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Chapter 16

Employment Relations in SomeAsia Pacific Countries

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CHINA

Economic reforms in the late 1970s

ER institutions restored (ACFTU in 1978)

1980s: 3 new systems - labour contract

- floating wage

- management engagement

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Tripartite System

National level

- Ministry of Labour

- Chinese Enterprise Directors Assn

- ACFTU (representing workers)

Similar arrangements at province, county

and city levels

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Role of Trade Unions

Under Trade Union Law

- protect rights and interests of workers

In SOEs, workers congresses are the main

bodies representing workers at the

enterprise level

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Labour Law

Law was introduced in 1995

17 employment regulations dealing with:- minimum wage, work hours, inspection,

compensation, safety, training etc

Workers may conclude collective contractwith enterprise on employment issues

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Dispute Settlement

Rules on Handling Enterprises Labour

Disputes

System includes procedures for:

- mediation

- arbitration - judicial settlement

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HONG KONG

Has autonomy under one country two

systems arrangement

- retain laws from British legal system

Employment relations characterized by

- non-intervention government policy

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Employment Ordinance

Deal with issues:

- employment contract

- payment of wages - rest days, holidays, annual leave

- sick pay, maternity leave and protection

- long service pay, severance pay

- job security

- union discrimination

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Dispute Settlement

Settled under Labour Tribunal Ordinance

- quick, inexpensive and informal to settle

claims arising from Individual contrracts

Minor Employment Adjudication Board deals

with minor claims less legalistic thanTribunal

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Trade Union Ordinance

Covers issues:

- trade union registration

- procedure for merger & acquisition- members rights and freedom

- picketing and other industrial action

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Labour Relations Ordinance

Prescribes procedure for third party

intervention in disputes e.g. conciliation

and arbitration

If dispute affects HK economy, livelihood of

people, creates public risk, Chief

Executive can declare a cooling-off period

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INDIA

Many labour laws at central and state levels

5 categories

a) Working conditionsb) Wages and monetary benefits

c) Industrial relations

d) Social securitye) Miscellaneous

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Trade Unions

Started after World War I

- e.g. All India Trade Union Congress

- At local, state and national levels

INTUC formed in 1947

- Influenced by Gandhian ideals of truth, non-

violence, purity of means and dignity of labour

- to counter communist influence of AITUC

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Trade Unions Act

Provides for registration of unions, but no

provision at national level for the

recognition of unions by employers

- Most unions are small, financially weak

and supported by political parties

- Many unions with one company, resulting

in rivalry and are ineffective

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Employer Organisations

3-tier structure

- Llocal associations

- Industrial associations- All-India federations

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Major National Organizations

A) All India Organization of IndustrialEmployers (AIEO)founded by Federation of India Chamber of Commerce

and Industry in New DelhiB) Employers Federation of India (EFI)

founded by Associated Chamber of Commerce inMumbai

C) Standing Conference of PublicEnterprises (SCOPE)set up by central public enterprises in New Delhi

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Council of Indian Employers

Loose federated umbrella organization

- formed by the 3 major national

associations- deals with government & international

organizations (eg ILO)

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Employer Organization - Role

Protect interests of members

Provide information on labour laws

Encourage harmony in employmentrelations system

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Attitude Towards Union

Traditional employers

- paternalistic, hostile towards unions

Companies with modern management

- Accept unions as partners in employment

relations system

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Role of Government

Enact employment laws to ensure

harmony between employers & unions

Provide legal and administrationmechanism for collective bargaining and

for settling disputes

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Industrial Dispute Act

Provides legal means (conciliation,

arbitration and adjudication) to settle

disputes

National Arbitration Board strengthens

system of voluntary arbitration

3-tier adjudication system: Labour Courts,

Industrial Tribunal and National Tribunals

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Collective Bargaining

Confrontation process as there is no legal

provision at the national level to recognise

unions

Process becomes difficult as there are

many unions within same company

Unions are weak and fragmented

Unequal strength results in hostility during

negotiation

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Union Recognition

No national law for union recognition

Legal provisions in some states

Methods to determine union representation:a) Code of discipline

b) Secret ballot

c) Check-off systemd) Membership verification

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Other Employment Laws

A) Employment Exchanges Act

B) Factories Act

C) Equal Remuneration ActD) Employees State Insurance Act

E) Payment of Gratuity Act

F) Payment of Bonus Act

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JAPAN

Employment relations:

- Life time employment

- seniority based system

Dismissal is seldom done because employer

must have good reasons

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Trade Union Act

Workers have right to form and join union

Union may negotiate contract with employer

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Enterprises Union

Common in Japan

Effectiveness depends on corporate

culture within the company There must be mutual interest and

company identity among employees

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Spring Struggle (Shunto)

Unique feature in Japanese employment

relations started in 1955

Annual wage increase drive conducted byunions from March to May

Sets pattern of pay and benefit increase

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Dispute Settlement

Under Labour Relations Adjustment Law,

unions and management should first settle

disputes between themselves

If settlement fails, they can ask for support

from Labour Commission or seek

arbitration

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New Employment Laws

Trade Union Act and Labour DisputeAdjustment Act were merged to becomeTrade Union and Labour Relations

Adjustment Act ban on third party invention was lifted

employers not obliged to pay wages

during strike Mediation is compulsory before any

industrial action is taken

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