Put Money Into China: Dealing With Labor Unions And The Communist Party

May 20, 2013 robot Uncategorized

When the employees request the establishment of the labor union, the employer must assent and offer help. Furthermore, certain thresholds apply which require employers to hire a employee labor representative (businesses with at least 200 employees must hire one employee labor representative, with more workers essential at higher thresholds). Joint Ventures and WFOEs must allocate an amount equal to a minimum of two percent of the actually paid regular salaries…

Job Unions

The company must provide and assent assistance, In the event the employees obtain the establishment of the labor union. More over, specific thresholds implement which require employers to hire a employee labor representative (businesses with at least 200 workers must hire one employee labor representative, with more uses necessary at higher thresholds). WFOEs and joint Ventures must spend an amount equal to no less than two per cent of the actually paid monthly salaries of all workers as trade union funds if the company has not established a trade union) (this amount must be paid to the neighborhood labor office. The trade union should use these resources in accordance with the trade union finance management measures issued by the All-China Federation of Trade Unions, which the labor union is required to be considered a member.

Labor union representatives have the right to go to board meetings, though they do not

have voting rights, and they must be asked to go to board meetings if work issues are discussed. The trade union performs an important advisory function regarding personal and collective labor contracts, termination of employees, mediation of conflicts, layoffs, and supporting laid-off employees to locate new work. The labor union may not impose its will to the employer in these matters. Interestingly, labor unions do not have the right to strike. Nevertheless, labor marriage consent is needed in a few M&A transactions.

Communist Party Organization

When the workers request the establishment of the Communist Party organization in the workplace, the employer should assent and could be needed to give assistance. A Communist Party organization must be recognized in any office with at least three Communist Party members, and the company has an obligation to accommodate and help it (details of this obligation remain unclear at this point but will probably vary based on the size of the enterprise and the amount of Communist Party membership among employees).

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