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China : Labor Contract Law aims for harmonious textile industry

China : Labor Contract Law aims for harmonious textile industry

Write: Valentine [2011-05-20]
The ‘Labor Contract Law’ passed by the Tenth National People’s Congress on June 29, will be implemented on January 1, 2008. The law aims at ‘Construction and development of harmonious and stable labor relations’.
In the labor-intensive garment industry, some issues can be categorized as sub-standards.
Working for long hours is a common phenomenon in textile and garment enterprises. Some employees work as long as 83 to 90 hours in a week without taking any leave for three months. This kind of overtime limit is against labor law.
Experts observe that enterprises are solely responsible for the recent labor shortage faced by the industry. If workers were given good protection and properly treated, no serious labor problems would arise.
The recently released report of the Federation of World Large Enterprises reveal that although the wages of Chinese manufacturing workers are only 2.9 percent compared to the counter part of the US, their productivity level is 13.7 percent more than the latter.
According to the '11th Five-Year' development program of China's textile industry, labor wages is expected to increase to 85,000 yuan per capita annually by 2010.
It could be said that ‘Labor Contract Law’ would establish an institutional mechanism for harmonious labor employment, while corporate social responsibility would act as an internal procedure to promote it.
China Textile corporate social responsibility management system (CSC9000 T) launched in 2005 by Textile Industry Association is the first standardized management system.
Professionals believe that since textile and garment industries are labor-intensive, China has a significant cost advantage in human resources. Although capital is important, labourers are the key factor for business development.
The industry must make good use of this comparative advantage of easily available labourers and take a step ahead to implement corporate social responsibility.