Doing Business in China? Get Ready for Union Votes

Doing Business in China? Get Ready for Union Votes

Collective bargaining could soon become a regular part of doing business in China, explains Seyfarth Shaw partner Luke Edwards.

On the Workplace Law & Strategy Blog, Edwards says that an increase in strikes, including some recent campaigns at a number of international businesses, is breathing new life into previous efforts to create a collective-bargaining regime.

Edwards says that earlier this year, the Ministry of Human Resources and Social Security unveiled a notice that said by the end of 2015, collective agreements must cover 80 percent of employers in China. Although the notice doesn’t have a direct impact on companies, he says it is expected to accelerate the trend toward compulsory collective-bargaining rules in all provinces.

So what does this mean for companies that have operations in China? Edwards says they should begin assessing whether they’re prepared for any new developments and examine whether their own collective-bargaining experiences might assist them in crafting strategies for their China operations.

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