The Major Issues of Concern in Relation to Modern Employment Relations - Essay Example

Employment Relations xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx China Case Study xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Institution xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecturer xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Abbreviations P.R.C- People Republic of China C.C.P-Chinese Communist Party A.C.F.T.U-All China Federations Trade Union W.T.O – World Trade Organization E.R- Employee Relations E.U-European Union T.U-Trade Union Terminologies Employment relation This is defined as the process of engaging all organs within an organization plus the state in participating in various events. Events can be in term of problem solving, employee relations, decision making, participation and promotion of trade unions. It involves engaging all personnel in improving company performance. State State is defined as a combination of institutions consisting of a legislature, judiciary and executive. It is an institutional system whereby its political supremacy affects daily activities involving employment relations. Trade union This is defined as an association whereby workers join together so as to achieve common goals that involve them. These goals include; better and safe environment, making of decision and problem solving. Collective bargain This is a process involving negotiation between employers and chosen employee representatives most aimed at reaching certain agreements. Introduction China is considered to have a long feudal background. The government of china has constantly centralized all organizational structures through the formation of various dynasties. Chinese people have established a mind set whereby they expect the government to come up with effective ways in which employee relation will be protected. The founding of PRC have constantly strengthen Chinese people mind set on the issue of employee relations. It is argued that china growth of economy may not termed as a success if certain measures in regard to employee relation is not implemented so as to favor more choice oriented system. The old model of employee relation is becoming obsolete and new measures need to be implemented so as new problem that arises from globalization are tackled with (Dickens 2006, p12). It is evident that the china federal system is making a lot of changes within the traditional employee relation system as a measure of installing new principle of state guidance. In china, employee relation s is not the only an economical issue but also a receptive political issue. This essay will discuss the role of state in Chinese system of employee relation, role of employers in Chinese system of employee relations, role of union in Chinese employee relations, issues challenging the system of employee relations in china and the future of employee relations in china. Role of state in Chinese system in employee relations The state involvement is as per the diagram below The labor law which became effective in 1995 was the newest involvement by the state towards adjusting employee relations. This acted as an essential milestone towards the process china labor laws legislations. Since then, Chinese employees have been having greater expectations especially on their rights whereby this have not been the case. The main objective associated to this law was to adjust existing employee relations, to promote development of economy and social progression and labor institutions within socialist markets (Dickens 2006, p32). The labor laws implemented by Chinese state guarantee employee on their right which include; participation in democratic discussions with constant negotiations with business unions as part to defend employee legal rights, workers salary and wages, collective bargains, vocational training and effective labor contracts. It is arguably that at every organization level, workers participation is substantiated by way of implementation employees’ assembly. According to Chinese Employee Assembly Act of 1986, the state has ensured that it is the duties of all organizations to set up constant employees’ assemblies. These assemblies are designed to protect and promote function of trade unions in relation to employee relations. Employee assembly entails support of managerial decisions that are likely to improve employee relation hence positive outcomes. Even as china state tries to ensure that it creates good relation with its employees it is evident that a lot needs to be done. For instance, trade unions are still been considered as an administrative arm of Chinese government. Workers generally do not believe that there rights are been aired by the workers unions (Rubery 2008, p45). The state has introduced politics within workers union such that Chinese employees are no longer interest in joining them. Top workers union management is appointed by the state whereby their positions are constantly interchanged within local government and state owned organizations. This clearly indicate that decisions and order within Chinese trade unions come from the state rather than union members. The correct state involvement should be as one indicated in the diagram below: Roles of employers in Chinese system of employment relation Employers are known to play a big role in the creation of an effective employee relation. It is very essential for employers to get involved in provision of healthy and safe working environments as a vital step toward establishment of good employee relations. In china, the state have been in the forefront of ensuring that proper working condition are been provided to employees across Chinese organizations. In recognition to safer and health working environments, the government have put up employment relations acts so as to encourage mutual relationship between the employer and employee (Smith 2006, p56). The legal attention of Chinese employers is to provide and involve employees in various industrial decisions. In china, employee assemblies have allowed Chinese workers to engage in some affirmative action whereby they shun down managerial action of isolating them from decision making. It is evident that employers should allow their employees to engage in peaceful action. In china many employers have been seen to take secret operation while engaging in decision making processes and openly destroying workers efforts of being heard (Smith 2006, p40). Role of Unions in the Chinese system of employee relations Trade unions carry out their roles by having a full-time representative in every 200 employees or through the unions established at plant level with the aid of ACFTU. The most important role of trade unions is to represent as well as protect the interests of the workers in the various existing organizations in China. China has established new industrialization policies which have led to the birth of numerous industries all across the country. As a result, plenty of labor has been absorbed into these industries and issues of unfair employee relations have in turn increased (Dan 2003, p22). Also, most of these industries are aimed at maximizing profits and in the course of their operations, the may subject their labor force to unfair conditions. Such conditions may include unfair treatment and poor or inadequate working conditions in the workplace. For instance, the employees may be forced to work in poorly ventilated buildings or in environments that expose them to lethal hazards. In this case, trade unions step up and ensure that the health interests of these employees are protected. This is done by assisting individual employees in legal representation in labor arbitration courts to ensure that they are not deprived of any of their legal rights. Another role of trade unions is to enhance the collective negotiation of contracts. This involves the labor force negotiating with the management on matters such as working time, provision of meals, breaks and minimum wages. According to what is agreed between the two parties, a collective contract is signed with the management of the organization as proof and evidence of the negotiation. If other issues arise such as extended working hours during the organization’s peak season, then the appointed representative of the labor force will voice any concerns to the management of behalf of the labor force. Collective bargains and contracts create harmonious and secure labor relations as opposed to strikes and slow-downs that cause economic implications to an organization (Clarke 2004, p12). Resolution of labor or employee disputes is another role played by trade unions. Disputes may arise between individual employees and the management due to discrimination or unfair treatment due to personal reasons. Discontent amidst the labor force may not always be due to the management or the supervisory department. Discontent may also arise due to poor relations among the employees themselves. Such discontent may be due to racial, ethnic or religious differences among them. Trade unions act as mediators in these disputes as the neutral third parties as most organizations may be too busy in its operations to indulge in such minor but important matters (Art. 80-81 Labor Law). Without such mediation, employees may injure each other or even take the life of another due to mere bitterness harbored over time (Fleisher and Yang 2003, p39). Trade unions strongly advocate for proper welfare of employees all across the country. Welfare services include health insurance covers, pension schemes as well as professional training and furtherance of education in the field in which one works in. Employees should have fair welfare treatment such as bonuses, deserved rewards, annual leaves and permission to go on major holidays. Employees should also be given travel and hardship allowances depending on the nature and conditions of the work done. Trade unions also carry out inspections and supervisions in various organizations to ensure that they maintain all the labor requirements in accordance to the Trade Union Act of the People’s Republic of China. Such inspections aloe the trade unions to ensure that employees are not suffering in silence due to unfair treatment, poor working conditions among other forms of suppression. Trade unions also act as instruments that enhance economic growth in the country. The priorities of the government lie in enhancing the economic stability of the country, which requires harmonious and stable employee relations. Trade unions play the vital role of ensuring this stability as they stand in the positions of making sure employee interests are adequately met. With the satisfaction of these interests, coupled with the respect of labor rights and a higher wage, the management of any organization can implement its business decisions successfully. Trade unions generally play the role of acting as a watch-dog ensuring labor laws are implemented and an organ which employees can rely on when subjected to unfair treatment. China’s employment relations appear to be quite different when compared to the employee relations in other countries. Trade unions in china, for example, are considered to play a mere welfare role as they cannot actively negotiate payment details as seen in other countries. They merely bargain their wages through negotiation with the managements of various organizations and some of these negotiations fail to surface in the long run. In other countries, the negotiation of payment details and the payment systems are the main objective of trade unions unlike in China where welfare of employees is held as the major objective (Clarke et al 2004, p40). In China, the state plays a dominating role in the relationship between labor and management. The system of employment relations in China is therefore termed as an employee administration system. In China, the relationship between the state, labor and management is one which is properly balanced with the government acting as a separate neutral third party between management and labor. This is in contrast to many other countries where the state uses its power to govern the employee relations between the management and labor. China however faces market pressure as most of the enterprises in the country have been freed from state ownership while in other countries, enterprises are state-owned. However, China’s may see its administrative system to be more effective due to its geographically large size and diverse culture. The issues that challenge the system of employment relations in China The independence of trade unions in china has been an area of concern in the Chinese employment relations system. The party dominated labor union system has been viewed as the basic mechanism to be utilized in enforcing the rights of workers. The trade unions and SOE directors are not independent from the government and the management-workers’ relations are always founded on the Confucian values through the socio-cultural lens. The trade unions are to offer support for arbitrations of workers and considering of the termination of employer contracts for firms that do not live by the rules aimed at creating a favorable working environment for the workers. In addition, the labor unions ensure the workers are represented in concluding working contracts in accordance with the article 33 of the Chinese labor law (Shih-wei 2005, p.4). Secondly, there is the lack of understanding in relation to the current relations system. The unions are expected to represent workers in labor disputes and in mediation meetings. The employee assembly is a priority for all enterprises as it is vested with the responsibility of representing the employees in decision making and supervision of leadership administration. It however has to follow the ideals of the CP’s basic-level committee. This emphasizes the fact that China’s employment relation system is under due pressure for reforms. The major concern to make this a realized eventuality is the CCP political stability and their influence in the implementation of policies. Proponents of the corporative theory prefer the German system as the best to be implemented to solve the trade unions’ and worker’s issues (Shih-wei 2005, P.16). Thirdly, Chinese mode of collective bargaining is different from the rest of the industrial countries. Industrial disputes have been recorded as the major thorny issue to date. This is because the disagreements are not only limited to individual staff alone but are mainly collective and the numbers are on the rise. In 2003 a total of 515,000 workers were involved in collective disagreements which represented 61.6% of the total population of workers involved in labor disputes. Detailed information on the industrial disputes is illustrated in the tables below (Shih-wei 2005, P. 7). The major issues of concern in relation to collective action included: Workers at retirement age requesting to have their pension amount raised. Mass layoffs by employers that results in the request for the severance fee to be increased. Delay in salary payments or offering low wages and poor working environments. Settling employees in case of an employer being bankrupt. The collective consultations between the trade unions and the workplace are still a challenge despite the reforms that have suggested by the state. The trade unions are expected to represent the workers in the supervision and implementation of labor laws and conventions. Contrary to this, the labor laws no guidelines as to how the trade unions are to be formed and how they should be structured. The labor laws don’t specify how the trade unions should be independent. The effectiveness of the implementation process is also an issue of concern. Workers have the right to join or organize trade unions which should be independent in organizing of their activity (Cooke 2005, P.208). Moreover, of key concern are the safety and the sanitation of the working environment. The child and female workers should also be protected. The minimum employment age is 18 and workers should not offer fewer privileges to young workers. The article 107 is vital as it captures the most of the legal provisions. Other issues that are challenging include the wage as many employers are yet to comply with the minimum wage law. Most child and female workers are poorly paid compared to other elder male counterparts with similar qualifications. The entry of the Chinese government into the WTO worsened up the situation some employers used the opportunity to make cheap products at the expense of the cheap labor costs (Trade Labor Laws). Some trade unions like the ACFTU saw the reviewing of the trade union laws as a step in the reformation on their core functions. However, many analysts saw no willingness in the part of the government relaxing its flex over trade unions like the ACTFU in allowing the legislative reforms to move to the required direction as the law requires trade unions to support the government in safeguarding the socialist state authority. The trade unions are expected to resolve and return working to its normalcy as soon as possible in case of any work stoppages. ACFTU is meant to remain to the parties’ guiding principles and carry out functions of the party. The possibility of organizing and running a parallel labor organization is vague baring the fact that the ACFTU has supreme monopoly and other formed unions shall be subjected to approval by the labor department (Trade Labor Laws). The future of the system of employment relations in China The Chinese working environment is to see better working conditions for employees. The remuneration for many employees is set to improve to be in equal status with their counterparts in other regions. There is much for the formulators and implementers of the labor laws to focus on in relation to offer the best management and business leadership in the world. The achievement of an effective working environment and the country should consider reviewing the employment relations in comparison with other countries as they hold similar experiences and China is a significant player in the universal political economy. The state has to ensure that cheap labor is completely dealt with as it has drastic effects to the rising economy. The employers ought to spent and pay emphasis on high and quality opposed to quality productions (Cooke 2005, p. 210). Conclusion The labor institutions are in constant transition as the state corporatist is losing their grip due to the implementation of new trade unions and policies to safeguard workers and the employers. The need to emphasize on cheap and low quality production against the dynamic and ever changing world that needs demands for quality is a demand to do an overhaul on the existing labor laws and trade union relationships. The state should ensure the plight of the employees is addressed for it to maintain its competitiveness in the global economy. The child employee should be given priority. The working conditions need to be critically evaluated and measures put in place to foresee an effective implementation of the labor laws. Gender equality should also be a requirement and workers privileges should not be based on the sex or age of a person but rather on the effectiveness and the qualifications. References Clarke, S & Li, Q, 2004, Collective Consultation and Industrial relations in china, British journal of industrial relations. 42:2 Cooke, F, 2005, HRM, Work and Employment in China London: Routledge. Dan, F, 2003, Research Report on Wage Determination and Workplace. London: Routledge. David, M & Jianwei, L, 2004, Trade unions in China. Article in summary of ‘Chinese Unions: Nugatory or transforming? An Alice Analysis’ Discussion Paper No. 708 Dickens, L.2006 ‘Fairness – up to a point. 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