The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Thursday, November 13, 2008

Strategic CSR - Labor Laws in China

The article in the url below charts the improving labor laws in China (Issues: Cultural Conflict, p160; Wages, p204). In spite of a new Labor Contract Law (introduced in January 2008), however, formal protest and workers’ rights are still sensitive issues in China and reform is slow:

“While China's rising number of middle-class malcontents are quick to protest one-off threats to their relatively comfortable existences - such as a nuclear plant or rail project nearby - they are otherwise coddled by government policies. Workers' grievances, by contrast, range from exploitation by employers to administrative discrimination against migrants who have moved to coastal factory towns from poor provinces in the interior. … They also have a lot less to lose than China's professional classes, making any independent labour movement forged outside the official All China Federation of Trade Unions one of the greatest potential threats to the Communist party's grip on power.”

Although union organization is still strongly discouraged by authorities, there is room for organizations (such as Chunfeng, featured in the article) to advise workers on their legal rights:

“Despite the restrictions, Chunfeng has never been busier. "Before this year, we handled about 10 cases a month," says Mr Zhang, who turns 34 this year. "Now it's up to about 30."”

This issue gained increased prominence over the summer with the story that Wal-Mart has finally agreed to collectively-bargained wage rises for all employees at its stores in China.

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther

China's factory workers gain recognition for grievances
By Tom Mitchell in Shenzhen
1110 words
30 July 2008
Financial Times
Asia Ed1
07
http://www.ft.com/cms/s/0/03fc6bc2-5d9f-11dd-8129-000077b07658.html