1. An exploratory system Chinese experiences in collective bargaining
Guangping Jiang, Director-General
International Liaison Department
All-China Federation of Trade Unions (ACFTU)
Oct. 2009

2. Some points to share:
1. How do we see collective bargaining as a latecomer in the market economy?
2. Cross the river by stepping stone! Adaptability is key to the vitality of collective bargaining.
3. A package of initiatives needed to deal with multinationals.
4. Collective bargaining can make a difference in a time of crisis.

3. How do we see collective bargaining as a latecomer in the market economy?
Legislation is imperative for creating an enabling environment to promote collective bargaining in a country where labour and management both lack a sense of the market economy.
A set of centralized guidelines together with commitment on the part of unions is the key to helping enterprise unions, which are in a weaker position.
A team of professionals is important for the outcome of bargaining.
Mutual reinforcement between tripartism and collective bargaining.
Democratically managed workers’ congress supplements collective bargaining at plant level.

4. How the CB system could play a true role?
Mutual reinforcement between national tripartite meeting system and collective contract system at national level.
Mutual complementarity between collective bargaining and the democratic management system at enterprise level.

5. Development of contents
Collective agreements were mostly repetition of labour laws
Collective bargaining is mainly focused on wages
Specific collective agreements have been created to focus on vulnerable groups and focused issues: collective contracts are multi-layered and diverse
Collective contract on women workers
Collective contract on OSH
Collective contract on youngsters
Collective contract on rural migrant workers

6. Development of the System

7. A core mechanism for wage determination
Focus on income distribution and redistribution through wage negotiation, collective wage bargaining, fostering collective wage bargaining, nominal wage growth and wage payment guarantee mechanisms, safeguards workers’ rights to engage in and supervise wage distribution and ensure synchronized wage increases with regard to the growth of enterprises.

8. Branch collective bargaining is emerging
Given the fact that trade union cadres and workers’ representative in the private sector are bound by enterprises to practise collective bargaining, trade unions in China adopt “the up represents the below” approach, i.e. the higher level industrial or regional trade union representatives, on behalf of the corporate trade unions, bargain with the enterprises in question, including knitwear, timber, charcoal and taxi industries.

9. Vigorously Promote Branch Collective Bargaining

10. A key system to deal with multinationals
Nation-wide Organizing Campaign in foreign enterprises;
We are stepping up collective bargaining with “Top500” enterprises in China;
In Sept. 2008, all of Walmart’s 108 unionized companies in China signed collective contracts with the concerted efforts of Chinese trade unions at all levels and after consultations with Walmart’s headquarters in China.

11. Even stronger collective bargaining in a time of crisis
The collective bargaining can make a difference in tackling the international financial crisis. “Transform crisis into opportunity”
To address the negative impact of the crisis, ACFTU has launched a national “Joint Commitment Campaign”. We see it as a developed form of collective bargaining in a time of crisis to encourage companies to maintain wage levels, job security and social insurance while as unions, on behalf of the workers, we commit ourselves to helping enterprises to overcome the difficulties. And on the basis of the agreement, temporary wage moderation, flexible employment practices and working hours arrangements, and organized training could be put into practice.

12. Challenges ahead We still have a long way to go:
The overall level of development is unbalanced
“Representation” issues exist on both sides
(unions and enterprises)
Weakness in bargaining capacity
Inadequate collective bargaining

13. Countermeasures
Enhance the quality of bargaining and collective contracts based on improved signing rate and expanded coverage
Emphasize making the collective contract more targeted and effective while improving the system
Strengthen trade unions’ bargaining capacity and the qualifications of trade union cadres by policy guidance and professional training
Expand trade unions’ coverage and build on industrial trade unions so that they can contribute more to the system

14. Thank You!