A draft regulation negotiated by the Chongqing Federation of Trade Unions will allow employees in the southwestern metropolis to ask for wage increases when their companies report revenue growth. [File Photo]

A draft regulation negotiated by the Chongqing Federation of Trade Unions will allow employees in the southwestern metropolis to ask for wage increases when their companies report revenue growth, the Chongqing Morning Post reported Wednesday.

The proposed regulation, which is now open for public comment, would empower trade unions to represent employees in negotiations with employers for wage increase.

Companies under the draft policy would be required to set up labor unions before negotiations over salary increases.

Employers would also be able to negotiate with employees to cut pay when facing financial difficulties, through they would not be allowed to pay less than the country’s minimum wage.

China's business press carried the story above on Wednesday.