Life of Guangzhou - Labor Rules to Benefit Workers

The city government has drafted a new labor regulation to smooth out employment relations in the special economic zone (SEZ) following a number of work-related deaths earlier in the year.

The draft regulation, which is scheduled to be reviewed this month at a meeting of the Standing Committee of the Municipal People’s Congress, stipulates that group salary negotiations should be conducted at least once a year.

Fu Lunbo, one of the law’s chief proponents, said the law will establish a mechanism for negotiating periodic pay rises to minimize labor disputes.

More than 10 workers jumped to their deaths from their dormitory buildings in the Longhua complex of Foxconn, the world’s largest consumer electronics maker and contractor of Apple’s iPhone and iPad.

Although Shenzhen has maintained double-digit growth for years, the salaries of its workers have changed little. Some workers have not seen a pay rise in 10 years.

Qiu Honghe, from northeast China’s Heilongjiang Province and currently working in a Bao’an factory, said he could only afford to return to his hometown once every four years.

“I receive 1,400 yuan (US$206) per month. A round-trip train ticket from Shenzhen to my hometown is 1,600 yuan. It would be a luxury for me to go home often,” Qiu said.

In 2009, Shenzhen’s total output reached 820 billion yuan, meaning per capita GDP hit 93,000 yuan.

“Without an institutional guarantee to secure the interests of workers, the goal of common prosperity cannot be realized,” said Professor Yue Jinglun, from Guangzhou-based Zhongshan University.

“After achieving great economic results, the special economic zone of Shenzhen is now creating a pilot labor dispute settlement mechanism. It will help achieve the goal of common prosperity,” Yue said.

[More Guangdong and Pan PRD News]