China has proposed a new labour law that would crack down on sweatshops
and protect workers’ rights by allowing state-owned unions a bigger say
on workplace standards.
The new law, now at the drafting stage, would enable the unions to
negotiate workers’ contracts, give them collective bargaining power,
the right to pursue employees’ grievances and to be consulted on work
and safety rules. It would also make dismissing an employee for poor
performance more difficult.
The proposal comes after decades in which the unions have had little
power in the workplace, but it has thrown the government into conflict
with American and other foreign companies that moved into China for its
many advantages, including low-cost labour. Some corporations have
lobbied against the proposed law and have hinted they may build fewer
factories in the country if it is enacted. However, they may have to
face the reality that energy, land and labour costs are rising with
China’s increased prosperity.
Tim Costello, an official of Global Labour Strategies, a body that
supports employee rights policies, and a long-time union advocate, said
of the objections: ‘You have big corporations opposing basically modest
reforms. This flies in the face of the idea that globalization and
corporations will raise standards around the world.’
Migrant workers particularly would benefit from the proposed law, he
said. Most of them are exiles from the poorest provinces and travel far
from home to live in cramped company dormitories while working long
hours under poor conditions. They complain about abuses such as having
their pay withheld or being forced to work without a contract.
The new legislation could come into effect as early as next May.
