005) and lead to a revised form of state paternalism. In an effort to please workers needs and to prevent confrontational labor issues its new role may be to appease discontent workers (Chan, 2000). Of course this assumption might conflict with workers limited trust in trade unions itself (see section 4.4). Union activity has been controversial and it might be questionable if workers interests are truly being represented. The government, limiting the possibilities of union officials, must support any changes. But changes in the Employment Contract Law and apparent strengthening of union activity might be first steps in helping workers assume their legal rights which have and continue to be violated in many cases; developments underlined by increasing numbers in official labor disputes, keeping in mind that these might be dwarfed by actual violations.its current stage Chinese labor unions are to take on a role to protect workers legitimate rights outlined in the country s labor laws and to enable workers to communicate grievances in their employer relationship. Perhaps in response to increasing worker-employee tensions the government has taken first steps to protect workers from exploitation, poor working conditions, and uncertain labor relations. These developments in increased labor protection are new and might conflict with the government s current economic policies and chosen, yet debatable, strategy for continuous growth and job creation (see section 3). On paper workers are now given some leverage in the unequal power relation between workers and employers. But Chinese trade unions traditionally, have had a collaborating role with the communist party as well as management and it might seem unlikely that they will strongly oppose the state bureaucracy. For the long-run development they need to improve their ability to represent workers interests and change their organizational structure (Ge, 2007).
4.3 Distinguishing Collective Contracts and Wage Bargaining
chinese labor market reform
Collective contracts have been present in China since the early 1980s and have been reshaping themselves over time (Sek and Warner, 1998). Despite their presence and evolution one might question their effectiveness. First, its representation of workers interest is questionable as is the leverage against employers in the bargaining process. Second, their scope is fairly limited. The agreements do not emphasize a confrontational bargaining process between management and unions, as the main goal is to create harmony and stability
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