Labor relations in China
However, over time China began to reform and by the late 90's many had moved from the countryside into the cities in hopes of higher paying jobs and more opportunities.
The aim of this shift in economies was to match the international standards set by the World Trade Organization and other economic entities.
The ACFTU that was established to protect the interests of national and local trade unions failed to represent the workers, leading to the 2010 crackdowns.
Reformers targeted the labor market as unproductive because industries were frequently overstaffed to fulfill socialist goals and job-security reduced workers' incentive to work.
[3] In 1979–1980, the state reformed factories by giving wage increases to workers, which was immediately offset by sharply rising inflation rates of 6%–7%.
During 2003, 49% of the labor force worked in agriculture, forestry, and fishing; 22% in mining, manufacturing, energy, and construction industries; and 29% in the services sector and other categories.
The average household size in China is 2.62 people, this can be attributed to the rise in better work opportunities and conditions for those living in the city.
The reform and push for education in China has led them to create more skilled workers centered around urban areas.
The number of people who fall under the "floating population" meaning they are living in an area that is not where they are originally registered from totals 492.76 million.
This is a result of market forces penetrating into China in the early eighties that have brought on a plethora of issues, one of them including the "floating population".
In theory, membership is not compulsory, but in view of the unions' role in the distribution of social benefits, the economic pressure to join is great.
They have not engaged in collective bargaining or general strikes, as their principal duties have included assisting the party and promoting production.
[8] Thus, the unions have looked after industrial safety, organized social and cultural activities, and, provided services such as clinics, rest and holiday homes, hostels, libraries, and clubs.
[6]: 179 In China there exist labor laws which, if fully enforced, would greatly alleviate common abuses such as not paying workers.
[20] In the same year, due to COVID-19 Pandemic, the government allowed enterprises to keep adjustment of salaries optional and thereby enabling the business to refrain from offering wage hike to the workers.
In China there are an estimated 150 million members of this "floating population" who often find themselves migrating away from their homes and families to urban cities and areas.
However the issue is not whether that Chinese labor standards are too low, because according to the 1994 Labor Law, sought to "require employers to sign contracts with workers that guarantee minimum wage, monthly distribution of wages, a forty-four-hour work week, mandatory rest and vacation, and overtime pay".
The reason for which the labor standards in China are not enforced is due to the lack of incentive for any local or national official to do so.
[24] China's platform economy has grown substantially since the early 2010s, with its transactional volume reaching RMB 3.7 trillion in 2021.
[6]: 188 Starting in June 2021 and continuing through at least 2024, China's judicial system has engaged in a propaganda campaign to promote court cases decided in favor of platform economy workers against the companies for which they did work.
[6]: 182–183 Academic Angela Huyue Zhang writes that because court rulings in China do not create precedent, the campaign is a mechanism for guiding courts to tighten regulation in this area, particularly where platform workers lack contracts or have been characterized as independent contractors but are in fact subject to tight monitoring by the platform companies that dispatch them.
[6]: 183 In July 2021, eight of China's central ministries issued the Guiding Opinions on Protecting Labor and Social Security Rights and Interests of Workers Engaged in New Forms of Employment (Document No.
[36][37][38][39][40] On 1 June 2010 it was announced by Foxconn Technology Group, a major manufacturer of electronic products for export, that they would increase wages by 30%.
[45] On 18 June 2010 there were news reports of strikes at two Toyota parts plants in Tianjin, both operated by a Chinese subsidiary Toyoda Gosei.
This increase has led to many more Chinese citizens obtaining stable jobs that also put them at odds with those working at foreign companies.
Firms which have faced allegations of using forced student labor include foreign manufacturing giants Foxconn and Quanta.
According to a report published then by the Australian Strategic Policy Institute (ASPI), no fewer than around 80,000 Uyghurs were forcibly removed from the region of Xinjiang and used for forced labor in at least twenty-seven corporate factories.
[53] According to the Business and Human Rights resource center, corporations such as Abercrombie & Fitch, Adidas, Amazon, Apple, BMW, Fila, Gap, H&M, Inditex, Marks & Spencer, Nike, North Face, Puma, PVH, Samsung, and UNIQLO have each sourced from these factories prior to the publication of the ASPI report.
The system has been criticized for impeding the flow of free labor, resulting in idle workers and ultimately degraded national economic performance.
This especially limits the mobility of Chinese laborers as transference of hukou is only granted in certain cases or when one fulfills the criteria that the government has set.
