Current System of Industrial Relations and Dispute Resolution - Term Paper Example

«Current System of Industrial Relations and Dispute Resolution» Introduction: The Chinese Republic has noted a number of changes and reforms in the economic, political and industrial systems. There have been a number of reforms and significant changes in the practices and policies of the workplaces and workforces (Moore 1989). However not all of these changes are seen in the factories and there is a certain amount of unrest and discomfort in the migrant workers of China. The main aim of this paper is to identify, analyse and discuss the various issues that pertain to the unrest among the migrant workers. The paper also aims discussing how Globalisation and the generational changes have impacted the unrest among the migrant workers in China and the factors that cause the unrest. The paper also focuses on critically analysing the key roles of the actors in the Chinese Industrial Relations system where focus has been placed on the theoretical aspects of the pluralist system of the Industrial relations, and a focus has also been placed on the current system that has been employed within the Chinese system in regards to the industrial relations and the dispute resolution process. Focus has also been laid on the international labour standards and these have been discussed based on the current situation of the country and the case study at hand. Although the unrest among the migrant workers of China is clearly based on a number of factors, the most essential factors of these are globalisation and generational change. This paper aims at discussing in light of the case study the industrial relations aspects of China. The following sections will explain each of the above mentioned factors in detail and will present the main causes of the unrest. Globalisation: Globalization leads to a broader outlook of the people across the world and is an attempt for a better inter – connected and inter – dependent world. The main aim here is to achieve free transfer of capital, goods and services across the international borders (Mooney and Evans 2007, p. 1 - 5). Although globalisation has brought about a number of positive developments to a number of countries, there is still a major impact that it has created on the labour of a number of smaller and fragile economies. A few of the best examples of this include the labour markets of countries like India and China. One of the major features of globalisation is that it follows the dependency theory. Here it simply implies that the wealthy nations keep the developing nations at a sub – servant levels. They impose conditions and free trade policies along with loans to the developing nations (Prasad, et al. 2003). In the case it is evident that the company that the author is talking about works for the outsourced processes of major multinational companies like Apple, Sony, Dell and HP (Striking Out 2010). These companies use the option of outsourcing their processes to countries like China and India, where the labour is extensive and is relatively much cheaper. As seen clearly in the case, people are being exploited and the actual job which would cost the companies as much as £15,208 p.a. (£1,200 p.m average salary of Factory workers in UK) (My Salary 2010), or as much as $1000 p.m (average salary of factory/auto workers in US) (Bovt 2007). However as has been clearly explained in the case, the employees earn as much as £50 p.m. Although the level and intensity of work is similar, the amount paid to the employees is very low and this is clearly a level of discrimination and unfair practice for the employees. In addition, countries like China and India do not have safe working conditions and do not provide the employees with the necessary breaks during the working hours. This is also clearly explained in the case study, where the author explains, that the employees are only allowed short breaks for toilets and only downtime to be at the workbenches (Striking Out 2010). Globalisation has undoubtedly provided a large number of employments to people across the country however; this is at the cost of discrimination among the employees and also no proper treatment of the employees. In conclusion, it is clear that Globalisation has helped the country in many ways and has allowed the economy to grow to a great extent. Globalisation has also led to intensification of the competition and interdependence of the various markets across the country. With Globalisation, there is a much higher level of work available for the people of the country; however, the pay that the people receive is not in sync with the type and amount of work. For instance, the author explains that a hairdresser would earn as much as RMB 2,500 (Pounds 240), however the case of the Honda factory worker was only around RMB 930 (Pounds 90) (Striking Out 2010). Also as noted earlier in the discussion the pay for similar jobs in countries like UK and US is relatively much higher and with overall better safety and facilities to the employees. Hence it is evident that the unrest in the employees is clearly due to the low pay and bad treatment that they receive. Globalisation does provide a high number of jobs to the people however; it is at the cost of the employees and their health and safety. Generational Change: In the current times, where the world is being led into an information age and people are much more aware of their rights, the chances for discrimination or any form of illegal working conditions for the employees is slowly becoming difficult as people are now fully aware of their legal rights. Also, the trade union people not respecting the rights of the people and accusing the people wrongly of being ‘illiterates’ when the rights are brought out (Striking Out 2010). In the current age, people are not ready to be run over and to be ‘Walk – over’, like the previous generations. The current generation is more focused on living a life with dignity and respect and to also get what their actual rights are. As the author explains, people are now looking for working with ease. The new generation focuses on realising their values and to develop a strong set of values to live a life with dignity and pride. The current generation does not mind doing any job, as long as it is legal, rightful, and keeps up with the pride and dignity and there is no humiliation present. Unlike the previous generation where the people were fine to work on stringent working conditions and were fine not to have breaks, or even receive overtime for their work, the current generation ask for their rights, i.e. the overtime money and good working conditions where the toilet breaks are not timed (Harney 2009). A research conducted in 2001, by DYG Inc., highlights that there is clearly a major difference in the working style of the people of the current generation. The report highlights that the current generation identifies itself as a “breed apart, talented, skilled and in demand” (DYG, Inc. 2001). The report also highlights that the current generation is proud of their talents and is also focus on the financial packages to a great extent. A simple difference as clearly seen in the case study as well is that earlier generations, worked and kept up with all the ill – treatment by the employers, just to make sure that they can earn and save up before they leave and go back to their homes. The author also moves on to explain, “China's very success over the past two decades has also made them more confident and less willing to be cowed when their hoped-for future doesn't materialise” (Striking Out 2010). Hence based on the new attitude of the workers and the new generation, it is evident that there would clearly be a high level of unrest among the workers as there is no care and attention given to the safety of the employees. Also, the companies like Foxconn, not only limit the employees in terms of their break times but also keep a tab on how much the employees can move while at work. The current generation do have a sense of responsibility and value their work to a great extent, hence do not require to be kept under leashes to be able to be more productive. The report by DYG Inc., also brings out the need of the employees for a balance between their personal and professional life and the workers of Foxconn, do everything including, eat, sleep, work and play only within the premises of the company (Striking Out 2010). All these factors together have a major impact on the restlessness of the employees and can clearly lead to unrest among the workers to a great extent. Hence it is clear that the unrest among the workers is clearly based on the globalisation and the generation gap. The unrest is clearly impacted by the changing ways of thoughts of the people as well as the changing ways of life of people across the country. Pluralist System of Industrial Relations: In the case of pluralist systems the organisations are made up of strong and powerful actors like the leaders and management. The two main groups here in the case study are the trade union and the management. It is essential to note that the trade unions tend to be the representatives of the employees and they are responsible for the various activities like the collective bargaining and also ensuring that the employees receive their rights. However as seen in the case study, it is evident that the union officials also do not show any kind of dedication and focus on the employee needs and rights. Here the appropriate response of the trade union representative would be to check for the details of the rights of the employees regarding the overtime and to fight for the employee rights rather than discriminating and disregarding the views and questions put forth by the workers. Being such strong figures within an organisation, the trade union representatives and officials need to ensure that the employees are given all their rights and also focus should be on the comfort of the employees. Also, the other actors here in this case would be the management, of the companies. As stated in the case, in a number of places, the head of the local trade unions is also the factory boss; this makes it even more difficult for the people to fight for their rights and to resolve conflicts. The case study clearly highlights, “The recent labour unrest has sometimes been as much about protesting against such conflicts of interest in the trade unions as it has been about the management” (Striking Out 2010). Things like these tend to create an issue in the possibility of conflict management let alone the rights of the employees. The pluralist style of industrial relations thereby leads the overall work place to have major unrest in China. Current System of Industrial Relations and Dispute Resolution: The current system used in dispute resolutions does not actually take into account the needs of the employees. It is evident from the case as well as from the China Labour Bulletin that the main issues and labour dispute that has been noted include the non – payment of wages and also the areas focusing on the overtime and social security benefits (Nelson and Reeder 1985). Other factors that are also disputed include the lack of compensation and lack of pay for various issues like the work related illnesses and injuries and also for the termination of the employment. The current dispute resolution of the country focuses on the completing the process as soon as possible. The China Labour Bulletin highlights a study which found that almost two thirds of the disputes are tend to be resolved within one year, while only less than two percent have been noted to be resolved within six months (China Labour Bulletin 2009). The main aim of the law is to ensure that the issues are resolved in a positive manner rather than directly going into arbitration. However considering the case study it is clear that the chances of the employees attempting any legal action is quite difficult simply because the unions representatives themselves did not show any interest in the laws and as mentioned earlier, most of the labour trade union leaders tend to be the factory bosses as well. Hence this also leads to a number of issues in terms of the dispute management and providing the rights to the employees (Oakley 2002). It can clearly be noted that the current industrial relations of the country is not in a very strong state, and the owners and businesses have a higher edge without any or much importance given to the employees. Also, the employees are clearly being exploited and as explained in the case, “China is basically controlled by the capitalists” (Striking Out 2010). Hence it is clear that the current situation is not very strong and there needs to be some major action taken to ensure that the employees are safe, not exploited and given their rights in the companies. Relation to International Labour Standards: It is important to note that China has been carrying out a number of reviews and has been working towards the involvement in terms of the international economy. The country has taken up serious commitment to be in par with the International Labour Standards and to work towards building a better country for the workers (Swepston 2002). It is essential to note that although the country has been working and has been dedicated to make a better country in terms of the work force, there are still a number of glitches in the overall working. Although a number of acts like Equal Remuneration Convention 1951 (No.100) of 1990 (Swepston 2002), there are still no signs of equal remuneration for the workers in the factories. Also the Discrimination (Employment and Occupation) Convention, 1958 (Swepston 2002), however there has not been any clear sign of any form of non discrimination in terms of Employment and Occupation within the country. It is essential to note that China has been trying to explore the commitment to be able to be in line with the international laws. Also, the country has tried to develop itself to be at par with the international Labour standards, however the country has not been very successful and this is clear and evident from the case study. In conclusion it is clear that the country clearly requires a higher level of focus on the labour standards with special focus to the factory workers and the migrant workers. Conclusions: In conclusion based on the above discussion, it is clear that although a wide range of policies and procedures have been developed and need to be implemented in China. It is clear from the case study that China is rich in terms of the resources, however due to the lack of good industrial relations and the lacking respect to the employees, there has been major unrest in the industries. Also, it is clear that in the current times, the generational changes has a major impact on the employees and as stated in the case study the employees of the current time, “”They are more sensitive to social injustice than in the past," Lee adds. "When they are fed up, they will say 'enough is enough'. They want a fair share of the prosperity they create” (Striking Out 2010). The industrial relations hence has a high need for change and improvement in China. Bibliography A.Nelson, James, and John A. Reeder. "Labor Relations in China." California Management Review, 1985: p13-32. Bovt, Georgy. Don’t Believe in Fairy Tales. 2007. http://www.sptimes.ru/index.php?action_id=2&story_id=22646 (accessed September 21, 2010). China Labour Bulletin. 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