The structure of collective contracting in China

ABSTRACT

The use of ‘collective contracts’, established through the process of ‘collective consultation’, to set the wages and working conditions of employees in China has increased dramatically over recent years. This paper offers an analysis of this important trend that is distinctive in three ways. First, we reflect on the meaning of collective contracting and collective consultation and distinguish them more conventional Western concepts of collective agreements and bargaining. Second, we suggest a framework – drawn from the well-established literature on the structure of collective bargaining – for analysing collective contracting in China. Third, by applying this framework to the existing empirical evidence – derived from publicly available data and published scholarly research – we provide an account of collective contracting in China that is more comprehensive than the existing literature and which clearly identifies the role of the state as central.

KEYWORDS:

• Collective contracting
• collective consultation
• collective bargaining
• collective agreements
• China

Notes

1. According to research data cited by Liu (2010), the average number of employees in a Chinese private enterprise was 13.7 in 2004.

2. It must be noted that more recent data on the coverage of collective contracting was not released publicly by the ACFTU.

Additional information

Notes on contributors

Ziheng Liu

Ziheng Liu is currently a PhD student in Newcastle Business School, The Faculty of Business and Law, University of Newcastle, Australia.

Shaobo Sun

Dr Shaobo SUN works since 1995 in the School of Management of Shandong University, China. She has taught finance and human resource management over many years. She has since 2005 been one of the authors of two textbooks which are China’s leading university textbooks in the field: International Finance; Finance theory and Transaction. Her research interests include human resource management; bank management; and organizational effectiveness.

Mark Bray

Professor Mark Bray has held the Foundation Chair of Employment Studies at the University of Newcastle, Australia, since 1997.