Collective contracts -- agreements between employers and employees concerning labor issues -- currently affect nearly 100 million workers in China. Roughly 80,000 sectoral/industrial contracts are in place for 33 million workers, while 61.7 million others are parties to contracts with their individual employers.

The Ministry of Labor and Social Security has approved revisions to the collective contract regulation and the new version will go into effect on International Labor Day, May 1, this year. The revised regulation pays special attention to women and young workers, and provides guidance concerning career skills training, promotion and disciplinary action, and layoffs.

For the first time, women's issues such as maternity leave are addressed and specific rules provided. Minimum age requirements for employment and registration requirements have been set. Enterprise downsizing and layoffs are governed by clauses that detail procedures and required compensation.

The regulation also spells out the procedures and parameters of collective discussion, as well as responsibilities of representatives. Moreover, it states that both parties to the collective discussion are equal in status for purposes of negotiation.

Says an official from the ministry, "Negotiation is the soul of the contract. It can utilize the power of the group to guarantee an individual employee's legal rights, avoiding arbitrary decisions by the boss. The new rules are to govern group negotiation and the enforcement of the collective contract, ensuring the legal rights of both parties."

(China.org.cn by Wang Ruyue April 12, 2004)