Delays ahead: Why new labour rules raise stress levels
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clpstaff &clp articlesNew Rules on democratic management are part of the government's labour initiative. They build on economic policy, local regulations and unionisation plans, but without a relevant body to enforce against foreign invested enterprises, their impact is uncertain
On February 13 2012, six governmental and semi-governmental bodies jointly promulgated the Rules on Democratic Management of Enterprises (企业民主管理规定), although the full text was not available to the public until early April. It is unclear why the final text was delayed for more than a month, but such delays are normal when several promulgators jointly release rules and regulations.
The Rules require both state-owned and non-state-owned enterprises to establish a democratic management institution in the form of an employee representative congress (ERC), implement disclosure of enterprise affairs and promote democratic management. They also ask enterprises to respect and safeguard employees' democratic rights of knowledge, participation, expression and supervision.
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