Rise in Collective Disputes Attributed to Weak Protections of Worker Rights

December 1, 2005

About 5,000 workers took part in a mass protest in Shenzhen on November 4, seeking to draw attention to claims of inadequate compensation for their dismissal from state-owned enterprises following restructurings, according to a November 5 Radio Free Asia report. Workers from three separate factories protested, and five detentions resulted.

About 5,000 workers took part in a mass protest in Shenzhen on November 4, seeking to draw attention to claims of inadequate compensation for their dismissal from state-owned enterprises following restructurings, according to a November 5 Radio Free Asia report. Workers from three separate factories protested, and five detentions resulted.

Weak protection of worker rights has led to a sharp rise in collective labor disputes, according to Chinese scholars Qiao Jian and Jiang Ying in an article entitled “An Analysis of Labor Disputes and Mass Incidents During Marketization.” [2005 nian: Zhongguo shehui xingshi fenxi yu yuce], (Beijing: Social Sciences Data Press, 2005), 297-314.] The number of mass labor disputes increased from 1,482 in 1994 to 11,000 in 2003, with 52,637 workers involved in 1994 and some 515,000 in 2003. Participants in all labor disputes rose from 77,794 in 1994 to about 800,000 in 2003. Mass labor incidents, such as strikes, marches, demonstrations, and collective petitions directed at the Chinese xinfang ("letters and visits") system, have increased in recent years. During the first half of 2002, there were 280 mass labor incidents of 100 workers or more, a 53 percent rise on the previous year. In 2003, mass incidents involving currently employed, laid off, or retired workers constituted 46.9 percent all mass incidents, making labor disputes the chief source of mass incidents.

Low wages and unpaid back wages are major causes of labor disputes, according to Qiao and Jiang. During the first half of 2002, about 91 mass incidents involved worker demands for higher wages or unpaid back wages. According to the All-China Federation of Trade Unions, 288.9 billion yuan in unpaid back wages was paid to workers in 2003, while 301.7 billion yuan in new unpaid back wages accumulated during the same period. Salaries for employees in state-owned enterprises have not kept pace with overall economic growth. Annual salaries for migrants in Guangdong have not improved significantly during the last 20 years, and have fallen since 2000.

Qiao and Jiang also identify the lack of retirement insurance and inadequate layoff compensation as major causes of labor disputes. During the first half of 2002, 58 mass incidents involved demands for improved retirement insurance, 32 incidents involved demands for better layoff compensation, and 26 incidents involved demands for better housing after an enterprise closed. Some 47,000 workers were involved in incidents demanding retirement insurance between January and June 2002, 5.2 times the number that participated in similar incidents during the same period in 2001. Worker demands for layoff compensation involved about 45,000 participants, 3.2 times greater than the same period in 2001, and some 20,000 participants were involved in incidents about enterprise reform and better living arrangements, 2.5 times more than during the same period in 2001.

Qiao and Jiang advocate greater protection for worker rights to reduce mass incidents and preserve social stability. Qiao and Jiang argue that government supervisory organs are the most important tool in enforcing labor regulations, but their frequent refusal to hear labor disputes fuel social instability. The authors believe that the creation of independent labor unions would strengthen the ability of workers to negotiate with management. Qiao and Jiang suggest the creation of a special committee of the National People's Congress to enact necessary reforms in labor legislation, including the right to strike.