| Publication |
2009.
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| Summary/Abstract |
China's new labour law is a significant reform that offers workers greater employment security and income protection. It is a product of both unprecedented industrial unrest as well as the Chinese government's decision to move its economy to a higher-wage, higher-technology future. The law has energised many workers, who are now using the courts and the Communist Party-controlled trade unions to press their claims. But the law has also evoked a sharp reaction from many employers, who have sought to circumvent its purposes in two ways. First, they coerce many employees to resign their posts-thereby forfeiting important seniority claims-and then rehire them as new employees. Second, many labour-intensive manufacturers have begun to shutter their factories and shift production to even lower-wage regions of China or Southeast Asia. Although long an instrument of labour control and intimidation, the All-China Federation of Trade Unions has sought to use the new labour law to win for itself a measure of institutional and ideological legitimacy.
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