ACFTU and Trade Unions

100 percent unionization by December 2009 – ACFTU to go direct to
MNC headquarters

The following article from Beijing Review, a semi-official mainland magazine recounts the ongoing campaigns and successes of the ACTU in unionizing foreign-owned companies and in particular in the Fortune 500 companies.

As could be expected, officially at least  the ACFTU is doing pretty well in meeting its quota.  As of the 28 December there are ACFTU branches in around 73 percent of foreign companies. The articles states that only around half of the Fortune 500 companies have branches which is  a lower figure than the 80 percent the ACFTU was reported to have claimed in November 2008, after its much publicized 100 day campaign targeting Fortune 500 companies.  Companies resisting include Microsoft and Wyeth.

The article explains how some MNCs prefer to create staff associations or clubs – and work with them – a situation most of us are familiar with. However in a rather ironic example the president of a newly formed ACFTU branch at BBA (a BMW related factory) stated that the management had previously set up a staff club of which he was the president and wanted to simply turn this into a union. This was opposed by the workers and the local union and a proper union ‘structure’ was instead formed – tellingly however Sun Zhenzhong remained its president!

The article also gives details on how MNCs are fearful that a trade union could lead “to strike(s) like foreign trade unions” but Wang Ying, a division chief from the Grassroots Organizations and Capacity Building Department of the ACFTU explained once again that “Chinese trade unions differ from those in foreign countries”.

Most interestingly however the article quotes officials who make the salient point that sometimes it is local Chinese managers that misinterpret the law or obstruct their efforts, passing on the wrong message to the foreign managers. Therefore in the future the ACFTU will “directly communicate with their foreign headquarters."

This may allow industrial unions and/or company unions to have more leverage when communicating with company managers about what goes on in a China plant if the ACFTU is going directly to company headquarters where foreign unions may already have an established dialogue. It may also reduce the cases where local management, Chinese and foreign, avoid dialogue with foreign company unions as well as the ACFTU.

Alternatively however it may exacerbate the problem of company complicity in establishing paper unions with the ACFTU in return for tax breaks and a ‘quiet’ workforce by encouraging company directors to work exclusively with the ACFTU at the higher levels as opposed to the few but hopeful instances of workers creating their own union from the bottom up.

What is almost certain is that the ACFTU will reach its target – at least on paper – of 100 percent ‘unionization’ in foreign owned companies by the end of this year.

For more details on ongoing membership drives in MNCs see here http://www.ihlo.org/LRC/ACFTU/180808b.html  
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Beijing Review: ACFTU aims to build trade unions at all foreign-funded companies in China by the end of 2009
FENG JIANHUA
11 January 2009

All-China Federation of Trade Unions (ACFTU) held a press conference on December 24, 2008, reviewing the achievements of the national unionization campaign, which began in June the same year, for multinational companies in China.

According to data provided by ACFTU, 483 Fortune 500 firms are doing business in China, with 375 setting up headquarters, about 10,000 having subsidiary operations. Less than half of them have established trade unions, compared with more than 73 percent for all foreign-funded firms in China.

"During the national unionization campaign, ACFTU pushed 149 of the Fortune 500 firms to set up trade unions," said Guo Wencai, Director of the Grassroots Organizations and Capacity Building Department of ACFTU. "Until today, a total of 313 multinational companies' headquarters have set up trade unions, accounting for 83 percent of those based in China."

Difficulties

According to Guo, although the national unionization campaign achieved much, the situation remains serious. "Fortune 500 firms have been our focus in the formation of trade unions among foreign-funded enterprises," Guo said.

One excuse for multinational companies in China not setting up trade unions is that they have similar organizations such as staff welfare unions, workers welfare unions and staff clubs.

"Obviously, those so-called staff welfare unions are not equal to trade unions," said Wang Ying, a division chief of the Grassroots Organizations and Capacity Building Department of ACFTU. "They are not independent organizations but only subsidiaries of those companies so they cannot protect the rights of staff." According to China's Trade Union Law, trade unions must be independent legal entities, with equal rights to companies, mutually cooperating and supporting them.

In mid-January of 2007, BMW Brilliance Automotive Ltd. (BBA), located in Shenyang, capital of Liaoning Province, established a trade union after nearly half a year of preparation.

Sun Zhenzhong, President of the trade union, said BBA had set up a staff club before establishing the trade union, which he had been the president of it. During preparation for setting up the trade union, management at BBA advocated directly changing the staff club into a trade union, without changing its original structure. This idea was opposed by its workers and the local grassroots trade union.

"The main purpose of the staff club is to enrich workers' spare time and its members are all part-time. The main purpose of the trade union is to safeguard the rights and interests of staff members," Sun said.

Another reason multinational companies give for not setting up trade unions is that their staff members do not propose the idea.

Alluding to this explanation, Wang said it was because multinational companies do not fully understand Chinese law. According to the Trade Union Law, all workers have the right to organize and be members of a trade union and no organization or person has the right to limit the establishment of one.

Law relating to China's foreign-funded enterprises also clearly regulates that workers in foreign-funded firms have the right to set up trade unions simply by making proposals to the local grassroots trade union.

"According to the law, companies have no right to oppose the setting up of a trade union. On the contrary, they must provide the necessary support, such as a location and office stationary," Wang said.

According to Sun, when BBA prepared to set up a trade union, the foreign side had some worries. They worried that a trade union would lead the staff and workers to strike like foreign trade unions when employers and employees fail to reach a mutual understanding.

Wang said that multinational companies have misunderstood Chinese trade unions. "Chinese trade unions differ from those in foreign countries, and this has helped boost membership. Chinese unions emphasize cooperation between workers and management."

Sun said management and staff are both satisfied with their trade union. Up to now, 97 percent of staff and workers at BBA have attended trade union meetings.

"Today, our trade union is on the right track," he said. "It has largely increased the efficiency of the company and resolved nearly 20 conflicts."

Strengthening communication

"We will continue to push multinational companies, including Fortune 500 firms, to set up trade unions in China in 2009," Guo said.

According to Wang, many well-known multinational companies in the Fortune 500 have not set up trade unions, including Microsoft and Wyeth. "In fact, the main problems do not exist on the foreign side but on the Chinese side," said Wang. "Many Chinese staff lawyers and human resource managers in those multinational companies do not totally understand the related laws, so they deliver the wrong messages to the foreign side."

Hence, ACFTU has determined to change its tactics. "We will directly communicate with their foreign headquarters," Wang said.

IHLO

Source: http://www.bjreview.com.cn/nation/txt/2009-01/11/content_174156_2.htm
January-11-2009 NO. 3 JAN. 15, 2009