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Door opening to contacts in China

Published: 25 June 2008
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UNI global union has welcomed the latest understanding between the ITUC and the Chinese union body ACFTU in a thaw in relations that should accelerate activities in multinational companies in China.



As part of the union drive, European Works Councils are being pressed to question companies on their activities in Chinese subsidiaries and suppliers.



The thaw has been helped by the election of an ACFTU deputy member - after a three-year gap - to the workers group on the Governing Body of the International Labour Organisation at its recent annual meeting in Geneva.



After an exploratory UNI mission to Beijing in December 2004, the Chicago World Congress gave the green light for UNI contacts with Chinese workers, as well as support for organising projects in Hong Kong and Taiwan.




Flashback: UNI Graphical team meets Chinese unions in 2006
 UNI Graphical global union was the first UNI sector to send a delegation to China - visiting printing plants with multinational stakes in Beijing and Shanghai (including an RR Donnelley plant) and meeting Chinese unions in October 2006.



UNI Graphical drew up plans for follow up exchanges - which should now be able to go ahead after a lengthy period of introspection at the ACFTU.


Other UNI global unions like Commerce are expected to proceed with plans to visit the growing number of overseas multinationals (western as well as from Japan, Singapore, Hong Kong and Taiwan) that are fast expanding into China.



“Our long standing aim is to cooperate in organising the services multinationals in China and strengthen our global union alliances,” said UNI General Secretary Philip Jennings. “The aim must be to help Chinese workers to bargain for better conditions and to build union rights. We would also welcome the inclusion of Chinese trade unionists in activities in UNI-Asia Pacific.”



There has been a debate at the ITUC - which unites national trade union centres around the world - that resulted in majority support for engagement with a Chinese trade union movement that is not totally independent of the Communist Party in China.



Policy targets rather than diplomatic exchanges will drive the contacts, ITUC General Secretary Guy Ryder told a three-day seminar in Brussels on EWCs and China.



The targets include multinationals, union rights, collective bargaining and the growing role of Chinese companies in the rest of the world.



“We have a mutual understanding - we have come closer together,” said ITUC China coordinator Carlos Polenus who was involved in the quiet diplomacy to fast forward relations with Chinese unions and workers.



The Chinese government recently introduced a new contract labour law that should give greater pay and job security to workers there and greater transparency to the labour market - but it has not signed up to all the ILO’s core labour conventions.



The ACFTU launched a successful organising campaign in Wal-Mart after the US-based retail giant refused to obey a Chinese law providing for unions in all work places. But other multinationals have set up their own unions in China and Chambers of Commerce representing US and European businesses lobbied at various times to water down the new labour laws.


The Chinese economy has been growing at an average of 9.5% in an incredible 30-year transformation of its economy, Professor Sylvain Plasschaert told the conference on EWCs and China that was backed by the ITUC, ETUC and CEDAC with the support of the European Commission.

China has become the centre for the world’s manufacturing industries - with 60% of Chinese exports generated by foreign investment enterprises.


Multinationals account for 60% of china's exports


It is now also becoming a powerful centre for services multinationals - from IT and call centres and access to the fast growing base of Chinese consumers.



A widening income gap between the rural areas - suppliers of more than 100 million “migrant” workers for the new factories of coastal provinces - remains a key issue for the Chinese government.



A reserve labour force still remains. Professor Plasschaert told the conference that there are still 50 million workers under-employed in rural areas and there’s about 5% unemployment in urban areas.



EWC reps in Brussels were briefed on the use of the OECD guidelines to challenge multinationals who breach labour standards and discussed a greater sharing of information between unions and NGOs.




Carlos Polenus with recent Fair Play reports
 “If companies are investing in China it is extremely important that European Works Councils members start asking questions,” said Carlos Polenus. “There is still a huge supply of cheap labour and many companies don’t even comply with Chinese laws because inspection is poor. Chinese workers want better pay, fewer accidents, better health and safety - and they deserve that.”


With the Beijing Olympics fast approaching, unions have been stepping up their long running Fair Play campaign to ensure union rights and decent work for workers producing the lucrative merchandise that now helps finance major sporting events. On World Cup for instance generated 17,000 different merchandising items that brought in hundreds of millions of dollars.


The International Olympics Committee and other sporting groups are being pressed to build labour standards into their contracts with merchandising providers, said the ITUC’s Tim Noonan. “One aim of our campaign is to fix the responsibility on the sporting bodies,” he told the Brussels conference.


Tim Noonan, ITUC


Under-cover inspections - sponsored by global unions - revealed abuses in Chinese producers in 2007 and one contract was terminated.



In a recent report the unions have looked at the social responsibility of some of the big name sporting brand companies. “Some of these companies are more advanced and serious about corporate social responsibility than others,” said Tim. “There is a lot of money involved in these contracts and it’s on the back of the workers.”