A Number Of Issues, The Implementation Of Collective Bargaining And Collective Contract System

China is undergoing a critical period of transition, shifting from a Planned Economy to a Socialist Market Economy, during which stage current Chinese labor relations have been witnessing extensive and profound changes due to inner dynamics within the economy, like diversification of actualization forms of the state-owned economies and rapid development of private enterprises; varying employment modes, social interest relations, distribution of wealth, and ineffective legal system in the field of labor relations. All of these changes exert an influence on corporate labor-management relationship, from which structural problems continue to loom large, as the management's power has been on the increase, while labor's has shrunk. Accompanying such structural problems is a transformation of the social welfare structure. Any sort of improper treatment with on-going labor relations will bring about unrest and turbulence within a society and further an overall economic reform campaign.According to the experiences of western industrialized countries, a congruent, stable labor relationship serves as a prerequisite for the sustained and healthy development of a national economy. In contrast, a perennially discordant, tumultuous labor relationship will bring about disorder to corporate management, disrupt economic growth, exert a destabilizing effect on social order, and possibly endanger the national security. Currently, the study and construction of a new labor relationship adjustment mechanism is an important research project that requires more attention from both academia and the government as well.The Collective Bargaining and Collective Agreement Mechanism, universally practiced in western market economies, is a labor legal system aimed at handling labor relation problems. With this mechanism in effect, the opinions and demands of laborers could be fully aired, and spontaneous, out-of-order conflicts could be resolved by consultation within a legalized framework. Thus, a harmonious, healthy labor relationship could be guaranteed, and to some extent, it would ensure that the labor gain comparative equality with the management, by which the legal rights of them could be safeguarded. The dock lockout dispute that happened between thePMA (Pacific Marine Association) and the ILWU (International Longshore Workers Union) in September and October 2002 in the west coast of the U.S. is just a good case in point to demonstrate the effectiveness of the mechanism in handling labor relations.Based on an analysis of the general characteristics of collective bargaining and collective agreement in a market economy, this paper argues that it is urgent to implement this mechanism in the current context of China. The methodologies that will be applied in this claim include: Game Theory, Western Labor Economics, Labor Law Theory, Economics of Property Right and Institutional Economics. The important experiences achieved by the western market economies with regard to collective bargaining and collective agreement mechanism will be used as a reference point, all the while maintaining a focus on the changes taking place in the field of labor relations during the transitional period in China. Finally, several important problems involving progression to a proper operation of the collective bargaining and collective agreement mechanism will be fully addressed, with the intent of advancing this mechanism forward to a new stage, and thereby realizing a more harmonious, stable labor relationship in China.