Documente Academic
Documente Profesional
Documente Cultură
February 2007
Contents
Abbreviations used
The Structure and Workforce of the Chinese Garment Industry
The context for Chinese workers
Economic Liberalisation since 1979
Internal Migration Laws
Oversupplies of low skill labour
Chinese Labour Law
The All China Federation of Trade Unions (ACFTU)
Membership and recruitment
Relationship between local branches, the ACFTU and the Chinese Communist
Party (CCP)
Labour dispute mechanisms
Challenges facing the ACFTU
Working Conditions in the Chinese Garment Industry
Exploitation of migrant workers
Restrictions on Freedom of Association
Recent Developments
Collective Contracts
Changes to Trade Union Law
Increasing labour disputes and unrest
Launch of CSC9000t Code of Conduct
Addressing the problems faced by Chinese garment workers
Parallel Means
Worker Training
The Chinese Government
The EU and WTO position on trade with China
List of references
Abbreviations used
ACFTU All China Federation of Trade Unions
ATC Agreement on textiles and clothing
CCP Chinese Communist Party. National Government of China
CNTAC - China National Textile and Apparel Council
FoA Freedom of Association
OHS Occupational Health and Safety
MFA Multi-fibre arrangement
SOE state owned enterprise
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workers relocating to areas with more skilled and better paid jobs e.g. in the electronics
industry11,12. In response, some wage increases in Guangdong have occurred, but
some factories have also relocated to other provinces.
Chinese Labour Law
Freedom of Association
There remains no Freedom of Association in China. Article 3 of Chinas trade Union Law,
states that all manual or mental workershave the right to organize and join trade unions
according to law13. However, in reality, the All China Federation of Trade Unions
(ACFTU) is the only legally recognised trade union and therefore has a complete
monopoly on representation. (See below for more information on the ACFTU).
International Agreements
China has ratified the UN covenant on Economic, Social and Cultural rights, but with
reservations on the right to organize trade unions. It has not ratified the International
Labour Organisation (ILO) conventions on Freedom of Association (FoA) and the right to
collectively bargain (no.s 87 and 98).
However, the ILO 1998 Declaration on Fundamental Principles and Rights at work,
requires all members to respect, promote and realize FoA, regardless of whether they
have ratified the conventions. So far China has ignored this14.
The law on strikes
The right to strike was removed from the Chinese constitution in 1982 and is not
mentioned in the most recent trade union and labour law acts13. Formally the law neither
allows nor disallows strikes though in practice they are frequently repressed7,13 . Despite
this, there is some pressure and lobbying within China for the formal right to strike to be
reintroduced. In the city of Dalian, pilot regulations on strikes have been implemented15
and some academics and labour lawyers on the fringes of the ACFTU are quietly lobbying
for the right to strike on the grounds that it is necessary for the successful functioning of
the new market economy7. In addition, the Chinese government didnt enter any
reservations on the right to strike when signing the UN Covenant on economic, social and
cultural rights7.
The formal role of the ACFTU when strikes occur is to mediate between employers and
employees to resolve the situation. An ACFTU branch could not legally instigate a strike
and is not the representative of the workers in negotiations.
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The liberalisation of Chinas economy, increasing Foreign Direct Investment (FDI) and the
new labour law framework have increased the demands of workers on the ACFTU. The
number of independent labour actions and spontaneous protests in China, (despite severe
repression) have increased significantly in recent years indicating the perception by
workers that the ACFTU is unable to defend their interests5,15,17 . In turn, the increases
in labour unrest have increased government pressure on the ACFTU to resolve the
disputes and maintain order and productivity.
The ACFTU also faces financial challenges. ACFTU staff are paid by the CCP, however as
the government seeks to reduce budgets, these finances are under threat. Other money
comes from a 2% levy on the wage bill of all SOEs. However with mass closures and
downsizing in this sector ACFTU membership and revenue have fallen. Its ability to
replace this from the private sector is limited by a low presence in private enterprises and
lack of any enforcement mechanism for collecting wage levies19.
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Due to the cost of work visas, some employers pay for these in advance, meaning workers
are in debt when they begin their contracts. Many workers are also required to pay
deposits to the employers or hand over their ID documents at the start of the contract2,
12,24 . This creates a system of economic bondage for many migrant workers within the
garment sector allowing employers to more easily enforce excessive overtime and flexible
hours.
According to the Fairwear Foundation there is little understanding amongst migrant
workers of their legal rights or entitlements2. Most are either not covered or only partially
covered for maternity pay, sick pay and work injuries12, 21 . Pensions are generally not
provided1.
Restrictions on Freedom of Association
Workers who organise independently, protest or strike in China do so at great personal
risk and face violent repression and imprisonment13. Labour activists can be sentenced to
forced labour, following criminal trials which do not reach international standards according
to Amnesty. This is known as Reform through labour or Laogai. They can also face reeducation through labour (or Laojiao) which is a form of administrative detention without
trial or appeal. Officially this can not exceed three years but in practice it can be extended
at will24.
Recent developments
Collective Contracts
Since the 1990s the ACFTU has been promoting the use of collective contracts as a
means to improve working conditions. These are negotiated between trade union
representatives and employers and cover working hours, pay, H&S and insurance18.
Where a Union branch doesnt exist, workers are allowed by law to negotiate themselves
with employers15, 18. The number of collective contracts is growing, though there are few
collective contracts used in private companies.
In practice these contracts normally only reflect minimum labour law requirements and do
not involve any actual bargaining15, 18. Also, as negotiations are carried out by ACFTU
representatives, workers are not always aware that the contracts exist.
Changes to Trade Union law
The latest changes to the trade union law in China give more priority to worker
representation in labour disputes (the ACFTU has commonly sided with employers in the
past19). They provide extra powers for local branches to hold enterprises liable under the
law for breaches in collective contracts and to request government assistance if labour law
is broken. There is also some extra protection provided for union officials from employer
retaliation23.
However, the new law still maintains the ACFTUs monopoly status and does not prevent
union officers from being members of the employers management.
Increasing labour disputes and unrest
Labour disputes have been increasing significantly across China since the
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1990s13,17, 18. The number of mass incidents (sit-ins, riots, strikes and
demonstrations) reached 74 000 and involved 3.7 million people in 2004. This was an all
time high and compared to 10 000 incidents in 199425. Within the garment sector the
number of arbitrated disputes (taken to local labour offices) has also increased, mainly
about wages and OHS complaints5. Examples include:
c) In Zhejiang province, 12,000 workers in 113 private sweater factories were involved
in strike action over wages. The dispute continued for four years with annual strikes
during the busy season. In 2004, with involvement from the ACFTU, a collective
agreement on minimum wages was agreed10.
d) In Beijing, 24 female migrant workers in the garment sector took their case of
withheld wages to the courts. Working with legal aid attorneys they eventually
received all their back wages plus compensation10.
e) In 2004, workers took part in mass protests over low pay and excessive overtime at
the Stella International shoe factory in Guangdong. Following the protests 10
workers were arrested and charged for criminal damage caused during the protests.
However, working with China Labour Bulletin the workers secured legal
representation and were able to challenge the lack of evidence provided against
them. In a landmark case, the lack of alternative means of representation was cited
by lawyers as a key reason behind the protests26.
Launch of CSC9000t Code of Conduct
CSC9000t (the China Social Compliance 9000 for the textile and apparel industry) is a
code of conduct for textile and clothing enterprises. It was launched in 2005 by the China
National Textile and Apparel Council, (CNTAC), an industry association existing to develop
the textile sector. It is also administered by them. The CSC9000t includes general
principles, detailed regulations on labour conditions and a process for self assessment.
The CNTAC sees the CSC9000t as a means to claim back Chinese control over their
workers rights, streamline the multiple codes and auditing procedures that have been used
up until now and improve Chinas labour standards in the eyes of the global community
(thereby reducing calls for protectionism against China).
As of August 2005 roughly 170 Chinese firms had signed up to participate, and two major
foreign investors, the Hudson Bay Company (Canadian) and Linmark (Hong Kong) had
agreed to work with their suppliers to implement the code. However, the code is still very
new, proportionally only a very small number of firms are involved and it is not compulsory.
CSC9000t could be of some use as a tool for progress on code compliance other than
freedom of association, but there are several problems:
The code is based mainly on Chinese labour law, plus some international
conventions. Therefore it does not allow for freedom of association and falls
short of key ILO standards. As such, if it gains popularity it will undermine other,
more rigorous codes.
It goes against the idea that it is not possible for companies to meet their full
social responsibility obligations while sourcing from China.
The ITGLWF has characterised it as a watered down version of SA8000, due
to the absence of FoA provision, living wage allowances and freedom from
discrimination on political affiliation or sexual orientation.
There have been significant problems with previous auditing systems due to
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List of references
1. Hong Kong Christian Industrial Committee (HKCIC) (2004) Conditions of women workers in SEZ and
Labour standards in supplier factories of German garment retailer companies and brands in China.
Accessed 3/4/06 from http://www.cleanclothes.org/pub.htm
2. HKCIC (2004) FairWear Foundation background report on China, Fair Wear Foundation, Amsterdam
I3. CFTU (2005) Stitched Up! How those imposing unfair competition in the textiles and clothing industries
are the only winners in this race to the bottom, accessed 04/06 from
http://www.icftu.org/displaydocument.asp?Index=991223200&Language=EN
4. www.maquilasolidarity.org/resources/maquilas/china.htm (Maquila Solidarity Network), accessed 03/06
5. Chan, Jenny W. L (2005) Gender and Global Labour Organising: Migrant women workers of the Garment
industry in South China, accessed 04/06 from www.sweatshopwatch.org
6. www.oxfam.ca/news/maketradefair/TAOR_facts.htm, (Oxfam Canada) accessed 27/05/06
7. Chen, John (2004) Two core labour rights assessed, International Union Rights, 11(4), p6-7
8. China Textile University and Harvard Center of Textile and Apparel Research (1999) The development of
the China Apparel Industry Report, Beijing
9. Li, Jane (2004) MFA Phase Out Impact on Chinese workers, Asia Labour Update, Issue 52, accessed
5/06 from www.amrc.org.hk
10. America Centre for International Labour Solidarity (2005) Justice for all: The struggle for workers rights
in China, Washington, accessed 04/06 from http://www.solidaritycenter.org/content.asp?contentid=501
11. www.china.org.cn, (China Internet Information Centre, Beijing), accessed 27/5/06.
Cafod (1998) Asian Garment industry and Globalisation Policy Paper
13. Cornell University (2000) Freedom of Association and the effective recognition of the right to collective
bargaining, accessed 05/06 from www.cornell.edu/
14. Blackburn, Daniel (2004) China and the labour movement, International Union Rights, 11(4), p2
15. ICFTU (2005) China, Peoples republic of: Annual Survey of violations of trade union rights, 2005
accessed 04/06 from http://www.icftu.org/displaydocument.asp?Index=991222281&Language=EN
16. www.acftu.org.cn (ACFTU), accessed 05/06
17. http://www.ihlo.org/LRC/ACFTU/index.html (IHLO article, ACFTU 14th Congress: The stalemate
continues), accessed 3/4/06
18. Kai, Chang (2004) Collective bargaining: problems and solutions, International Union Rights, 11(4), p34
19. Howell, Jude (2004) Trade Unionism in China, Sinking or Swimming?, accessed 04/06 from
http://www.ihlo.org/LRC/ACFTU/000604.html
20. China Labour Bulletin (2006) Wal-Mart Unionisation Drive Ordered by Hu Jintao in March A Total of 17
Union Branches Now Set Up, accessed 29/8 from www.china-labour.org.hk
21. Wong, Monina (2005) Moving beyond the MFA. Regulating Business Practices through Strengthening
labour, Hong Kong Christian Industrial Committee.
22. Loong-Yu, Au (2006) The Post MFA era and the rise of China accessed 3/04/06 from
http://www.ihlo.org/LRC/G/001105.html
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23. Cooney, Sean (2004) Limitations and possibilities, International Union Rights, 11(4), p8-9
24. Amnesty International (Dutch section) (2006) When In China: Encounters with Human Rights
25. ICFTU (2005) Whose Miracle? How Chinas workers are paying the price for its economic boom.
Accessed 04/06 from http://www.icftu.org/displaydocument.asp?Index=991223214&Language=EN
26. Dongfang, Han (2004) Its our union and we want it back, International Union Rights, 11(4), p16-17
27.
http://ec.europa.eu/comm/commission_barroso/mandelson/speeches_articles/temp_icentre.cfm?temp=sppm
033_en, accessed 06/06
28. Oxfam (2004) Trading Away our Rights: Women working in global supply chains. Oxford: Oxfam
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