Interests-based Labor Conflicts During Merge And Acquisitions And The Distress Of Collective Negotiation

With domestic income gap, aggravated social conflict and imbalance in the distribution pattern, China’s economic system is undergoing a "high-cost, high-risk" period of time. Labor relations conflicts and the escalation of the conflict have become the sources of risk of social economy development. According to China Labor Statistical Yearbook data, from 2000 to 2014, the number of labor dispute jumped 5.3-fold, to 715163. Among them, the number of collective labor disputes and related employees number jumped with increase rate of 28.6% and 15.7%. From the development of labor relations, the current labor relations entered a transition period of collectivization, collective labor relations issues resulting impact on China has become a huge challenge to build a harmonious labor relation.Faced with the growing amount of labor conflicts and the enormous social impact resulting, how to properly handle conflicts caused by mergers and acquisitions is a huge challenge for both corporation and community. The question of how to effectively alleviate the labor conflict under the frenzy of mergers and acquisitions triggered not only for business management strategies and approaches, but also presented a severe test for our existing income distribution system, economic development and labor relations legislation. Therefore, via analyzing labor conflict caused by merger and acquisitions, understand the formation mechanism and evolution mechanism of labor conflicts, this study will put forward to resolving conflicts, maintaining social stability, promoting economic development and building a harmonious society, which is of great theoretical and practical significance.This article is intended to study the labor relation under market economy basedon the strike in Pepsi case, Cooper Tire case and Dongguan Nokia case. Via these three specific cases, this study try to explore the formation mechanism of merger and acquisitions environment, labor conflicts, and explore the effect of collective negotiation in labor conflicts from generation to recovery. Further, by comparing the institutional development of collective negotiation in foreign countries to understand the characteristics and learn from foreign experience in collective negotiation system,this study also compares the different nature of the merger case to understand the collective negotiation system in practice due to environmental factors such as the difference between the actual impact of the utility, make recommendations to improve the basis for targeted practice. Base on all facts above, this article will give put forward certain policy advice.Not only there has conflict of interest between employers and employees, but also the possibility of cooperation. Harmonious labor relations framework is not intended to eliminate the interest confrontation state between employers and employees, but rather to minimize the conflict between the two sides in order to ensure that the conflict can not affect the possibility of cooperation. Collective negotiation system as an essential component of a democratic society in western countries has been regarded as a transaction between employers and employees to solve the problem of low-cost institutional arrangements. In contrast, for various reasons, both collective negotiation and collective negotiation failed to achieve expected results when designed initially in China.