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(Union) Made in China: The Tag Corporate America Doesn't Want You to See

Multinational corporations have been roaming the globe in a race to the bottom, competing solely on which can pay their workers the least -- and far too many have settled in China. As a result, what were once good-paying American jobs with benefits are now too often underpaid Chinese jobs in poor working conditions.

So even as the skyscrapers of Shanghai, China's financial capital, symbolize the rapid progress and wealth creation that have changed the way many Chinese live, great challenges remain for the majority of workers. Across the vast industrial centers, more workers labor under sweatshop conditions than anywhere in the world. There are 800 million rural poor, and 180 million unemployed. China has more unemployment than the U.S. has workers.

And now, amidst this great global economic transformation, what was once unthinkable in China is happening every day: More workers are beginning to speak out or take action in the workplace, despite the repercussions.

The government has responded by pushing forward with a new labor law that would increase workplace protections and strengthen the ability for workers to collectively bargain improvements on the job. Perhaps they see the All-China Federation of Trade Unions and the new labor law as essential components to staying ahead of the curve to prevent social upheaval, but the move is a clear sign that growing contradictions in China are creating a new openness to ideas and practices American unions have championed for decades.

Enter the American Chamber of Commerce in China (AmCham), which represents 1,300 U.S. companies doing business there. They responded to the labor law proposal with a thinly veiled threat that companies will curtail investment and hire fewer workers in China if the new law is implemented.

That's right, the same American corporate interests that are spending millions to combat workers' efforts to choose a voice at work in the U.S. are against important labor reforms that would help protect Chinese workers on the job.

Change to Win took our concerns directly to AmCham in Beijing. Officials told us that, unlike the Chamber in the U.S., "AmCham is not against unions." In fact, they told us AmCham is for unions, as long as these worker organizations are "independent." [What we heard from the description of "independent" unions was not a sudden concern about the ACFTU's ties to the Communist party; rather their preference appears to be for unions that are actually more malleable than the ACFTU.]

Listening to U.S. business interests, you would think that the ACFTU has a stranglehold on U.S. companies in China! The main criticism was that the ACFTU makes it tough to do business in China because it impedes "flexibility." That's a code word for companies to arbitrarily fire workers, ratchet down wages and fight unionization.

But while the ACFTU has made significant progress toward uniting the workers at major multinationals operating in China, including Wal-Mart, McDonald's and KFC, an April 2007 survey by Baker & McKenzie found that 89 percent of multinationals in China are not covered by any collective agreement whatsoever.

If we assume the same percentage of workers at these multinationals are not covered by a contract, the private sector in China is not that different from the United States. The vast majority of Chinese workers, just like in the United States, have no real protection on the job. [Recognizing this, the Change to Win delegation conducted a day-long seminar on collective bargaining with our Chinese counterparts while we were there.]

The bottom line is that corporations -- American or otherwise -- want as few limits on their "freedom" to do business as possible. And freedom, in this context, means operating "union-free" or with a company union.

But freedom means something very different to the men and women who work hard each day to generate soaring profits for their employers. They want the freedom to choose a voice at work, to collectively bargain for decent wages and benefits, safe workplace conditions, and protection on the job.

As we confront corporate interests in the U.S., we see the same interests attempting to interfere with the efforts of Chinese workers to improve their lives. And just as we demand the right of workers to choose a voice at work in the U.S., we also demand the right of workers to unite everywhere.

Change to Win unions are involved in large scale campaigns to help port drivers, hotel workers, bus drivers, janitors, food workers, health care workers, and others fairly share in the prosperity of today's global economy. Workers are sharing ideas and strategies with counterparts in their industries in China -- not to mention India, Europe, and in Latin America.

Globalization requires that we work together to end employer opposition to unions everywhere to help restore the American Dream in the 21st century. And we pledge our solidarity with workers and unions around the world who share our mission.

Greg Tarpinian is the Executive Director of Change to Win.

[UPDATE: Great discussion going on in the comments here! Greg Tarpinian has posted a follow-up addressing some of the questions raised in the comments. -Ed.]

Comments (4)

Comments posted to CtW Connect are the sole property of the individual posting them, and do not necessarily reflect the viewpoints of Change to Win, its affiliated unions, or its leadership.

Mary Chenaille said on June 7, 2007 at 8:02 AM:

How about this? USA interests do cheap business in China; Chinese trade unions raise living standards for its workers. Prices for Chinese goods rise slowly, almost imperceptably, until corporate profits fall and USA is unable to pay for items because our workers are i n service jobs paying $5.15/hour! Who would have imagined China with such forethought!

I find it odd that, during your ten days in the People’s Republic of China, your delegation shunned the Hong Kong Confederation of Trade Unions, the only honest-to-goodness union in all of China. Ignoring it does not quite square with your stated goal of solidarity with workers and unions everywhere.

Union advocates in Hong Kong recently compiled a partial list of labor rights activists serving prison sentences of up to 20 years in China for their pro-worker activism – only the 27 publicly known to be behind bars. I wonder whether your delegation took the opportunity to inquire about these prisoners.

If not, consider doing so during your next visit with the All-China Federation of Trade Unions (ACFTU). You might, for example, ask about the plight of Kong Youping, a former ACFTU official now serving a 15-year sentence for daring to advocate trade unions that are free from government and Communist Party control. An American, formerly a top executive in a multinational corporation, John Kamm, has pressed for the release of jailed activists, including workers, during his visits to China, and so I would presume your group could do likewise without offending your hosts.

Of course, who can argue with your goal of pursuing solidarity with workers everywhere? But I wonder what kind of solidarity you really promoted in China. Take the many well-staged and well-publicized photos of your distinguished group meeting with high-level Chinese leaders (note the photo selection on the Change to Win Website). Do those images demonstrate solidarity with unjustly jailed workers, or with their jailers?

Robert A. Senser
editor, Human Rights for Workers
http://www.senser.com
6/9/07

Anita Chan said on June 12, 2007 at 11:31 PM:

As a researcher on Chinese labor, let me caution everyone what it means when foreign companies like KFC, Pizza Hut, and McDonald's are "organized" in China. Some of their outlets have had trade union branches for some time, but the food chains ran into controversy within China two months ago for underpaying workers. These union branches hadn't done anything until several Chinese reporters got themselves hired at a few of these outlets and wrote an exposé story about the illegally low wages.

Details on how this controversial case was reported in Chinese newspapers are available in a new e-bulletin, "China Labor News Translations" , which comes out irregularly. (You may also request previous postings.) The last posting was on this particular case. The ACFTU came out better than the local governments as this case evolved, but we still have to wait and see.

I've published an article in the current issue of "New Labor Forum" on how the Wal-Mart stores in China got unionized. I hope to be able to report on this blog within the next several weeks about more recent occurrences. If it is found that the new union branches a year ago democratically set up without Wal-Mart's knowledge are no better than the old style non-functioning union branches found in many foreign-funded enterprises, then perhaps it is time for SEIU to come in to lend a helping hand to the ACFTU to see how to strengthen them. Is this possibly what the newly-established relationship between Change to Win and the ACFTU might facilitate?

Anita Chan

Research Fellow
Contemporary China Centre
Research School of Pacific & Asian Studies
Australian National University
Canberra 0200
Australia
http://rspas.anu.edu.au/people/personal/chana_ccc.php
http://rspas.anu.edu.au/ccc/pubs/chan_a.php

In response to Anita Chan, we plan to provide assistance where requested and to ask for assistance from the ACFTU where it makes sense.

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