How to deal with a PRC labour union

October 15, 2009 | BY

clpstaff &clp articles &

Employees of foreign-invested enterprises in China may decide to form a labour union. Companies may worry about the power of the union, and any obligations to negotiate or fund it

I run a foreign-invested enterprise (FIE) and my employees have formed a labour union. I know they're allowed to do that, but I'm worried about what they can do next. Are they allowed to organise strikes, or ask me for money? Do I need to negotiate with them on planned pay adjustments? How should I deal with a labour union?

The international perspective
The issue of unionisation is very topical in China at the moment. This is largely due to the recent campaign by the All China Federation of Trade Unions (ACFTU) to force all foreign invested entities to unionise their workforces ...

The domestic perspective
Employees have a right to establish a trade union, but approval must be obtained beforehand from the higher-level supervisory trade union in order for it to exist legally under the law. In its interactions with the union, an employer must ensure that it strictly adheres to the relevant provisions of PRC law ...

The HR perspective
Are they allowed to organise strikes? No. According to the Constitution of the Chinese Trade Unions and the Trade Unions Law, the basic duty of Chinese trade unions is to protect the legitimate rights and interests of workers ...

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