No longer straining to be heard

After being delayed for two years due to the economic crisis, China has resumed efforts to increase collective bargaining practices and unionisation. This year, two national measures have been released that put pressure on private companies to negotiate collective contracts and unionise their employees. Additionally, regional measures are under discussion that could significantly increase labour union's ability to negotiate for higher wages. These reforms occur amidst a backdrop of labour disputes that garnered headlines throughout the summer, and form part of a broader effort by the Chinese government to curtail growing income inequality.

Businesses of all sizes may be impacted, and should be ready to face both a workforce with increasing expectations towards their working conditions and increased legislative pressure to unionise and institute collective contracts. For some, acquiescing to this pressure now could mean an opportunity to manage the process and influence the form the organisation of labour takes. Understanding the new rules and the context of these reforms, and knowing how it can impact business operations, are key issues for any company operating in China.