Since the 1990s, trade unions in China have experienced three key phases of transformation, namely a period of gradual decline from 1993 to 1999, a period of rapid growth from 1999 to 2002, and a period of growth and consolidation since 2003. From the early 1990s, China started to take decisive measures to strengthen its post-1978 economic reforms, with the gradual introduction of
privatisation, corporatisation and restructuring of the public sector, increasing use of contract management systems, and growing numbers of troubled state-owned exnterprises (SOEs) pushed into bankruptcy. The late 1990s were indeed the most difficult period both for the government and for the trade unions.
privatisation, corporatisation and restructuring of the public sector, increasing use of contract management systems, and growing numbers of troubled state-owned exnterprises (SOEs) pushed into bankruptcy. The late 1990s were indeed the most difficult period both for the government and for the trade unions.
The Asian financial crisis of 1997–98 caused a serious economic downturn, with an increasing number of private enterprises closing down due to lack of export markets. At the same time there was subsequent restructuring of public-sector firms. The economic downturn also increased the incidence of labour disputes over delayed or unpaid wages, weak labour-contract protection for workers and lack of compensation for injury. Consequently, many ‘grass roots workers’ protection groups’ emerged that were independent from the ACFTU. In June 2000, the apex body of the ACFTU established a new policy that aimed at developing new enterprise-based unions as ‘an urgent task’. Click here to read full IIPM article..
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