CHINA COUNTRY REPORT
Based on the conference report
presented by Shek Ping Kwan
Hong Kong Christian
Industrial committee
AROUND 60-70 million workers are employed in China's five "special economic zones" (SEZs) and 14 "open cities." Foreign investors, two-thirds of whom are from Hong Kong, have been operating in these areas since Deng Xiao ping launched China ' s economic reforms in 1979.
China has attracted foreign investment through tax breaks and a plentiful supply of cheap labour. While China's official urban unemployment rate is 2.6%, 300 million "peasants" (from rural areas) are unemployed. Many unemployed from impoverished inland provinces migrate to the SEZs to find jobs as temporary workers.
Migrants from otherparts of China must obtain a border pass, work permit, and temporary resident pass to work in the SEZs. As is the case with most temporary workers, they are not covered by China's labour laws nor are they entitled to social benefits. They are also not included in official employment figures because they are officially categorised as peasants rather than workers.
China's working class can be categorised into two general categories: state enterprise workers, who are mostly from urban areas, and joint venture enterprise workers (located in S EZs and open cities) . State enterprise workers are a powerful force and are highly organised (93.04% belong to the All China Federation Trade Union -- ACFTU). But two thirds of the state enterprises are operating at a deficit. If they are privatised, the nations' organised workers will face widespread dislocation.
Meanwhile, few SEZ workers are unionised. In 1993, only 10% of joint venture workers belonged to the ACFTU. The union is gearing up to organise more SEZ workers from foreign-funded enter prises. But no matter how hard the ACFTU wants to promote unionisation and the protection of workers' rights, it must first provide autonomy to basic union units or else workers will be skeptical of participating.
Though gender inequality exists in both state enterprise factories and SEZ factories, women are especially exploited in the SEZs. Regulations are not en forced since the authorities seem to care more about economic growth than the workers. The government's disregard for the situation of the women workers was evident when the vice-president of the ACFTU recently said that women's and workers' rights are secondary to economic growth and the party.
Eighty percent of the SEZ workers are women, most are between the ages of 16-25. By the age of 25, women are usually refused work and required to return to their province of origin. Under China's residency laws, migrants cannot live in the special zones, even if they marry a local resident.
Most SEZ workers live in crowded dormitories provided by employers, with rent docked from their pay. In some cases, women are not allowed out of the buildings except to work.
Work-related injuries and deaths are a big problem in Shenzhen. Half of Shenzhen's factories are in violation of Chinese health and safety laws. An estimated 80% of SEZ workers suffer from occupational diseases.
Fires are common, especially in joint venture factories. Worker casualties are high because "3-in-1" factories (where workers' dormitories are attached to the warehouse and factory) are used even though they are already outlawed by the government.
To pre-empt wildcat strikes, the ACFTU is campaigning for the basic freedoms stipulated in the Chinese constitution but not provided to workers. Yet there is no real grassroots initiative or participation by SEZ workers in the ACFTU.
Though spontaneous labour actions are becoming more common, independent labour actions are not permitted. In 1993-94, workers tried to organise independent unions in Shenzhen factories but they were suppressed.
AT A GLANCE
SPECIAL ECONOMIC ZONES
Shenzhen
Zhuhai
Shantou
Xiamen
Hainan
400 special zones including 14 "open" cities, industrial zones, hinterland provincial capitals, Shanghai-Pudong District, and Fujian Investment Zone (for Taiwanese businesses).
Growthareas: Greater Mekong Subregion, Southem China Growth Triangle, and Tumen RiverArea.
A new measure on regulating the management of the zones will be published soon to standardiss the development of the zones.
(Source: South Chins Moming Post, 29 June 1995, Business p. 5 )
WAGES
China's first minimum wages went into effect on January 1995. It is supposed to apply to workers in the SEZs.
The official monthly minimum wage for Shenzhen is between US$38.70 and $46 In Zhuhai it is set at US$46.
(Source: China Labour Ministry)
UNEMPLOYMENT
2.6% (official urban unemployment rate)
POPULATION
1.17 billion
SEZ WORKERS (estimate)
30 million (in SEZs only)
60 million (in SEZs and open cities)
SEZ EMPLOYMENT
12% (oftotallabourforce)
UNIONISATION RATES IN FIES
(foreign invesbd enterprises)
12%(Shenzhen) (132,000)
(Source: China Labour Bulletin)
UNIONISATION OUTSIDE EPZS
66%
Notes:
- 1995 data unless spedfied othenvise
- Eco. Growth = real GNP growth rale (except China: GDP)
- PPP = purchasing power perity: takes into account price diflerences between countries to provide a more accurate pictune of nationàl wealth (e.g. Per Capite GDP)
- CPI = consumer pnce index: infla00n rab = % change in CPI
- GDP = gross domestk product: value of all goods and ~rvices produced in one year
- GNP = gross national product: GDP + payments from abroad from investments, labour and minus similar payments to foreigners.
- Unemployment rate = % of work Force which is unemployed
A FOCUSED GLIMPSE
A1995 interview of 300 workers by the Bagua Ling Industrial Area, Shenzhen, Communist Youth Organization:
- The area has more than 430 factories and 100,000 workers.
- 45% work44 hours per week; the restwork up to 80 hours a week.
- The average monthly income is RMB 481 .8 (US$58.3).
- 35% receive no welfare or protection.
- A few factories give workers an additional bonus of RMB 10-30 (US$1.2 - 3.6).
- 11.8% complained of illegal withhold ing of their identity card by manage ment.
- 49% felt dissatisfied with their work ing conditions.
- 49% complained about the absence of a canteen.
(Source: ^Change, "Hong Kong Christian Industrial
Committee, June 1995)
 |
Home page |