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Shanghai: China is experiencing a surge of labour unrest, as manufacturers are hit with slowing demand for exports to Europe and the US.
The unrest is also attributed to a labour force in China that's become more aware of workers' rights.
Last week, 6,000 workers went on strike at an electronics plant in Shanghai, demanding higher severance pay after the factory announced its move to Suzhou.
Last month, Motorola employees in Beijing and Nanjing protested against a decision to layoff workers.
Last year, hundreds of striking workers at a Singapore-owned electronics plant opposed a move by their company, Hi-P, to relocate its factory out of Shanghai.
Then there are truck drivers, unhappy about having to pay higher oil prices and receiving low wages.
And workers who threatened to kill themselves over poor working conditions at Foxconn, the company that assembles products for Apple.
Lawyers explained that given the Chinese government's emphasis on social security, mass strikes especially those that have made it to the media will get more attention.
If the case goes to arbitration, judges will also be more cautious in dealing with the case, giving it some kind of advantage.
Labour rights experts said China's new generation of migrant workers are better educated and have more access to information through the internet.
They are also less likely to tolerate employer abuse.
Shanghai Veritas Law Corporation's managing partner, He Lijuan, said: "There is a lot of contention when it comes to the amount of severance pay. For the employee, he will try to maximise this compensation amount. But the law in China is not too clear and detailed when it comes to labour compensation. Regarding the amount to be paid, sometimes even professionals, including lawyers and arbitrators, may have varied opinions."
Lawyers said companies need to take into account the total cost of compensation before deciding whether to relocate.
In some cases, compensation could exceed cost savings from the move.
Some companies get around the problem by hiring workers through labour outsourcing services.
It means the companies do not sign contracts directly with workers.
But it also leave employees at huge disadvantage when it comes to compensation.
Allstart Law Firm's dean, Sam Wei, said: "The company only has to end its contract with the employment agency so its cost of terminating workers is very low. For the employment agency it's also simple. It will give you a job when there is one (and) when there isn't, it will just pay you the minimum wage stipulated in Shanghai."
Lawyers are calling for labour outsourcing rules to be changed in order to better protect lower-paid workers.
- CNA/ck
The unrest is also attributed to a labour force in China that's become more aware of workers' rights.
Last week, 6,000 workers went on strike at an electronics plant in Shanghai, demanding higher severance pay after the factory announced its move to Suzhou.
Last month, Motorola employees in Beijing and Nanjing protested against a decision to layoff workers.
Last year, hundreds of striking workers at a Singapore-owned electronics plant opposed a move by their company, Hi-P, to relocate its factory out of Shanghai.
Then there are truck drivers, unhappy about having to pay higher oil prices and receiving low wages.
And workers who threatened to kill themselves over poor working conditions at Foxconn, the company that assembles products for Apple.
Lawyers explained that given the Chinese government's emphasis on social security, mass strikes especially those that have made it to the media will get more attention.
If the case goes to arbitration, judges will also be more cautious in dealing with the case, giving it some kind of advantage.
Labour rights experts said China's new generation of migrant workers are better educated and have more access to information through the internet.
They are also less likely to tolerate employer abuse.
Shanghai Veritas Law Corporation's managing partner, He Lijuan, said: "There is a lot of contention when it comes to the amount of severance pay. For the employee, he will try to maximise this compensation amount. But the law in China is not too clear and detailed when it comes to labour compensation. Regarding the amount to be paid, sometimes even professionals, including lawyers and arbitrators, may have varied opinions."
Lawyers said companies need to take into account the total cost of compensation before deciding whether to relocate.
In some cases, compensation could exceed cost savings from the move.
Some companies get around the problem by hiring workers through labour outsourcing services.
It means the companies do not sign contracts directly with workers.
But it also leave employees at huge disadvantage when it comes to compensation.
Allstart Law Firm's dean, Sam Wei, said: "The company only has to end its contract with the employment agency so its cost of terminating workers is very low. For the employment agency it's also simple. It will give you a job when there is one (and) when there isn't, it will just pay you the minimum wage stipulated in Shanghai."
Lawyers are calling for labour outsourcing rules to be changed in order to better protect lower-paid workers.
- CNA/ck
