Chinese labor relations in Ghana
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Chinese Labor Relations in Ghana: Isolation, Tension and Compromise
Jinghao Lu22nd August, 2012
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Categorizing the Chinese in Ghana
State-owned enterprise (SOEs) staffsPrivately-owned company owners and staffsIndependent Traders
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Chinese State-owned Enterprises (SOEs)
About 20 out of 500 registered companies at the Chinese embassy are SOEs
Mostly large-scale business in infrastructure, mining, manufacturing, energy generation, telecom and fishery
Relatively high percentage of Chinese staffsChinese Staffs:
Short-term stay, except for the senior executivesYoung in age, mostlyMonthly income between US$1,500 and US$2,500,
excluding stipend
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Chinese Privately-owned, Small- and Medium-Enterprises(SMEs) Locally registeredEntrepreneurs from Hong Kong, Taiwan and
lately Mainland ChinaIn 2011, 41 manufacturing companies, 25
Chinese restaurants, 8 clinics, 7 fishing companies and 59 trading companies (according to Chinese embassy)
Generally law-abiding, localized and experienced
…with a long-term plan
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Independent Traders
Not included in the discussion
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Formation of Isolation
Level of isolation varies, depending on nature of business and prospective length of stay
Concerning safety, competition and salaryReinforcement of isolating living
arrangement from the companyLanguage barrier from both sides
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From Isolation to Perception of Local Labor
Rudimental belief in life meaning and work value
Difference in education, skills and learning ability
Concept of labor union
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From Perception to Treating Local LaborPerception Practice
“Productivity is essential; but some Ghanaians do not understand this”
• Discrimination of hiring• Low wage and welfare (pay as what one
deserves)• Dislike / disband labor union
“Ghanaians are not loyal”
• Impatience of training local workers• Using Chinese staffs whenever possible,
including employing overstayed Chinese workers
Difference language and management culture
• Obstacle for Ghanaian to get promoted
“Low-skilled workers should be obedient; but Ghanaians are not”
• Maintaining temporary employment for low-skilled jobs
• Immediate dismissal• Disciplinary measures applied on Ghanaian
workers
“Ghanaian government workers are corrupt rent-seekers”
• For all the violations above, believing “in the end money can solve the problems”
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Ghanaian Workers’ Dilemma
Not many alternatives to Chinese employersGhana Trade Union Congress can only speak
on behave of labor unions; but many Chinese SMEs forbid labor unions to be formed
Sabotage is a way to release angerMistrust widens
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Trend of Improvement: Localization
Chinese SOEs and multinationals are willing to improve labor relationsTrusted Ghanaian workers are good mediators
of labor tensionOrganization of events to allow more
interactions
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Trend of Improvement: Ghana Trade Union Congress (TUC)Improved knowledge about SOEs and their top-down
management systemsParticipated in think-tank forum and visited Chinese government
leadersCreatively inform Chinese employers about labor laws
Maintain relationship with the Chinese EmbassyLecture for Chinese SOE managers as well as Ghanaian workersTranslate Ghanaian labor laws into MandarinUse the Ghanaian lawyers employed by Chinese companies to
communicate Rewarded the Chinese companies which made positive changes
with good publicity in the mediaCooperated with the Ghanaian authorities that supervise various
projects undertaken by the ChineseAllowed Chinese companies to learn slowly
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Role of Chinese Business Leaders
Chinese business associations such as Ghana China Chamber of Commerce (GCCC) play an important rolePublishing annual Ghana Chinese Business
DirectoryTranslating Ghana news into Chinese
Increasing influence of GCCC
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Road AheadAccording to TUC, between 2009 and 2011, Chinese labor
practice in Ghana generally improvedThis trend will continue thanks to organizations such as
TUC and GCCCChinese companies are learning about western business
model and labor practice in order to localizeThrough Forum on China-Africa Cooperation (FOCAC),
Ghana’s government and civil society increased their knowledge on Chinese business culture
Enlarging Ghana’s talent pool is importantConfucius Institute is about to be established in GhanaGCCC’s membership is growingGhanaian media can encourage Chinese labor practice
improvement