Hu: Better labor policiesvia Wikipedia Eight months after the much-discussed China labor contract law (LCL) came into force, the China Law Blog gives a first and thorough assessment. After so much upheaval their verdict is rather positive:
The LCL has already greatly impacted employee treatment in China and greatly impacted how Chinese employees view their rights. It also has increased employer costs, but less than publicized. The LCL has caused some companies to go out of business and caused other companies to leave China for other countries less protective of their workers, but many of those companies were not terribly profitable in the first place.It has been one of a whole set of landmark changes the current government started after Hu Jintao took over from Jiang Zemin. And while the country has not been short of natural and man-made disasters, improved labor conditions have succeeded to stay high on the agenda - where other priorities have dropped off.
Mainly companies with a bad reputation went out of business and the economy is still doing well.
There is still much coming up: an evaluation of the new labor arbitration law, the system of collective bargaining. And of course, at the end of the month officially all foreign companies need to have a trade union. Labor will be high on the political agenda for a long time.
More at the China Law Blog.
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More at the China Law Blog.
