CHINESE LABOUR CONTRACT ARBITRATION: ‘NO UNION, NO PROBLEM’

Abstract

There has been an explosion of labour contract disputes in China. As individual and collective labour disputes have increased, the Chinese government has encouraged the channelling of these disputes into the mediation and arbitration process and away from street protests, spontaneous strikes, and other collective action. To date, the research on the performance of labour arbitration indicates mixed results, and is largely based on qualitative research. Consequently there is limited empirical evidence on which to assess how workers and employers rate their Labour Arbitration Bureau (LAB) dispute resolution experience. In the first study which uses quantitative survey data to explore this issue, we examine participant attitudes towards arbitration. Using a survey administered to disputants (employer and employees) in the city of Dalian, Liaoning Province, we examine the extent to which labour arbitration has met the needs of the parties. Qualitative interviews with disputants and lead arbitrators were used to triangulate survey findings. Contrary to expectations, our survey data indicate that unions were not generally involved in advocating for the rights of the employee. Nonetheless, respondents in our study reported high levels of satisfaction with the arbitration process on a range of procedural due process and substantive due process measures. Results suggest disputants were typically satisfied with the arbitration, believed that the arbitration was fair, and were willing to recommend it to others as a method for resolving labour contract disputes. Demographic data indicate that the process was also inclusive, with less educated workers, migrant workers, and women, all participating.