear in a labour contract, such as the contract’s duration, the job description, hours of work and rest, remuneration, social insurance and labour protection. The new law also contains special rules relating to collective contracts, “dispatched” and part-time workers. Contracted dispatched workers have the same rights as regular employees and are also eligible for ACFTU membership at either the hiring company or the dispatching company. The law also includes penalties for companies which fail to provide proper written contracts, and penalties for breaking contract terms. The law also appears to bolster the role of trade unions in discussions on redundancies and other major changes; and it is clear that individual contracts should not be used to undercut the levels of remuneration and working conditions established under collective contracts.

The new LCL and the public debate leading up to its implementation provided an opportunity for the creation of a greater awareness of workers’ rights contained within the legislation. The implementing regulations which were supposed to come out a few months before the law came into force were only issued in the autumn of 2008.

Right to strike not protected under the law: The right to strike was removed from China’s Constitution in 1982, on the grounds that the political system in place had “eradicated problems between the proletariat and enterprise owners”. Despite expectations that the revised Trade Union Law would include the right to strike, it skirts around the issue. Article 27 does not employ the term “strike” (bagong), but instead refers to instances of “work-stoppage” (tinggong) and “go-slows” (daigong). In 2008, there were some official comments on the need for clarity on the issue.

Internal “migrant workers”: A new law on Employment Promotion came into force on 1 January 2008 along with supporting regulations (the regulations on Employment Services and Employment Management). For the first time, the law states that “migrant” workers from rural areas should have the same rights to employment as their urban counterparts. In addition, those who have been resident in a city for more than six months will be entitled to unemployment benefits and services from the local government.

Health and safety – stoppages allowed: The 2003 Work Safety Law, state that workers who encounter a situation at work that directly endangers their personal safety have the right to refuse orders which violate health and safety rules, and the right to stop work and leave the workplace. The Chinese labour law (article 56) contains similar provisions. The Trade Union Law (article 24) is weaker and states that when a trade union finds that workers have been directed to work in unsafe conditions, the union “has the right to put forward proposals for a solution”.

Dispute resolution: In the last decade, the government has made considerable efforts to create a dispute resolution system that involves three stages: mediation, arbitration and the courts. The Labour Law assigns trade unions the roles of chairing enterprise-based “labour dispute mediation committees” and of participating as a member in tripartite “labour dispute arbitration committees” (LDAC), the latter being chaired by the local labour bureau.

A new law on Labour Dispute Arbitration and mediation was passed in December 2007 taking effect in May 2008. The law was designed to provide a “fair and timely” settlement of labour disputes by streamlining existing procedures. It allows an enterprise to establish its own labour mediation committee to solve internal disputes. This committee should include employees and management representatives.

International obligations: In February 2001, the Chinese Government ratified the International Covenant on Economic, Social and Cultural Rights (ICESCR), but announced at the same time that provisions guaranteed under Article 8,1 (a) of the Covenant, namely the right to establish and join workers’ organisations of one’s own choosing, would be dealt with in accordance with Chinese law. In doing so, the government effectively entered a reservation concerning a fundamental element of the Covenant, thereby putting itself in breach of internationally recognised principles on the law of treaties. It did not, however, enter any such reservation concerning Article 8, 1 (d) of the covenant, which guarantees the right to strike.

In April and May 2005, the United Nations Committee on Economic, Social and Cultural Rights, which monitors State parties’ compliance with the ICESCR, examined the first report submitted to it by China following its ratification of the Covenant. In its “Concluding Observations”, the Committee “regretted” China’s “prohibition of the right to organise and join independent trade unions”. It also “urged” China “to amend the Trade Union Act to allow workers to form independent trade unions outside the structure of the All China Federation of Trade Unions.

Trade union rights in practice and violations in 2008

Background: Throughout 2008 there was an increasing number of small- and medium-sized factory bankruptcies and closures, especially in the Pearl River Delta and in the export industry. By December 2008, some 30 million migrant workers had reportedly returned to their home provinces while around 7 – 10 million continue to look for new sources of employment.

Most companies that go bankrupt give no notice to the workers and leave them underpaid or unpaid with little hope of any form of compensation or redundancy payments. Most of the companies reducing staff are doing so with little regard for the Labour Contract Law which details compensation procedures and consultation process before layoffs. For example, Guangdong Provincial authorities stated that between September and October 2008, in Dongguan alone, 117 employers of Hong Kong origin went into hiding owing unpaid wages to some 20,000 workers.

Health and safety at work remains a matter of serious concern for workers and the authorities alike.

Role of the official Chinese trade union (ACFTU) and new developments: The ACFTU actively calls on employers to follow the labour law, while at the same time urging workers to secure a better knowledge of the law. The ACFTU role has been officially strengthened in the new legislation, especially in resolving labour issues and in keeping with the nationwide emphasis on the development of a “harmonious society” and a “harmonious workplace”.

The ACFTU played a significant role in the drafting of the new LCL and in the implementing regulations. It also issued a circular calling on unions and authorities to safeguard workers interests in the spate of lay offs that occurred in the run-up to the implementation of the new LCL in January 2008. However, there has been limited change in practice. While the authorities have responded with restrictions on lay-offs, penalties for non-compensation, tax breaks and other incentives for companies to hire and retain workers, at the end of 2008, the ACFTU was focusing its efforts on retraining and recruitment of members in the rural areas and the provision of train tickets for migrants forced to return home.

In March 2006, China’s President Hu Jintao reportedly ordered the ACFTU to do “a better job of building Party organisations and trade unions in foreign-invested enterprises”. Following this, the target was to unionise over 60% of foreign-invested enterprises by the end of 2006, and this figure was raised to 80% in 2007. At a press conference on 24 December 2008, the ACFTU announced that less than 50% of the Fortune 500 firms had established trade unions, compared to more than 73% for all foreign-funded firms in China. A total of 313 multinationals had set up trade unions, which represented 83% of those based in China. Less focus has been given to Hong Kong- and Taiwan-funded companies.

For several years some companies – most publicly Wal-Mart – have stated that they were not stopping unions from existing but that the workers had not yet expressed the wish to establish one. To counter this argument, in July 2006 ACFTU Chair, Wang Zhaoguo, proposed an amendment to the Trade Union Law that would require foreign enterprises to establish ACFTU-affiliated branches and that the establishment of unions depends on the “will” of the workers. Increasingly it seems that the law is being interpreted as stating that units must establish a union. In July 2006, the first Wal-Mart union was established and by the end of 2008 all Wal-Marts (now over 100) had an ACFTU union. New ACFTU branches have also been established in firms such as Carrefour, McDonalds, Motorola, Kentucky Fried Chicken, Samsung and Nestle.

Support for workers’ grievances including those of migrant workers: The ACFTU is not involved in the majority of disputes and collective actions in the major manufacturing zones where the majority of private business is located. On the other hand, it remains high profile in efforts to claim back missing wages for migrant workers, which are a major source of discontent, as well as pushing for wage increases and unionisation campaigns.

A national survey showed that only 23.5% of the migrant workers interviewed reported the existence of trade unions in their enterprises and also stated that when their legal rights are infringed, only 4.2% would seek assistance from the trade union. This lack of practical and visible assistance is one of the most crucial factors in the rise of labour groups providing legal and health services for migrant workers. Some lower level ACFTU branches are also beginning to offer legal aid services and other support while continuing to avoid engagement in workers’ collective disputes at the plant level. At a national level legal aid is increasingly being promoted alongside re-employment initiatives and retraining.

Trade union elections: Although the Trade Union Law states that trade union officers at each level should be elected, this is often ignored and most officials are appointed. In addition, elected candidates are subject to approval by the provincial-level ACFTU committees. Many provinces have developed, or are in the process of developing, regulations concerning the obligation to hold trade union elections as stipulated in the Trade Union Law.

Attempts to establish independent trade unions repressed: No independent trade unions are allowed. Organisers of workers’ groups or protests are often arrested. Some are sentenced to terms of imprisonment (officially called “reform through labour”, or “lao gai”) after criminal trials which fall well short of international standards. Others can be assigned to terms of “re-education through labour” (“lao jiao”, sometimes called “rehabilitation through labour”), an administrative process which bypasses the few safeguards of the criminal justice system. The fear of detention also makes negotiations between workers’ representatives and the authorities and employers extremely difficult. The continued use and abuse of extensive state secrets legislation including laws classifying labour related statistics as state secrets means that activists can and are sometimes charged with ‘disclosing state secrets’ for their work.

Labour disputes: Nationwide labour dispute arbitration committees accepted 520,000 new cases from January to October 2008, a 50% increase over the same period in 2007. The major causes for disputes and ensuing court cases or collective actions continue to be wage arrears, benefits, and social insurance issues while around 18% arose from conflicts over the termination of labour contracts.

Chinese workers overseas: Reports continue of poor working conditions, including the denial of basic trade union rights and freedom of association in Chinese owned enterprises, including major state owned companies. This is of particular concern in the extractives industry in developing countries.

Violence against protesting workers: The number of strikes (both spontaneous and planned, but always without the official recognition of the union (if there is one) is massive and increasingly strike action is being used by private enterprise workers. Privatisation continues to be a major cause of labour unrest and is plagued by massive corruption. Many workers have been affected by the embezzlement and misappropriation of factory assets and funds set aside for redundancy and other benefits during state-owned enterprises’ (SOE). In March, a strike by 1,500 workers at a wood processing factory in Guangdong was sparked by management’s attempts to force workers to sign blank contracts in order to comply – at least on paper – with the law.

Figures suggest that each day around 1,000 workers are involved in industrial action in Guangdong Province alone. Although collective actions are not handled or treated similarly depending on the local mix of political forces, local governments and company employer often turn to violent repression of worker strikes and protests with the large-scale deployment of armed police and riot police as well as ordinary public security forces. In some instances, companies hired men to beat and threaten workers protesting about missing wages or taking other forms of industrial action, often with deadly results.

In February, Fu’an Textile Company in Dongguan, Guangdong province, reportedly the second-largest Chinese exporter of fabrics in 2004 announced sudden layoffs of nearly 4,000 employees, more than two-thirds of the workforce. This was decided without any statutory consultation process with the ACFTU as required under the Labour Law and detailed again in the Labour Contract Law and without minimum compensation for retrenched workers, based on years of service. The layoffs resulted in some 2,000 workers marching to the local government (a minority shareholder in the company allowing the plant to circumvent labour laws and escape penalties). The demonstration continued on 1 March when police and armed police clashed with workers resulting in injuries and the detention of several workers.

In March, a peaceful protest of around 4,000 workers from the Japanese-invested Casio Electronics Factory was dispersed by around 1,000 armed riot-police and other public security officials. The police action took place when some 3,000 to 4,000 Casio workers protested outside their factory on the 6 March. Some 20 workers, including women workers, were reportedly injured during the clashes. The Casio labour dispute began on 5 March when the company informed workers that the basic wages would be raised in accordance with new regulations. However, workers then discovered that monthly bonuses were cut. Several workers were taken away by police and are believed by other workers to remain in detention.

In October, when Smart Union, a large Toy manufacturer closed down shedding around 7,000 people overnight, workers protested for unpaid wages and compensation outside the local government offices. Riot police and armed police stopped the demonstrators from entering the buildings and the authorities also posted signs that workers faced detention of 10 -15 days of administrative detention if they continued to protest illegal. The government finally agreed to pay around 24 Million Yuan as payment for around two months of unpaid wages for the workers. No compensation was available.

In November 2008, around 500 workers from a leading toy company in the south clashed with police after the company announced the cancellation (without proper compensation) of contracts. Around 1,000 police and security guards were called in to squash a protest and at least five protesters were injured.

Also in south China, in December, workers from a suitcase factory protested over the sudden closure of the factory and the non payment of wages. While the local authorities promised some 60 % of the missing wage workers – mainly rural migrants – demonstrated for the full amount. The armed police were called in and workers accepted the deal after scores were injured. They eventually agreed to take the compensation and return to their home provinces.

Criminal charges against strikers: While the Labour Law, Trade Union Law and Occupational Safety and Health Law make mention of “work-stoppages”, workers are likely to face a host of problems. They are usually picked up by the police and warned about public order offences, traffic violations, breaking the law on parades and demonstrations, or much more serious political charges. Strike organisers and independent labour activists also face the threat of re-education through labour, a form of administrative detention. Though in principle limited to three years, in practice these periods of forced labour can be extended at the authorities’ will.

In the spring of 2008, at least five workers from a shoe factory in Panyu were charged with offences under criminal law relating to unauthorized demonstration and disturbing public order and faced criminal trials and prison sentences of up to seven years.

Trade union recognition: There are increasing numbers of grassroots enterprise unions either formed by the workers themselves or prompted by official ‘organising’ campaigns that have evolved into something approaching a real trade union. In these cases, the provincial ACFTU often collaborates with company management to suppress worker activism in the interests of business.

One example is that of the enterprise union in the Ole Wolff (Yantai) Electronics ltd, a Hong Kong and Danish owned company in Shandong Province. Workers applied to establish a union after 67 women workers were fired in 2006 for complaining to the local labour Department about wage reductions and missing work contracts. The union was formally established but the management refused to acknowledge its existence until workers went on strike for almost 2 weeks in September 2006. Management reportedly led a series of actions and threats against the union, its members and its leaders including firing seven union officials. It also refused contracts to workers who were union members and asked for compensation from striking union members. The union in turn sought help from the local Yantai Labour Department who ordered the reinstatement of union officials. The company however refused the order.

Independent labour activists and leaders have been jailed in 2008 as well as those arrested in previous years and who remained in prison and in re-education through labour camps as of 2008. The ITUC Hong Kong Office keeps a list of the detained labour activists.

source: http://www.unhcr.org/refworld/topic,4565c22541,4565c25f4fd,4c52caf72d,0.html