MGTO 630C Staffing and Managing Human Resources Dr. Christina Sue-Chan Labour - Management Relations Chapters Saturday, March 22, 2003 Please note: This is only a preliminary version of the file that will be shown in class. Depending on the flow of in-class discussion, we may not be able to discuss all the overheads in this file.

2 By the end of the performance management module, you should be able to Be familiar with some of the international standards / codes of conduct governing labour / industrial relations Develop insight into joint consultative committees as a mechanism for facilitating two-way conversation between employees and management  Hong Kong  Germany  China

3 International Standards and Codes of Conduct United Nations Code of Conduct for Transnational Corporations UN Declaration Against Corruption and Bribery in Int’l Commercial Transactions OECD Guidelines for MNEs ILO Tripartite Declaration of Principles. Fundamental Principles on Rights at Work Regional Trade Treaties WTO/World Bank/IMF Universal Declaration of Human Rights

4 Global Compact (Initiated by Kofi Anan, Secretary General of UN, 1999) Labour Principle 3: freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation.

5 Independent Codes of Conduct CAUX Round Table (CRT)  Senior business leaders from EU, US, Japan  Promote principled business leadership Centre for Ethical Business Cultures  Similar to CRT Interfaith Declaration  Christians, Jews, Muslims Social Accountability International  Social Accountability 8000 (SA8000) Specific performance standards set with minimum requirements; auditors consult with and learn from interested parties, such as NGOs, trade unions and, workers; complaints mechanism

6 Labour / Employee Relations Hong Kong  Haeco’s Works Consultative Committee

7 Other Jurisdictions Germany  Co-determination Works council China  Labour legislation  Trade unions

8 Statutory Codetermination in the (Federal Republic of ) Germany MANAGING DIRECTOR 1 (Labour Director) SUPERVISORY BOARD 2 Shareholdersemployee representatives SHAREHOLDERS’ MEETING EMPLOYEES WORKS COUNCIL TRADE UNIONS Works Constitution Act, 1972 elect support elect election proposals elect appointed and supervised by Iron & steel and coal indus. Codetermination Act, 1951 Works Constitution Act, 1952 Codetermination Act, Chief Executive Officer; 2 Board of Directors

9 Works Council Works Council Rights Participation Codetermination Workforce planning Work procedure Job situation Establishment organization Dismissals Protection of labour Operation changes Working hours Methods of payment Vacation Social amenities Vocational training Establishment order Hirings Transfers

10 Legal Framework Supporting Unionism in China PRC, Labour (Union) Law (April, 1992)  Article 3  general and universal right of all employees to organize and join trade unions All manual or non-manual employees in enterprises, institutions or state organs within the territory of China who rely on wages or salaries as their main source of income, irrespective of their nationality, race, sex, occupation, religious belief or educational background, have the right to organize and join trade unions according to law.

11 Employment Contracts (PRC) Individual contracts, 1980  Contract must comply with laws and regulations of PRC  Contract must be based upon voluntariness and equality  Contract must be accepted by both parties after negotiations between them

12 Written Contracts (PRC) Terms: fixed term or flexible term Content of work Work protection and working conditions Wages and method of payment Work discipline Termination of the contract Responsibility for the violation of the contract Revoked upon agreement between the two parties

13 Collective Employment Contract Written agreement between representatives of staff and workers as one side and enterprise on other Trade Union Law  Trade union represents party of the staff and workers  In non-unionized enterprise, representatives democratically elected by staff and workers and require agreement of more than half of all staff and workers  75.8 million (less than 50%) of total staff and workers in urban areas covered by collective contracts

14 Employee Representative Associations million employed by state-owned enterprises; 6.2 million employed in private enterprises in urban areas in No employer representative organizations acts as major mouthpiece for employers Employee Representative associations  All-China Federation of Trade Unions  All-China Women’s Federation

15 Trade Unions 586,000 unions in 1996 with million members  Assist enterprise in organizing workers and staff  Promote state economic reforms and economic policies  Improve worker’s technical skills and education level  Provide welfare services  Represent workers and staff to protect legitimate rights

16 Dispute Settlement Mechanism Mediation and arbitration at enterprise level  Filing of application for mediation  Mediation committee investigates  Mediation begins  Mediation agreement in writing

17 Common Types of Labour Disputes 3 types of labour disputes  Means of terminating relation between employing units and employee  Wages, benefits, social security, training  Labour protection and insurance

18 Debate Do labour unions (employee representative associations) have a role in promoting and maintaining effective / good employee – employer relations?

19 Follow-up Learning-styles survey