Multinationals Accused of Hypocrisy over China Labour Law Reform
For immediate release: October 26, 2006
Multinationals Accused of Hypocrisy over China Labour Law Reform
US and European multinationals have been accused of double standards for adopting codes of conduct requiring their suppliers behave ethically on the one hand, while on the other lobbying against China’s proposed new labour laws which, if implemented, would greatly clean up the country’s supply chain.
The Brussels-based International Textile, Garment and Leather Workers’ Federation (ITGLWF) has written to leading US and European retailers and merchandisers, including Wal-Mart, Carrefour, Tesco, Nike, the Walt Disney Co, Adidas, Sara Lee and DuPont, asking them to distance themselves from the position of their industry associations and to publicly support China’s proposed new labour laws
Says ITGLWF General Secretary Neil Kearney: “China is currently debating a reform of its labour laws which aims to tackle the widening income gap and the threat of social unrest in the country’s rapidly growing economy.
“The worst off in China’s export sector have been migrant workers, most of them exiles from the poorest provinces who travel far from home to live in cramped company dormitories while working long hours under poor conditions.
“While the draft legislation falls short of international standards in that it does not allow workers to form independent trade unions or give them the right to strike, it does contain provisions that would significantly improve China’s low wages and poor working conditions.
“The new laws would strengthen safety and workplace inspections, force employers to consult with workers’ representatives over significant job cuts, tighten the enforcement of minimum wages and provide regulations regarding the payment of severance. They may also cut the maximum working week and impose higher pay rates for overtime.
“However, industry associations such as the American Chamber of Commerce in Shanghai, the US-China Business Council and the European Union Chamber of Commerce in China are actively lobbying against the legislation on behalf of the hundreds of corporations they represent.
“These groups claim that the new legislation ‘over-regulates’ the employment relationship and will push up the cost of doing business in China. They have threatened that foreign corporations will pull out of China if it is passed”.
Concludes Mr. Kearney: “Socially responsible corporations should be trying to help to raise the standards of workers around the world. They should not be trying to prevent governments from adopting laws to protect their workers”.
