Industry by industry, how are China’s workers faring in this difficult economic environment?
Read more...Workers protest furloughs by Shenzhen Yingguan Industrial to avoid severance
On April 8, 2024, Yingguan Industrial (Shenzhen) Co., Ltd., located in Shenzhen, Guangdong, issued a notice informing workers that it would halt production from April 10 to October 10, while wages would be paid according to labour law during the furlough. On the second day, Yingguan workers gathered in front of the factory to protest against the company’s use of furlough to avoid paying legally mandated severance.
Read more...Challenges and concerns surrounding China’s retirement age reform
The government’s plan to raise the retirement age was met with backlash from workers, especially blue-collar migrant workers. It is difficult for migrant workers to find jobs that pay for social security for 15 years–the prerequisite for getting a pension when retired. Workers are worried that the retirement age reform would make things even harder. There is a disparity in social security coverage and benefits between urban workers and migrant workers. Many migrant workers still have to work after the retirement age, with little or no social security. Precarious and informal employment across sectors is a significant reason and will likely continue with the growing gig economy.
Read more...Report release: Chain of Consequences–How Chinese workers pay for supply chain de-risking
On 26 June 2024, SOMO (Centre for Research on Multinational Corporations) and China Labour Bulletin published a report about Chinese workers’ struggles amid global supply chain shifts and the need for responsible business practices. As major brands relocate production from China due to economic and geopolitical factors, Chinese workers in the apparel and electronics sectors are experiencing significant hardships, including payment struggles and job losses. The relocation of factories has led to reduced orders, wage delays, and inadequate compensation for the affected workers. The report emphasises the need for global brands to consider the human rights impact of their sourcing decisions and prioritise the well-being of low-wage workers in their supply chains.
Read more...Dongguan factory Nordd Leather closes, workers owed social insurance and wages
As Nordd Leather factory closed down suddenly, workers gathered to demand their overdue wages and social insurance fees. Unions at various levels failed to intervene, even when workers had made complaints months ago. Ultimately, the landlord and the Tax Bureau took care of the payment. Leather brands’ cost-cutting strategies possibly suppressed workers’ conditions. Recent Milan court rulings highlight that leather brands should monitor suppliers’ labour conditions; otherwise, they may face legal penalties.
Read more...Due diligence investigation needed after auto parts supplier avoided paying the promised wages and contract gratuity to hundreds of hourly workers
In late March 2024, the auto parts supplier Chongqing Huguang saw a large number of hourly workers gathering outside the factory gate to protest against the factory’s failure to arrange work shifts, which meant that workers could not complete enough working hours to receive the gratuity. Factory security with helmets and restraining poles were seen confronting the workers on online videos.
China Labour Bulletin (CLB) found that Chongqing Huguang’s parent company is a supplier of auto OEMs including Volkswagen, Audi and Mercedes-Benz. CLB identified several possible labour violations, regarding its employment practices, excessive working hours, and union’s inaction. German companies in its downstream have a responsibility to conduct due diligence in accordance with the requirements of the German Supply Chain Act.
Read more...Garment workers’ unions must engage global brands on impacts of changing business strategies on workers’ rights
The global apparel industry’s contraction has led to widespread protests in China and Southeast Asia. In this article, China Labour Bulletin (CLB) illustrates workers’ collective efforts to defend their rights during the 2023 market downturn. CLB argues that international garment brands should be involved in monitoring suppliers’ labour practices across vast production networks. Workers and unions need to utilise new due diligence legislation and tools to coordinate and fight against a global challenge.
Read more...Auto workers bear the brunt of competition and EV transition in Chinese market, international just transition initiatives provide valuable lessons
In 2023, China Labour Bulletin (CLB) recorded a peak of collective actions in the auto industry since 2015. Intense competition and EV transition hit workers of various companies. Worker grievances include layoffs and lack of severance pay, overdue payments, reduced wages and increased workload. Just transition initiatives by German and US unions are worth learning.
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