Impact of NGOs on Chinas Labour Rights CSR Component - Essay Example

Impact of NGOs on China’s Labour Rights CSR Component Introduction The increased privatization of labour rights regulation along with the rise of CSR, it was widely assumed, would improve the rights of workers across the global chain of supply. However, scientific research studies show that these trends have had mixed results with regards to workers conditions in the factories (Lin, 2010). This paper will seek to ask how NGOs have influenced the development of labour rights in China. The role of NGOs is growing more important in China given the lack of political independence, as well as freedom of association, for work councils and trade unions on the factory floor. This vacuum is filled partially by labour support and labour rights NGOs, which bargain for labour rights and offer support to work councils at factories and other workplaces. These organizations have more room to manoeuvre since they can bypass political aspects because of their business model, although this can also lead to additional dependencies that hamper their strategies for collective action focused labour rights (Lin, 2010). NGOs, thus, face the delicate task of balancing dependencies between businesses and states and expanding on what current labour laws, both national and international, provide. Their effectiveness against this backdrop will be discussed with regards to labour rights within their larger CSR monitoring mandate. CSR and Labour Rights in China NGOs working in the labour rights and labour support sector in China have several government-recognized frameworks to ensure adherence to CSR, particularly labour rights. One of this is the 2008 Labour Law that was passed in mid-2007 and implemented the next year. In passing the new labour law, the Chinese legislature strengthened worker protection and made a real attempt in adhering to internationally recognized labour regulations (Zheng, 2009). This law required that employees in all Chinese companies give their workers a written contract and restricted use of casual labourers, while also making it more difficult to lay off workers. The law also softened its stance on foreign companies that were a threat to those in China, as well as enhanced the role of the state-owned union in collective bargaining. The law also requires that all employers give equal treatment to immigrant and local employees. In addition, the law also requires that the written contracts offered by employers to workers meet minimum safety and wage regulations (See, 2009). For NGOs in China, most of which are funded by foreign labour rights organizations, this moves the country towards a European-style regime of labour regulations. The 2006 Company Law in China also has provisions for labor rights that fit within the CSR framework. Article 5 of the law requires that all companies will organize production to increase labor productivity, while Article 15 says that the companies should protect the interests and rights recognized under law for their workers (Zheng, 2009). This means that there is increased protection for workers that ensures safety during production. In addition, companies are required to strengthen on-the-job training and professional education of their worker to enhance productivity. Article 55 provides that companies must solicit opinions from staff and labor unions before deciding issues that are of immediate interest to them, while also requiring their presence at relevant meetings. Some of these issues include safety regulations, welfare, salary, and labor insurance and production. In addition, Article 121 holds that solicitation of opinions must be carried out in advance. Finally, Article 195 requires that if a company can use its assets to pay off its debts, the labor insurance premiums and wages of the workers must be a primary priority (Zheng, 2009). These provisions in the Labor Law passed in 2006 have provided for a much improved labor rights regime, which the NGOs will be especially well placed to monitor and report on to improve the wellbeing of workers in China. Another influence on labor rights and CSR in China is the International Labor Organization or ILO. The ILO’s Beijing Regional Office is tasked with the implementation of programs and regulations passed by the ILO in the People’s Republic of China, as well as in Hong Kong, Macau, and Mongolia. The ILO works in close collaboration with employers, workers, the government, and local NGOs in the promotion of labor rights and decent work conditions (Taylor, 2012). This involves the protection of fundamental rights and interests of workers, promoting dialogue between its partners, and implementation of ratified international labor standards. The ILO works with local NGOs to promote better standards of labor and productivity by improving capacity to deliver information and training advise (Hills, 2009), especially for companies willing to implement programs to upgrade labor practices and productivity. The ILO also works with its partners, including NGOs, to respond to HIV/AIDS prevalence in the workplace, especially in fighting stigma and prejudice against positive workers. It has also worked with trade unions and NGOs to respond to HIV/AIDS through education programs and seminars. These are held at local enterprise level in conjunction with NGOs, and in a HIV prevention campaigns sponsored by UK DFID. Finally, the UN also plays a crucial role in CSR promotion, in China, especially in labour rights and labour support. This role was enhanced with the introduction of the UN Global Compact in China, which is part of UNDP and monitors labour rights in China. The UN Global Compact works with NGOs in getting companies to embrace, enact, and support a core set of values related to labour standards and human rights. The UN Global Compact has several principles that companies are meant to comply with NGOs being engaged closely in monitoring various principles. For example, businesses are required to uphold the worker’s freedom of association and recognize collective bargaining rights, which NGOs can sensitize rural workers about (Sabrina, 2013). The institution also works to eliminate compulsory and forced labour, such that companies are expected to provide compensation and wages for labour given freely. UN Global Compact also works with its partners to ensure abolition of child labour that involves using child labour in violation of internationally recognized and ratified child rights. However, child labour is not to be confused with student work or children working in their family households (Shin, 2014). Finally, it also works with local NGOs to monitor and report discrimination in the workplace, for example, based on sex, sexual orientation, trade union membership, age, ethnicity, nationality, or disability. Have NGOs Helped the Chinese to improve its CSR in labour rights? After China initiated political and economic reform in the 70s following the death of President Mao Zedong, there has been a steady increase in the influence and progress of NGOs. These NGOs are referred to as Civilian Organizations by the government and are meant to convey the public’s voice to the government by acting as a non-aligned bridge (Post, 2012). NGOs in China have begun to portend significant influence on the enactment of legislation in China, such as the labour law in 2007. The government has steadily increased its collaboration with strategic NGOs to help in maintaining social stability, as well as increase productivity of its workers and, in turn, improve economic growth. Although trade union and labour laws in China are relatively strong, the main problem arises with regards to local enforcement, which is difficult for the centralized Chinese government to monitor. This has created the need for the communication and monitoring of these laws by NGOs that train workers regarding labour and trade union laws, as well as in negotiations and bargaining. Because the trade union law in China requires that local union elections to be held democratically, NGOs can help workers in ensuring correct choices are made for them to have the best bargaining tools at their disposal (Post, 2012). The government of China actually supports the unions, especially when negotiating with foreign companies. However, since the government does not have the capacity to train its workers to exercise their labour rights fully; NGOs in China have seen their role grow more important. With support from local journalists and labour lawyers, Chinese NGOs have aided workers with complaints regarding long working hours, unpaid wages, low wages, and poor health and safety conditions. In addition, various NGOs in China, including the China Labour Bulletin has helped workers to form trade unions in accordance with the Chinese trade union law (Warner & Zhu, 2010). CLB at first monitored and reported on protests by workers on their e-bulletin and website, such as the demonstration by poultry farmers at their local government office. However, they have evolved with implementation of the labour laws to a new approach that they refer to as the Case Intervention program. In this case, they contact employees at factories and encourage their leaders to form unions through elections across the entire factory, after which they help them with formal registration at the All China Federation of Trade Unions. The NGO is convinced that its main role lies with the organization of workers in China to form unions. These efforts have been encouraged by Guangdong government’s recent law that permits ten workers or more in a factory to form and register union branches (Warner & Zhu, 2010). NGOs in China have also taken the role of independent and credible monitors of labour standards. NGOs have the capability to improve workers’ rights and conditions, especially because the public is wary of government inspections and corporate claims, which makes the independent nature of NGOs necessary (Jia’ning & Chan, 2011). These NGOs can train workers and provide audits with CSR ASIA being a good example. This NGO develops tools for CSR promotion within the Asia-Pacific region, publishing reports and facilitating dialogue on CSR and labour rights. While most NGOs in China operate in this field through pressuring companies to attain certifications that are not probed for compliance, CSR Asia trains employers and workers as to the importance of workers’ rights protection (Jia’ning & Chan, 2011). In addition, they also provide supplementary funding to enhance the occurrence of improvements. NGOs are also important in the Chinese CSR sector for their ability to develop self-awareness and self-development among its workers. Institute of Contemporary Observation, or ICO, is one example of such an NGO, especially with its focus on corporate social responsibility, law, and labour (Jia’ning & Chan, 2011). Their main area of concern is the research into public policy, law, labour, occupational safety and health, and human rights protection. ICO began to offer international labour rights training to businesses based on the Chinese South Coast and had helped more than 200,000 employees by 2005. Partnering with the University of California, the NGO started a migrant worker community college that sought to offer training on legal responsibility and awareness, as well as basic health, prevention of HIV, and occupational safety and health. The two partners also offer foreign language classes, entrepreneurial skills training, and IT skills training, which are meant to improve career advancement chances for migrants. In addition, they also offer free consultation and legal advice to minority and vulnerable people, especially immigrant workers who work around the Pearl River Delta (Jia’ning & Chan, 2011). They work, in partnership with the government, to improve channels of communication among legal professionals, law offices, and legal aid centres, while also providing free information on social and legal aid applications. Conclusion The Chinese labour regulation system has gradually but steadily evolved since the mid-70s with increased focus on the labour standards. In addition, with the entry of international labour organizations like the UN Global Compact and ILO, the country’s laws have changed to reflect a more internationally standardized regime of labour laws. These changes have aided the prospects of labour regulations finding a third way for labour crises that have rocked China in the past. The state’s gradual acceptance and appreciation of NGOs and their partnerships with trade labour unions has seen their influence increase dramatically in the past fifteen years since the passage of the initial labour laws. For instance, the government accepts and encourages NGOs that focus on education and safety of workers regarding safety and health to avoid national crises. The influence of Chinese NGOs has been greatly enhanced by the presence of international labour institutions like the ILO and UNGC, as well as legislative victories for workers’ labour rights such as with the Company Act of 2006 and Labour Law of 2008. Overall, the influence of NGOs in China has been significant, particularly because they were almost non-existent before the mid-80s. References Hills, R. W. (2009). People’s Republic of China. In S. O. Filho, Global Practices of Corporate Social Responsibility. Berlin: Springer-Verlag. Howell, J. (2013). Non-governmental public action and social justice. New York, NY: Palgrave Macmillan Jia’ning, Y., & Chan, K. (January 01, 2011). How NGOs Advance Corporate Social Responsibility in China. The China Non-profit Review, 3 (1), 99-113. Lin, L.-W. (2010). Corporate Social Responsibility in China: Window Dressing or Structural Change. Berkeley Journal of International Law, 28 (1), 64-100. Post, S.V. (2012). 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