Chinese Government Tells Multinationals To Allow
Trade Unions
The Chinese government has told foreign firms investing
in China to allow the organization of trade unions. The
move is an about-face from previous Chinese government
policy, and signals that the government is more concerned
about workers' rights following outbreaks of worker violence
in some Chinese provinces.
All major investors such as Dell, WalMart and other multinationals
will be affected. WalMart has a worldwide non-union policy,
and it is likely that they will oppose the move. However,
it is unlikely that they will sway the Chinese government
if it is committed to this move. Fighting the move publicly
would be unwise, as it would invite much unwelcome publicity.
All unions in China work under the umbrella of the All-China
Federation of Trade Unions (ACFTU). The ACFTU is under
the direct control of the Chinese Communist Party, and
is widely considered to be a weak organization. It does
not organize or sanction strikes. Membership in the ACFTU
has fallen as workers have become more mobile, and found
jobs on their own.
Recently, there have been riots among dissatisfied workers
who have not been paid by their employees, or who have
suffered other abuse in the workplace. Although these
events are not covered in the press, word spreads quickly
through the Internet and texting on mobile phones. President
Hu Jintao and Premier Wen Jiabao have been trying to curry
a favorable image among working people, who often felt
largely ignored by their predecessor Jiang Zemin.
Under the terms of WTO accession, China will have to
open its markets more to foreign products and services.
These moves are likely to displace some Chinese workers,
since they are not competitive in all sectors. Union membership
would provide a support mechanism for many workers who
may become unemployed.
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