Unions are essential to protecting the interests and rights of workers, and the number of trade unions should be increased particularly in non-public enterprises

　　By LAN XINZHEN

　　Li Haisheng, an employee at a Beijing outlet of Wal-Mart’s SAM’S Club for more than two years, has always had a strong desire for joining a trade union and enjoying the protection of rights such an organization would bring.

　　Two years ago, Li, 28, moved from Hebei to Beijing and was lucky enough to get a job as a porter at SAM’S Club. His interest in trade unions was initially aroused after he learned that every state-owned enterprise has its own trade union—all of which pledge to protect the legal rights of workers upon infringements from employers.

　　Despite being employed for two years at the time, Li was totally in the dark when it came to his lawful rights, including working hours and payment, all of which are determined by his employers.

　　Wal-Mart, the world’s largest supermarket chain, has some 20,000 Chinese employees at 40 stores in 18 big cities across China. Beijing SAM’S Club, a branch of Wal-Mart Store Inc., has no trade union organizations thus far set up for any of its employees. Apart from Wal-Mart, several other multinational companies operating in China, such as Kodak, Dell and Samsung, have no trade unions set up in accordance with relevant Chinese laws.

　　Call for Trade Unions

　　NO UNION: An employee from Beijing SAM’S Club Branch of Wal-Mart selects fresh seafood for consumers. The company rejects the establishment of any trade union among its employees

　　In August 2004, the Standing Committee of the National People’s Congress (NPC) launched a nationwide inspection of the implementation of the Trade Union Law. Results indicate that less than l0 percent of the 500,000 foreign-funded enterprises registered in China have established trade union organizations.

　　The phenomenon has aroused concerns from All-China Federation of Trade Unions (ACFTU), which plans to blacklist those enterprises who refused to set up trade unions under relevant Chinese law, and urges other administrative and judicial departments to solve the problem. This means that foreign-funded enterprises may be sued if they persist in their refusal to allow the establishment of trade unions.

　　In accordance with the Trade Union Law, both manual and mental workers of enterprises, institutions and government departments in China who rely on wage income as a main source of living expenses, regardless of their nationality, race, sex, occupation, religious beliefs and educational level, have the right to participate in and organize trade unions in accordance with the law. No organization or individual has the right to obstruct and prohibit the establishment of such trade unions. The law offers new hope for Li, who said if a trade union was organized in his store, he would actively participate in it.

　　Silent Resistance

　　MUTUAL BENEFITS: The establishment of trade unions benefits both employees and employers

　　Most foreign-funded enterprises chose to keep silent on the decision of the ACFTU. A manager from Beijing SAM’S Club declared, “We are not against the establishment of a trade union, but we have not got any such request from our staff until now.”

　　Is that really the case? Li told this reporter, “We are afraid of putting forward such a claim. The employment market is harsh, and no one wants to sacrifice his job for establishing a trade union here.”

　　Sanhuan Sagami High-Tech Co., a Sino-Japanese joint venture located in Beijing, recently came under the spotlight after it fired its trade union leader, Tang Xiaodong. The Beijing Municipal Federation of Trade Unions has been watching this incident very carefully. To date, however, Tang has not resumed his job.

　　“The most important reason [for the failure of the establishment of trade unions] is the boycott of employers,” said Professor Wang Shouzhi, head of the Labor and Human Resources Research Laboratory of Capital University of Economics and Business.

　　China’s Trade Union Law stipulates two ways for the establishment of trade unions: One is a request from employees on a voluntary basis, and the other is a suggestion from the trade unions at a higher level. Trade unions in the upper level of the national union hierarchy are authorized to send union officials to enterprises and help them establish trade unions. Enterprises have no right to interfere in the process.

　　But the Shenzhen Municipal Federation of Trade Unions pointed out that it was very difficult to contact Wal-Mart’s China headquarters, which always used the excuse that managers were absent. Local branches of Wal-Mart have also worked hard to stop the establishment of trade union organizations, according to Li Linsen, Vice Chairman of the Jiangsu Provincial Federation of Trade Unions. “Our Nanjing Municipal Federation of Trade Unions tried to convene several meetings, but no progress has been made until now,” he added.

　　Kodak (Xiamen) Co. Ltd.’s internal policy on this issue is that the establishment of trade unions is the internal affair of the trade union organization, and Kodak is a brand for the company, so the trade union organization in the company shall not be named under Kodak. Furthermore, the company won’t provide any place for trade union activities, and the company’s managerial personnel should not participate in such activities.

　　Misunderstanding

　　Trade unions are mass organizations of the working class set up voluntarily by enterprise employees. Trade unions at all levels should be established according to the principle of democratic centralism, and the establishment of grassroots trade unions, regional trade union federations at various levels. National or regional industrial trade union organizations must be approved by trade unions at a higher level. Trade union organizations at all levels across the country form the All-China Federation of Trade Unions. Trade union organizations at a lower level are under the leadership of trade union organizations at a higher level.

　　It is said the reason for Wal-Mart’s resistance against the establishment of trade unions is the fact that the company has no trade unions at any of its global affiliates, including China.

　　Professor Wang Shouzhi pointed out, “Some company leaders lack a clear understanding of the trade union organization in China. Employers of non-union companies do not want their staff in unions partly because they fear trade unions would ‘cause trouble’ and are worried about the high costs of union activities.”

　　Guo Jun, Deputy Director of the ACFTU Legislative Affairs Bureau, said, “Some local governments even worry that the requirements on the establishment of trade unions may adversely affect the enthusiasm of foreign investors. As far as we know, some local governments stress too much on GDP growth, neglecting the protection of employees’ legal rights and interests, which obviously violates the law. For example, Guangdong has the policy of deferment in the establishment of trade unions for foreign-funded enterprises.”

　　Li Linsen noted that another reason is cost. Under China’s Trade Union Law, enterprises pay the outlay for labor unions, which is equivalent to 2 percent of the total wages of employees, with 60 percent repaid to employees in a form of welfare, and 40 percent submitted to trade unions at higher levels.

　　“Trade unions should be set up to protect the legal rights and interests of employees. The non-union companies have constantly breached contracts by means of late wage payment, poor working conditions and refusal of overtime pay,” said Li. “For more profits, some of them infringe upon the lawful rights of Chinese workers. The latter cannot be protected effectively under the deleterious type of work they do, which even results in ultimate loss of life.”

　　Guo Jun said, “Some enterprises refuse to set up trade unions, saying that they receive no such requests from their employees. They also toss aside the requests from trade unions at higher levels, and resist publicizing relevant policies on trade unions to their employees, which is obviously a violation of the Trade Union Law.”

　　Where there are workers, there should be trade unions for them. This is the principle that drives the ACFTU, who believes trade unions are not only for employees of state-owned enterprises, but also for migrant workers and employees from foreign-funded and private enterprises.

　　Many sociologists believe the establishment of trade unions will not disrupt any enterprise, since China’s trade unions protect the legal rights and interests of labor to promote the further development of enterprises.

　　Trade union organizations play an increasingly important role in supervising and coordinating labor relations, which directly dissolves frictions between management and the work force. Trade unions can also help avoid worsening of these frictions, which may result in serious problems at a later stage.

　　“The function of our trade unions is not to undermine, but rather maintain a sound environment in the work place. Farsighted entrepreneurs should understand the social value of trade unions. The establishment of trade unions in foreign-funded enterprises can benefit both employees and investors, and help solve problems between them in a more rational way,” said Guo Jun.