Government Strengthens Enforcement of Requirements on Injury Insurance

October 3, 2006

The Chinese government will take "compulsory measures" to promote employer participation in on-the-job injury insurance for migrant workers, according to a September 9 article in the China Youth Daily (CYD). By the end of July 2006, 18.71 million migrant workers nationwide were covered by the insurance, according to the article. As of April 2006, 87 million workers overall had such insurance, according to a June 23 Legal Daily article.

The Chinese government will take "compulsory measures" to promote employer participation in on-the-job injury insurance for migrant workers, according to a September 9 article in the China Youth Daily (CYD). By the end of July 2006, 18.71 million migrant workers nationwide were covered by the insurance, according to the article. As of April 2006, 87 million workers overall had such insurance, according to a June 23 Legal Daily article. The government plans to expand coverage to over 140 million people by the year 2010, the articles reported. The CYD article did not detail how the government plans to compel employer participation. A national regulation effective in 2004 mandates that all employers have injury insurance for their employees.

Wang Dexue, Deputy Director of the State Administration of Work Safety (SAWS), said that although the number of workplace accidents between January and August 2006 fell 11.3 percent in comparison to 2005, "no qualitative changes have occurred in terms of work safety in China," according to a Xinhua article posted September 11 on the official Web site of the Chinese government. A total of 433,003 industrial accidents and 70,846 deaths occurred in China between January and August, according to the article. The SAWS and the All-China Federation of Trade Unions have begun a campaign to promote work safety among migrant workers, according to a June 21 article from China Radio International.

State Councilor Hua Jianmin said at a July 2006 State Council meeting that the Chinese government must increase funding to support workplace safety, according to a July 7 article posted on the official Web site of the Chinese government. Hua said that despite lower rates of workplace accidents, flaws persist in the workplace management system. In August, the government announced it would dedicate 467.4 billion yuan (US$58.81 billion) over the next five years to curb workplace accidents, according to an August 30 article from China Daily.

In the July 7 article, Li Yizhong, Director of the SAWS, expressed concern about inadequate criminal penalties for violations of workplace safety. "Compared with punishment in other countries, there is plenty of room for our legislature to revise the Criminal Law and other laws," he said. "We should become determined to use the severest punishment to overawe offenders." Li's comments follow Criminal Law amendments in June 2006 that broadened punishments for work safety violations. The amendments include new penalties for "responsible" personnel who hinder rescue efforts by covering up or failing to report accidents, though the amendments do not clarify how responsibility for reporting such incidents is determined.

For further information regarding workplace safety and health in China, see the CECC 2006 Annual Report, Sec. V(c).