American Corporations Worse Than China On Labor Rights

Harold Meyerson, in The American Prospect:

Beyond the Starbucks of Shanghai, the China of workers and peasants is a sea of unrest, roiled by thousands of strikes and protests that the regime routinely represses. Cognizant that they need to do something to quell the causes of unrest, some of China's rulers have entertained modest changes to the country's labor law. The legislation wouldn't allow workers to form independent trade unions or grant them the right to strike -- this is, after all, a communist regime. It would, however, require employers to provide employees, either individually or collectively, with written contracts. It would allow employees to change jobs within their industries or get jobs in related industries in other regions; employers have hitherto been able to thwart this by invoking statutes on proprietary information. It would also require that companies bargain with worker representatives over health and safety conditions....

As documented by Global Labor Strategies, a U.S.-based nonprofit organization headed by longtime labor activists, the American Chamber of Commerce in Shanghai and the U.S.-China Business Council embarked on a major campaign to kill these tepid reforms. Last April, one month after the legislation was first floated, the chamber sent a 42-page document to the Chinese government on behalf of its 1,300 members -- including General Electric, Microsoft, Dell, Ford, and dozens of other household brand names -- objecting to these minimal increases in worker power. In its public comments on the proposed law, GE declared that it strongly preferred "consultation" with workers to "securing worker representative approval" on a range of its labor practices.

Based on a second draft of the law, completed in December, it looks like American businesses have substantially prevailed. Key provisions were weakened; if an employer elects not to issue written contracts, workers are guaranteed only the wages of similar employees -- with the employer apparently free to define who, exactly, is similar. Business is relieved: Facing "increased pressure to allow the establishment of unions in companies," Andreas Lauff, a Hong Kong-based corporate attorney, wrote in the January 30 Financial Times, "comments from the business community appear to have had an impact." The new draft "scaled back protections for employees and sharply curtailed the role of unions."