Collective Bargaining in China: Guangdong Regulation a Harbinger of National Model?

Abstract

Negotiating collective contracts in China can be viewed as a source of “law-making,” regulating the employment relationship; and, issues are raised regarding enforcement of the process and the resultant contract. China’s collective negotiations have evolved from the iron rice bowl to collective contracts negotiated by processes recently resembling “collective bargaining.” Labor disputes frequently occur during the negotiation process and over collective contracts. The All China Federation of Trade Unions increasingly embraces collective negotiations as it strives to stay relevant. While labor rights are dealt with by legal measures providing mediation and arbitration; processes for resolving disputes involving labor interests are still evolving. While use of the Labor Arbitration Committees is widespread for disputes of labor rights, there is a very underdeveloped regulation for resolving labor interest disputes, notwithstanding since 2004 there are national legal provisions in place that could deal with the negotiation process, impasses, or labor interest disputes. Discussed in this paper are the legal developments of collective bargaining and a summary and critique of the September 25, 2014 Guangdong Province Regulation on Collective Contracts for Enterprises. Observations are made whether it can serve as a model for national legislation.

Keywords: China, collective bargaining, ACFTU

JEL Classification: K