The People's Republic of China, ruled by the Communist Party of China, is the fastest growing major economy. From 2001-2008, China's real GDP grew 10.7 percent, driven largely by exports and infrastructure investments. China's growth, however, has not been without controversy surrounding its labor-management practices. Describe the labor relations system in China and discuss its deficiencies.

Question

What will be an ideal response?

Answer 1

The government of China recognizes just one umbrella labor organization - the All China Federation of Trade Unions (ACFTU). Originally, the ACFTU's function was not to represent workers' interests in opposition to employers' interests as one would expect in a pluralist employment relationship. Instead, it was focused on promoting the common, national good and social harmony through enterprise unions that maintained labor discipline and administered state-sponsored housing and other social benefits programs. Enterprise unions were generally integrated with management and not "representatives" of employees as we would typically think of here in the U.S. Since the late 1980s, China has been transitioning to more of a market-based economy and it has passed several labor laws to promote collective bargaining or "collective consultation." Enforcement of the laws, however, is still weak and labor problems, particularly problems with poor working conditions and wages, persist in China. Because the ACFTU remains the only legally approved union organization and is still closely aligned with the Communist Party of China, it does not provide effective representation to workers in China. This has led to increased grassroots efforts to call attention to China's labor conditions. These efforts include strikes and demonstrations but also an increasing use of media to call attention to the plight of the Chinese worker.