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Love of labor need not be at expense of capital

By Wang Linqing (China Daily)
Updated: 2009-04-27 07:42

Compared with other cases, the number of labor disputes - across a range of fields with extensive social implications -- has been growing fast in China in the past year. Due to their sensitive nature, labor disputes have also drawn much attention in society.

According to statistics, the country's courts at various levels have received a total of 98,568 labor cases in the first quarter alone -- 59.14 percent higher than in the same period a year earlier. Last year, a total of 286,221 labor cases were filed and settled - up 93.93 percent from the previous year.

A variety of factors have contributed to the increase in labor disputes last year. Under the influence of the global financial crisis, China's enterprises, export-bound ones in particular, have encountered extremely harsh conditions, with loss-making enterprises and industries on the rise. As a result, the number of ill-performing enterprises that have become bankrupt has increased, some of them failing or unable to pay employees what they deserve. This non-payment of dues to employees is a key factor pushing up the number of labor disputes nationwide.

Besides, with the implementation of the Labor Contract Law and the Law on Mediation and Arbitration of Labor Disputes, the rights and interests of labor have received growing attention from various social circles. A higher awareness of the law among ordinary workers undoubtedly has helped them turn to legal means for resolving labor disputes with their bosses. In addition, low litigation cost has also contributed to some extent to the increased number of labor cases. According to the Measures on Payment of Litigation Costs, effective from April 1, 2007, only 10 yuan ($1.46) is needed to file a labor case in court.

Given that the number of labor cases is expected to continue rising in the period ahead due to the economic slowdown, people's courts should appropriately deal with the issues in their judicial settlement.

Deserved attention should be paid to protecting employing units and their subsistence and development while trying to safeguard the legitimate rights and interest of laborers in accordance with laws. Handling employer-employee relations in a befitting manner is not only a cardinal principle of the country's Labor Contract Law, but also critical for advancing economic construction and the improving of people's livelihood. It is known that the ultimate goal of the Labor Contract Law is to build and develop a harmonious and stable relationship between employers and employees, and not just protect the latter's legitimate interests.

In our market economy, labor relations, no matter within enterprises of public ownership or non-public ownership, always seek to reconcile contradictions. In the present situation both labor and capital share a high degree of similarity in interests although, at times, there are divergences between them. This suggests that a win-win principle, rather than the opposite, should be at the center of the process in the treatment of labor disputes.

Also, a harmonious and stable labor relationship should be sustained. In the process of solving labor disputes, judicial organs should not only take full account of employers' move to lower labor costs for surviving the financial crisis, but also pay enough attention to the employees' demand for reasonable treatment and compensation.

In the context of an economic slowdown at home and abroad, enterprises should be encouraged not to cut employees nor lower payments. At the same time, efforts should be made to help employees recognise some reasonable measures taken by struggling employers. Moreover, active efforts should be made to encourage and support employers and employees to reach an acceptable-to-all agreement, such as shortening work time for employees and arranging training on temporary leave by rotation and negotiated payment.

In addition to providing final and authoritative ruling on labor cases, judicial organs should play a mediatory role in settlement of disputes. Litigation mediation, which constitutes an important component of the country's judicial proceedings, has long been an important tool used by courts in the exercise of judicial power. Such a mediation-first principle should be insisted upon in the handling of labor disputes in any effort to strike a balance between the concerns of the two parties in a conciliatory manner. At the same time, judicial organs should always bear in mind that mediation should be fair, simple and practicable.

Upholding judicial independence in rulings is the ultimate goal of courts at various levels. But, at the same time, they should give the long-cherished people's mediation system full play in the process. In solving labor disputes, judicial organs should conduct adequate inquiries with relevant government departments; and, labor unions, residents or villagers' committees, civil mediators, and people's jurors should be involved in the process to provide a mutually beneficial formula acceptable to parties of both labor and capital.

A reasonable and equitable dispute settlement system will undoubtedly help protect the rights and interests of both employees and employers, and build in the minds of the public a concept that the country's judicial system is for the people.

The author is an associate professor with Renmin University of China.

(China Daily 04/27/2009 page4)