Invest In China: Dealing With Labor Unions And The Communist Party
Labor Unions
If the employees request the establishment of a labor union, the employer must assent and offer assistance. Moreover, certain thresholds apply which require employers to hire a full-time employee labor representative (companies with at least 200 employees must hire one employee labor representative, with more hires necessary at higher thresholds). Joint Ventures and WFOEs must allocate an amount equal to at least two percent of the actually paid monthly wages of all the employees as trade union funds (this amount must be paid to the local labor bureau if the enterprise has not established a trade union). The trade union must use these funds in accordance with the trade union fund management measures issued by the All-China Federation of Trade Unions, of which the labor union is required to be a member.
Labor union representatives have the right to attend board meetings, although they do not
have voting rights, and they should be invited to attend board meetings if labor issues are discussed. The trade union performs a significant advisory function with respect to...
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