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Chinese employers note boost in role of unions:

This article was originally published in Clinica

Executive Summary

Employee trade unions in China have secured a stronger role in industrial affairs under the updated Labor Contract Law, which is due to come into force on January 1 2008. Employee safety is also more prominent in the new law, which will affect the burgeoning US$4-7bn medtech industry, alongside other industries. As predicted in Clinica (Nos 1202, p 11 & 1233, p 13), the new law makes consultation between employers and trade unions mandatory in a number of areas, such as lay-offs, wages, working hours and other welfare issues. Written contracts for full-time staff are compulsory, and severance pay conditions are improved. Rules to implement the new law will be issued by the labour and social security ministry and relevant local governments over the next few months.

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