Shanghai Municipality, Collective Contracts Regulations

Main Contents: According to the Regulations, the number of representatives for collective bargaining from an enterprise may not be more than that of representatives for collective bargaining from the staff and workers (Article 6). When an enterprise formulates, amends or decides on the following rules and regulations or material matters that have a direct bearing on the immediate interests of staff and workers, the same shall be determined after collective bargaining with its staff and workers:

(1) labour compensation;
(2) working hours;
(3) rest and leave;
(4) work safety and hygiene;
(5) insurance and benefits;
(6) employee training;
(7) work discipline; and
(8) labour quota management.

The enterprise shall conduct collective bargaining with its staff and workers on the wage level and wage adjustment mechanism. The staff and workers may request collective bargaining with the enterprise on matters involving their interests (Article 12).

Where either party to collective bargaining proposes for such bargaining on any of the following matters to the other party, the latter may not reject or delay such proposal:

(1) the enterprise requires a personnel cutback involving at least 20 persons or a personnel cutback involving less than 20 persons but accounting for at least 10% of the enterprise's workforce;

(2) cessation of work and complaint to the government in groups as a result of labour disputes; or (3) latent dangers for major accidents or occupational hazards are discovered in the course of production (Article 13).

In the case of enterprises that have already established a labour union, the labour union shall represent the staff and workers to propose collective bargaining to the enterprise. Where collective bargaining is proposed by the enterprise, it shall be proposed to the labour union of the enterprise. In the case of enterprises that have not yet established a labour union, the labour union at an upper level shall advise the staff and workers to appoint representatives to propose collective bargaining to the enterprise. Where collective bargaining is proposed by the enterprise, it may be proposed to its staff and workers directly or to the labour union at an upper level (Article 14). The labour unions in industries such as the construction and catering service industries within regions below the county level may select representatives for collective bargaining with the enterprise, and conclude industrial or regional collective contracts (Article 24).

Related Legislation: PRC Labour Law, Jul 5 1994, CLP 1994 No.7 p.21; PRC Employment Contract Law, Jun 29 2007, CLP 2007 No.6 p.30; and PRC Labour Union Law (Revised), October 27 2001, CLP 2001 No.9 p.6