ers involved . Assuming these numbers are not inflated, coverage is 4.8% of the total workforce. It also remains to be analyzed how and under what conditions these negotiations are carried out. Given the limited bargaining power of Chinese unions the actual significance may need to be put in perspective. However, it should be noted that, very much in line with previous Chinese reform efforts, a certain amount of experimentation is being carried out at a regional level. Though collective wage bargaining is being carried out to a limited extent, wage negations do not belong to the core activity of unions and the focus has been instead on protecting workers legal rights. Chinese trade unions are highly unlikely to become as confrontational as in many Western countries any time soon, but the government has taken steps to increase their power base in protecting workers legal rights and providing them a pressure valve in case of violations. Current Chinese conditions are not favorable for wage bargaining as without a power balance the process on equal terms is not feasible. Strikes would provide workers the necessary instruments increasing their leverage during the negotiation process. However, strikes are viewed with apprehension by the government as it is disruptive to labor-management relations and might be a source for potential social unrest (Sek and Warner, 2000). Since 1982 Chinese law, therefore, officially prohibits strikes, significantly weakening trade unions bargaining power.
4.4 Independent Unions
indicator that Chinese workers are increasingly facing frustration is the now frequent occurrence of spontaneous strikes and unrest, which have led the Communist Party leadership to identify labor related unrest as one of the most worrying threats to Chinese stability ( Sheehan, 2000). As illustrated above grass-root trade unions under the governing body the ACFTU are to defuse this threat. At the same time trade unions should help prevent the emergence of independent trade unions, especially out of fear of the prospects of a Polish Solidarity union uprising (Metcalf and Li, 2005). These fears were underlined by events around the Tiananmen Square events in 1989 and have increased party control over any union activity, as well as the determination to undermine independent trade unions. In many cases trade unions have failed to resolve labor disputes or to represent workers interests increasing the perception among workers that its interest are not effectively being represented (Howell, 2003). Studies confirm low approval ratings: only a fraction of unionized workers would turn to the trade union for assistance (see eg Chen and Lu (2000) and Yao and Guo, 2004). Needless to say, that this refers to unionized enterprises only, and does not consider ...
