A new labor law was adopted specifically by the Chinese government, it is on 1 January will be effective (certainly the announcement is related to the recent scandals). Joseph Kahn and David Barboza (IHT) report including the attempts of foreign lobbyists, to water down the law so far as to whose business interests are not in the way comes:
It would probably reasonable to say that the authorities are prepared on site, the rules to interpret lax for everyone - the main thing is money flows.Many multinational corporations against had lobbied to draft provisions in earlier of the labor law. The early draft, circulated widely in business and legal circles, more sharply limited the use of temporary workers and required obtaining approval from the state-controlled union for layoffs.
Companies argued that the rules would substantially increase labor costs and reduce flexibility, and some foreign businesses warned that they would have little choice but to move their operations out of China if the provisions were enacted unchanged.
International labor experts said several of the most delicate clauses had been watered down. But lawyers representing some global companies doing business here complained the new law still imposes a heavy burden.The National People's Congress released a summary that said companies must "consult" the state-backed union if its plans workforce reductions, suggesting a softening from earlier drafts that gave unions the right to approve or reject layoffs before they could take place.
But it retained language that limits "probationary contracts" that many employers use to deny employees full-time status. It also states that severance pay will be required for many workers, and tightens the conditions under which an employee can be fired.
Moreover, the law empowers company-based branches of the state-run union or employee representative committees to bargain with employers over salaries, bonuses, training and other work-related benefits and duties.
In the past, workers have had to negotiate wages with their employers individually.The Communist Party's monopoly union is a legacy of China's socialist planned economy that in practice has tended either to play no role whatsoever or to help managers monitor and control workers. Workers are not allowed to form their own, independent unions.
[...]
Foreign executives said that they are especially worried about new labor regulations because their companies tend to comply with existing laws more rigorously than some of their Chinese competitors do. Their competitive disadvantage could increase sharply, they said, if the new rules put fresh burdens on foreign companies that their local counterparts ignore.
Chinese legislative officials said Friday that such concerns are overblown and that many local governments "bend the rules to favor foreign investors over local companies.
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