CTI Monthly
03/2009

How to build a harmonious labor relationship within factories

On March 13 2009, the China Training Institute (CTI) of BSR held a salon entitled “How to build a harmonious labor relationship within factories” in Guangzhou. There are 20 representatives from brands and suppliers attended the salon. Participants discussed how to manage labor relations during current financial turmoil. BSR invited official from Guangdong employment bureau to share government’s support in managing labor relations.  
 
Background
 
  1. Labor conflicts during financial turmoil: During downsize of economy, most of companies take lay-off or cutting benefits as a tool to reduce costs. As a result, it intensifies the relationship between management and employees, which will lead to riots and labor conflicts. 
     
  2. Annual report of company labor relationship of 2008-2009: the general judgment of labor relationship is "stable in low level";two improved aspects: salary, working hours and social insurance; 5 problems remain exist: labor regulations, labor contract, collective negotiation and contract, labor productivity and occupational safety and health. 
     
  3. Voice from government: Uphold the implementation of labor contract law; Wu Banguo-preventing delinquent actions of salary and large scale lay-off; Li Zhaoxin-promotion of building harmonious labor relationship is the long-term response of financial crisis. 
 
Survey in the meeting: 

  1. What are the factors do you think will cause un-harmonious labor relationship?
  2. What do you think a labor relationship practitioner can do to resolve the above problems?
 
According to the feedback of all the attendees, the factors that cause un-harmonious labor relationship including:
  1. salary level
  2. long overtime and unfair payment
  3. social insurance and benefit
  4. communication between managers and employees, un-confidence between each other
  5. employee position reasonable arrangement and transformation
  6. compensation of labor contract termination
  7. bad business
  8. employees’ misunderstanding of company policies or un-transparent company policies
  9. attention of senior managers
  10. company did not respond to workers’ complaint and resulted in bad consequence. 
 
For the above reasons, the participants thought a labor relationship practitioner can do:
  1. building and maintaining the confidence and communication between managers and employees
  2. coordinating specific events
  3. the improvement of environment
  4. making the built employee relationship management system efficient
  5. promoting labor harmony, improving employees’ attributive feeling and their efficiency
  6. communicating on time and preventing strike
  7. reducing worker turnover
  8. understanding laws and regulations
  9. dealing with labor dispute, calm down employees mood and encourage their morale 
  10. providing professional service when adjusting worker positions 
 
Topic: How to build harmonious labor relationship in factory in the new circumstance 
 
I.  The signature of labor contract
II. Confirmation of labor relationship
III.Labor contract termination and breach 
  1. Can labor contract signature abandon social insurance 
  2. The types of labor contract termination and breach
  3. Procedure of dealing with bad employees
  4. Interview and areas need pay attention to
  5. Obtain evidence and confirmation
  6. Three Principles of acting legally 
  7. Procedure of dealing with labor disputes
  8. Important issues regarding overtime payment

 

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