Protection Of Labor Rights During Merger & Acquisition In Restructuring Of State-owned Enterprises

Corporate M&A has become a trend of the world's economic development. In China, with the further deepening of China's economic structural reform, merger and reorganization of state-owned enterprises is also increasing, in particular policies and strategies are gradually implemented, such as the strategic readjustment of the national economy and the strategic reorganization of state-owned enterprises and so on. Nowadays state-owned enterprises merger and reorganization is not only an inherent requirement of the market economy and an effective means of achieving optimal allocation of resources, but also become a key factor of the strategic readjustment of the national economy and the strategic reorganization of state-owned enterprises in successful transition. However, as conflicts among various interest groups further intensify, large-scale social events have also been outbreaks, which is caused by merger and reorganization of the state-owned enterprises. Of these, Jilin Tonghua lron and Steel event is regarded as a landmark event. Therefore, the protection of the labor tights becomes increasingly important in the merger and reorganization of state-owned enterprises. Against that background, this paper attempts to analyze three issues: First, form a theoretical level, analyze the root causes of frequent social groups events in merger and reorganization of state-owned enterprises; Second, form a practical point of view, based on the analysis of the relevant case, research related issues in the process of the merger and reorganization of state-owned enterprises, which includes damages of the labor rights and interests; the acts and choices in merger and reorganization; the transformation which transfomes form intemal interest conflicts to social groups events; coping strategies, effectiveness and experience at home and abroad about the protection of labor rights and interest when facing social group events and in merger and reorganization; third ,combining theory with practice, explore the principles of protecting workers rights and interests and the practical policy measures in the process of merger and reorganization of state-owned enterprises. The whole article is divided six sections.Section one, ask questions and literature review. M&A restructuring of state-owned enterprises is requirements of the market and the means of achieving an effective allocation of resources. At the same time, it is also the key to successful transition and achieving healthy growth of state-owned enterprises. However, large number of the outbreak of the"groups"incidents are not"accidental factors"or"a moment power". Economic practice needs us to make a scientific answer and achieve a break through in understanding. The paper identifies this focus ultimately through the induction and sorting of the literature.Section two, restructuring of state-owned enterprises mergers and acquisitions among the labor rights protection from the analysis of the theoretical level. This part analyzes the theoretical difficulties from some aspects about the protection of workers rights and interests in the merger and reorganization of state-owned enterprises, at the same ting.Section three, from a practical level, state-owned enterprises restructuring and its effect on the rights and interests of workers. One is from the inevitable market-oriented selection, the other is form the adjustment of labor relations and its impact on workers rights and interests in the restructuring of the state-owned enterprises. The latter is more important. It discusses the problem in such areas: the adjustment of state-owned properly and the change of worker's"status", the chain of"labor connections"and the sense of deprivation ;the non-equilibrium of property rights and labor rights and the lack of workers right to speak; the weakening of trade union organization, employment flexibility and the increase in employment; the pattern of remodeling of economic interests and expansion of income gap.Section four, acts in selection and social conflicts in the merger and reorganization of state-owned enterprises. It deals with two aspects. One is about the behavior choice and objectives conflict of corporate and government, the other is about the behavior selection of workers and social conflicts. The latter is the workers'patience and the potential conflicts.Section five, the policy options of the conflict resolution and workers rights and interests in the current. M&A restructuring of state-owned enterprises. It analyzes the current policy options of mergers and acquisitions at home and abroad on the restructuring of state-owned enterprises and how to solve the conflicts. Abroad it takes the United Kingdom, Germany and Sweden as an example. China's policy choices were mainly discussed from positive and negative aspects.Section six, the policy recommendations of protection of workers rights and interests in M&A restructuring of state-owned enterprises. It mainly analyzes the principle and coordination mechanisms which the labor rights protection should observe during merger and reorganization of the state-owned enterprises. The principles of the protection of labor rights is the following: the principle of social equity and the principle of economic efficiency, progressive principle, the principle of complementarity, the principle of political feasibility etc. the coordination mechanism in the protection of workers rights and interests is to play a government-led social governance, emphasis on the social responsibility based on the performance of corporate and achieve that workers match with the name of"master"status, and so on.