I run a foreign-invested enterprise (FIE) and my employees have formed a labour union. I know they're allowed to do that, but I'm worried about what they can do next. Are they allowed to organise strikes, or ask me for money? Do I need to negotiate with them on planned pay adjustments?

How should I deal with a labour union?

The international perspective

The issue of unionisation is very topical in China at the moment. This is largely due to the recent campaign by the All China Federation of Trade Unions (ACFTU) to force all foreign invested entities to unionise their workforces. It is important to understand that there is only one union in China, the ACFTU, with all local and regional unions falling under its umbrella.