Protection Of Rights And Interests Of Workers On Mergers And Acquisitions

M&A was originally born in the Western capitalist countries, under the conditions of market economy, the rise of enterprise integration and capital operation, M&A has set off a five wave in an international context.With the concept of China’s market economy continues to mature, especially after the accession to the WTO, Mergers and acquisitions has become a prominent feature of China’s economic, Become successfully promote enterprise restructuring and the establishment of a sound capital market. However, M&A is a double-edged sword. It plays an important role in configuration in optimizing market resources, economies of scale, achieve enterprise leaps and bounds as well as national macroeconomic and structural adjustment.It also leads to trade monopoly, non-rational investment, against labor rights and interests and a series of outstanding problems. In mergers and acquisitions, companies often only care about whether the transactions are profitable, the pursuit of the maximization of corporate interests, neglect or even harm the legitimate rights and interests of laborers. About this subject, current legislation and the academic focus of the study emphasis on the acquisition of the rights and obligations of both parties, especially the protection of shareholders’rights and to prevent loss of state assets, more concerned about the assessment of the assets of state-owned enterprises, equity protection, which were ignoredthe legal protection of labor rights in mergers and acquisitions issues.Firstly, from the different stages of M&A perspective, companies may impact on workers’rights in various segments of mergers and acquisitions. Prior to the implementation of mergers and acquisitions, the workers’right to information is vulnerable to abuse,in the case of asymmetric information, the companies often take unilateral acts in the mergers and acquisitions, terminate the labor contract, resulting in a large number of workers being laid off. After completion of the mergers and acquisitions, with emphasis on the protection of laborers’working conditions are not reduced. In the process of mergers and acquisitions, to keep business property rights, management rights and personal rights of the workers, the right to life is balance. The ideal state is to achieve a balance of business interests and the legitimate rights and interests of workers, however, in the countries of the lack of labor market development, it should be tilted for workers protection. Base on the theory of industrial democracy and social equilibrium theory, human capital theory and the theory of corporate social responsibility requirements, protection of labor rights in mergers and acquisitions have a major social significance.Based on the combination of China’s mergers and acquisitions practice, combing the relevant legislation on the protection of mergers and acquisitions in the interests of workers,due to the particularity of the market economy reforms in the past30years, the legal provisions and policies of the various historical stages, inconsistent and conflicting. January1,2008,"Labor Contract Law has its own historic mission and legislative purposes,although the protection of labor rights in mergers and acquisitions provisions, but the provisions are extremely simple, reasonable legislation is still worthy of reflection. China’s urgent need to establish a unified national laws and regulations of mergers and acquisitions which regardless of company property. At the legislative level to an overall specification of mergers and acquisitions, especially the protection of workers’right to participate in mergers and acquisitions, labor relations, inheritance, and fire protection system and unemployment social security system to take into consideration.Around these shortcomings appear in our legislation, to fully examine the legislation and practice of different countries and regions,combined with China’s reality, the article suggests a hierarchical point of view from the workers,different workers should be taken to a different mode of labor relations inherited. To protect workers right to know and the right to participate in the merger, we should focus on to play the role of the interests of workers on behalf of institutions such as trade unions and workers’congresses in mergers and acquisitions, to express interest demands and engage in collective bargaining. While combing China’s fire protection and economic layoff system, to avoid the legislative loopholes.From the long term, should establish a sound social security system for unemployed workers to build a secure firewall, and change the status quo of China’s trade unions, straighten the role, and earnestly safeguard the rights of workers. Finally, based on our current labor market situation,in the process of mergers and acquisitions, focusing on protection of the interests of the weaker party workers,which have important and far-reaching significance on enhancing the long-terminterests,maintaining the stability of the social order and long-term development of the national economy.