(Sunnyvale, CA) – The Chinese Government and the All-China Federal Trade Unions (ACFTU)are escalating efforts to promote collective wage bargaining amongst corporations, especially multinationals operating in the country.
China aims to rope in 80% of its enterprises with labor unions in what it terms as the ‘Rainbow Plan’, which is a massive effort to institute collective wage bargaining practices in the country by 2013. For smaller companies without labor unions, the collective bargaining will be in the form of regional or industry-specified collective contracts.
First announced in 2010, efforts to promote the plan have gained steam recently in view of increasing labor disputes in the country. The current labor law gives a brief outline for collective bargaining but it is difficult to enforce in practice due to bureaucratic hassles.
In a recent case Swedish firm Ikea agreed to higher monthly wages and pay hikes linked to company’s yearly turnover for employees under the collective bargaining agreement.
Please call/email for more details.
Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.
About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at www.nair-co.com