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Scrutiny
  
No consensus
The new Chinese labour law
01/11/2007

After the recent outcry over slavery scandal in China’s Shanxi province, National People’s Congress (NPC) passed the pending labour law that promises more protection, equal pay & long-term job security. But then, most of the less skilled workers are not aware of any such labour law that aims to equip them with more job security, through making written contracts & non-fixed term agreements, a mandatory part of employment process. On the one hand, this labour law is largely seen as a landmark progress in Chinese legislation history whereas on the other hand, small businesses have to bear increasing labour costs. It was attraction of cheap labour which caused most multinationals to set up units in China, would now fear the new labour laws. Even many white-collars professionals are against this labour law as implementation of this law will ultimately reduce their compensation (as per equal-pay clause). According to US media, the American Chamber of Commerce is in the process of lobbying against the new law & is also envisaging to meet All-China Federation of Trade Unions (ACFTU) and the law drafters. So if tomorrow business starts drying up in China because of stringent labour laws would it eventually be in the interest of the labour? Time to ponder.

By:- B&E
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