Research On Labor Union’s Function In Collective Wage Negotiation

Negotiation is a problem solving mechanism conducted by two equal parties on a voluntary basis for the purpose of solving controversial disputes or disagreements through the ways of communication and discussion. Thus negotiation is a joint decision making process considering the principles of equality, voluntariness and interests of all parties involved to achieve the win-win outcome. Collective negotiation system on wages refers to such behaviors that enterprises (representing employer) reach agreements with labor union (representing workers) through negotiation regarding the issues of internal wage distribution mechanism, the wage distribution form, income standards and so on. Collective negotiation system has existed in western developed countries for more than200years. It is proven that under market economy circumstances, labor unions, the defenders of workers’legitimate rights and interests play an important role in the process of collective negotiation system. A well-developed labor union is able to make contributions to resolve labor disputes, pursue social fairness and promote social progress. In this social-transitional era of Chinese mainland, the legal research on how to implement the functions of labor union will make a great difference both in theory and practice.Since1990s, Labor Law, Collective Contract Regulations, Trial Measures on Collective negotiation system on wages, Labor Contract Law etc. have been stipulated, which greatly enhance the control over the labor relations and protect the legitimate interests of workers. However, there still exists events of workers’ legitimate interests being harmed and labor union still has a long way to go in collective negotiation system on wages. This dissertation will follow the logical principles of discovering, analyzing and resolving problems and try to advocate legal suggestions as to enhance the labor union’s function in collective negotiation system on wages.Firstly by introducing labor union’s functions in Nanhai Honda Auto Company strike, this dissertation will gradually analyze that in order to avoid the frequent occurrence of this kind of social group event due to remuneration, labor union, acting as the representative of workers interest plays a significant role to balance workers’interests as well as social harmony and stability.Secondly, this dissertation proposes that in order to advocate practical measures as to enhance the functions of labor union in collective wage negotiation; we must analyze the current situation of labor union functions in China. With China’s transition from a planed economy to a market economy, labor union function also has changed from political role to mass organization role in market economy, the features of which are fairness, democracy, and legality and interest nature.By comparing labor union’s functions in theory to its actual functions in practice in China, the third part of this dissertation advocates that labor unions in China do not have many rights to speak, have not fully participated in the negotiation process, lack the support from relevant associations of its industry, and the collective contracts labor unions sign need more substantial contents.Based on the problems mentioned above, by considering our country’s specific economy system, this dissertation will analyze the reasons to these problems:firstly, there exist no detailed legal regulations over the issues of parties’ obligations in collective negotiation system on wages, appointment process of parties’ representatives, negotiation process and dispute resolution mechanism. Besides, legislations do not expressly granted workers the right to strike, which make the workers lose the bargain power in collective wage negotiation. Secondly, as we know the labor union proves to be the basis of collective negotiation system on wages, however, because of some local governments and enterprises’lack of legal awareness and inaccurate understanding as to the functions of labor union as well as lots of restrictions affecting the establishment of labor union and the number of labor union members and effects of traditional labor union mechanism, the legal status of labor union is not independent and the comprehensive ability of labor union members also need to be improved. Thirdly, usually it is the government that stresses the implement of collective negotiation system on wages rather than the need of enterprises and workers themselves, which leads to the lack of motivations and wrong directions of collective wage negotiation. The enterprises purely purse the number of collective contracts ignoring the substantial contents thereof. And considering the facts that the oversupply of Chinese total workforce, nature of employers’pursing profits maximization, and lack of recognition of the importance and necessity of collective wage negotiation, labor unions in China usually do not function very well in collective negotiation system on wages.Then how to enhance the labor unions’ functions in collective wage negotiations? The fifth part of the dissertation proposes some suggestions. Firstly, strengthen and perfect relevant legislations, which mean to clarify some ambiguous regulations and entitle workers the right to strike with reasonable limits. Protecting workers legitimate interests and increase disciplinary efforts against perpetrators harming the interests of workers and destructing the labor balance. Secondly, in labor union perspective, increased publicity and education efforts shall be given to raise the rate of membership. Besides, labor union shall build the system of protection of migrant workers’ union to speed up the construction of labor union, improve the proportion of migrant workers and reduce’voting by feet’events. In terms of the political and financial independence of labor union, designed and amended system will be adopted to enhance its independence. Then labor union members shall strength their negotiation ability to improve the efficiency of labor union activities. What is more, labor union shall fully cooperate with industry association, trade unions and other organizations to build multi-level collective negotiation structure. Government shall fully behave its roles of legislator; public interest protector and labor dispute arbitrator to have labor union make most of its functions in collective negotiation system on wages.