employee relations - employment relations in some asia pacific countries
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Chapter 16
Employment Relations in SomeAsia Pacific Countries
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CHINA
Economic reforms in the late 1970s
ER institutions restored (ACFTU in 1978)
1980s: 3 new systems - labour contract
- floating wage
- management engagement
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Tripartite System
National level
- Ministry of Labour
- Chinese Enterprise Directors Assn
- ACFTU (representing workers)
Similar arrangements at province, county
and city levels
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Role of Trade Unions
Under Trade Union Law
- protect rights and interests of workers
In SOEs, workers congresses are the main
bodies representing workers at the
enterprise level
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Labour Law
Law was introduced in 1995
17 employment regulations dealing with:- minimum wage, work hours, inspection,
compensation, safety, training etc
Workers may conclude collective contractwith enterprise on employment issues
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Dispute Settlement
Rules on Handling Enterprises Labour
Disputes
System includes procedures for:
- mediation
- arbitration - judicial settlement
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HONG KONG
Has autonomy under one country two
systems arrangement
- retain laws from British legal system
Employment relations characterized by
- non-intervention government policy
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Employment Ordinance
Deal with issues:
- employment contract
- payment of wages - rest days, holidays, annual leave
- sick pay, maternity leave and protection
- long service pay, severance pay
- job security
- union discrimination
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Dispute Settlement
Settled under Labour Tribunal Ordinance
- quick, inexpensive and informal to settle
claims arising from Individual contrracts
Minor Employment Adjudication Board deals
with minor claims less legalistic thanTribunal
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Trade Union Ordinance
Covers issues:
- trade union registration
- procedure for merger & acquisition- members rights and freedom
- picketing and other industrial action
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Labour Relations Ordinance
Prescribes procedure for third party
intervention in disputes e.g. conciliation
and arbitration
If dispute affects HK economy, livelihood of
people, creates public risk, Chief
Executive can declare a cooling-off period
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INDIA
Many labour laws at central and state levels
5 categories
a) Working conditionsb) Wages and monetary benefits
c) Industrial relations
d) Social securitye) Miscellaneous
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Trade Unions
Started after World War I
- e.g. All India Trade Union Congress
- At local, state and national levels
INTUC formed in 1947
- Influenced by Gandhian ideals of truth, non-
violence, purity of means and dignity of labour
- to counter communist influence of AITUC
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Trade Unions Act
Provides for registration of unions, but no
provision at national level for the
recognition of unions by employers
- Most unions are small, financially weak
and supported by political parties
- Many unions with one company, resulting
in rivalry and are ineffective
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Employer Organisations
3-tier structure
- Llocal associations
- Industrial associations- All-India federations
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Major National Organizations
A) All India Organization of IndustrialEmployers (AIEO)founded by Federation of India Chamber of Commerce
and Industry in New DelhiB) Employers Federation of India (EFI)
founded by Associated Chamber of Commerce inMumbai
C) Standing Conference of PublicEnterprises (SCOPE)set up by central public enterprises in New Delhi
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Council of Indian Employers
Loose federated umbrella organization
- formed by the 3 major national
associations- deals with government & international
organizations (eg ILO)
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Employer Organization - Role
Protect interests of members
Provide information on labour laws
Encourage harmony in employmentrelations system
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Attitude Towards Union
Traditional employers
- paternalistic, hostile towards unions
Companies with modern management
- Accept unions as partners in employment
relations system
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Role of Government
Enact employment laws to ensure
harmony between employers & unions
Provide legal and administrationmechanism for collective bargaining and
for settling disputes
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Industrial Dispute Act
Provides legal means (conciliation,
arbitration and adjudication) to settle
disputes
National Arbitration Board strengthens
system of voluntary arbitration
3-tier adjudication system: Labour Courts,
Industrial Tribunal and National Tribunals
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Collective Bargaining
Confrontation process as there is no legal
provision at the national level to recognise
unions
Process becomes difficult as there are
many unions within same company
Unions are weak and fragmented
Unequal strength results in hostility during
negotiation
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Union Recognition
No national law for union recognition
Legal provisions in some states
Methods to determine union representation:a) Code of discipline
b) Secret ballot
c) Check-off systemd) Membership verification
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Other Employment Laws
A) Employment Exchanges Act
B) Factories Act
C) Equal Remuneration ActD) Employees State Insurance Act
E) Payment of Gratuity Act
F) Payment of Bonus Act
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JAPAN
Employment relations:
- Life time employment
- seniority based system
Dismissal is seldom done because employer
must have good reasons
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Trade Union Act
Workers have right to form and join union
Union may negotiate contract with employer
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Enterprises Union
Common in Japan
Effectiveness depends on corporate
culture within the company There must be mutual interest and
company identity among employees
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Spring Struggle (Shunto)
Unique feature in Japanese employment
relations started in 1955
Annual wage increase drive conducted byunions from March to May
Sets pattern of pay and benefit increase
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Dispute Settlement
Under Labour Relations Adjustment Law,
unions and management should first settle
disputes between themselves
If settlement fails, they can ask for support
from Labour Commission or seek
arbitration
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New Employment Laws
Trade Union Act and Labour DisputeAdjustment Act were merged to becomeTrade Union and Labour Relations
Adjustment Act ban on third party invention was lifted
employers not obliged to pay wages
during strike Mediation is compulsory before any
industrial action is taken
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