China's reform of the labour system -
IN the wave of general economic reform, reform on the labour system in China is also unfolding.
The basic feature of the existing labour system is: the state has full power of controlling and allocating jobs to all urban and rural labour power; all workers are allocated to enterprises in the status of reular workers; a regular relationship is established between the workers and the
Tand the right to a job is Communist Party, the Chinese proletariat has enjoyed a more privileged status than the peasants mainly because their support is necessary in countering the influence of the bourgeoisie, nant force of the Nationalists, military threat and economic blockade of American imperialism. Later, their suppressure of the Soviet bureaucracy.
At least, the CCP still considers that the system of regular jobs has played an active role in China's economic construction. "abuses" of the system: "big pot of rice" (same remuneration for all disregarding
individual contribution), "iron rice bowl", nurturing lazy people, "too much control, too strict allocation, one cannot get out once being put in an enterprise, and one's whole life is determined by one allocation"...
The present reform is carried out first on new recruits of state run enterprises. system of regular jobs is replaced by the system of contract jobs. The new system is also applied on new recruits in state infact, such a system has already been practised in non state run industrial and commercial enterprises.
The contract system has been tried in state run enterprises for a few years. According to the statistics, 3.5 million workers now work on a contract basis, and make up 4% of all workers in state run enterprises.
On October 1, four Temporary Stipulations relating to the contract system in state run enterprises promulgated by the State Council began to take effect. Let us look at how the reform affects contract workers in the light of the Stipulations. Stipulations unfavourable to workers
• Firstly, the term of contract is short, hence contract workers have no guarantee to their right to work. The enterprises determine the contract term according to the need of production and work, and recruit workers on short term (1 to 5 years), on long term (over 5 years) and on temporary basis (less than 1 year). When
(From October Review, September 1986) Zhang Kai Deng: capitalist methods the term expires, the contract can be renewed on mutual agreement, otherwise the workers will be unemployed.
• Secondly, the workers are dismissal at any time. provide that the contract can be annulled under the following conditions:
Othe probation worker is found to be not up to the requirements of recruitment.
worker cannot resume his/her work after convalescing from an illness or injury not caused by his / her work.
3. According to the "Temporary Stipulation on the dismissal of workers in state run enterprises who enlgated by the State Council, the folloing circumstances justify a dismissal: serious violation of labour discipline, violation of operation procedures thus inducing economic loss, bad attitude of service, disobedience to normal work transfer, fighting, or "committing other serious errors."
Othe enterprises have the power and the excuse to dismiss workers on free will. An example of the application of the first conditions is: in Wuhan, the Jiangxia Motor Repair Centre run on joint venture :it is not a state run enterprise) recruited
from 400 aplicants, but 44 workers (70% of all recruits) were dismissed during the probation period. (People's Dail Thorybor psychological pressure is strong and the labour intensity is increased. In the contract is stipulated the quantiSocialist Viewpoint No. 15 February 1987 p27
and quality quota of production, th
abour discipline, and the liability on th breaching of the contract.
• Fourthly, in the contract is stipulated
made for the damage caused by violation of the contract. Apparently, both parties are responsible, but in fact, the worker is the one vulnerable, since the worker has no right to resign before the term resignation can be considered violation of the contract. The Temporary Stipulations do not provide for the right of the worker to resign unless on the following conditions: adverse sanitary conditions or safecompliance of the contract; workers' pursuit of study on the agreement of the
Othe contract workers enjoy less benefits than regular workers. According to the Stipulations, the wages, in -surance benefits, bonuses and subsidies of contract workers should be the sme as those of regular workers of the same enterpnses. However, the following are different: 1. On the expiry of the contract, the worker can receive an unemployment fund for a short term. Workers who have worked for les than 5 years can receive the unemployment fund for not more than 12 months at a rate of 60% to 75% of their basic wages. Regular workers need not face the problem of expiry of the term of service or unemployment. 2. When a contract worker is dismissed after a stipulated period to convalesce from an illness or an injury not induced by medical subsidy of 3 to 6 months of basic wages, and an unemployment fund of not more than 12 months. For a regular worker he / she leaves the job after 6 months of medical treatment, enjoys paid every month equal to 20% to 30% of his / her basic wages, until resumption of labour power or until death. 3. The contract worker has to contribute to a pension fund. The amount is not more than 3% of the monthly basic wages (the enterprise contributes 15% of the wages). The pension the worker receives is the total amount paid. A regular worker, on the other hand, need not contribute to the retirement tund and atter retirement, receives 50% to 75% of his/her basic wages every month unitl death.
Welfare items such as residential quarters, childcare services, etc., are not mentioned in the Stipulations, reflecting that contract workers have no right to enjoy them.
Besides the above unfavourable items reflected by the Stipulations, the contract workers suffer a lowered social and political status. Their work is temporary, unstable; their relationship to enterprises is one of casual wage labour.
Workers against the Contract System The opinion of workers on the contract system has been revealed newspapers since the contract system was tried a few years ago. 1983, the China News Agency referred to a commentator's article in the Daily-: "At present, the cadres workers of many enterprises still harbour doubt and anxiety over the system of contract labour. Some workers once the relationship between the enterprise and the workers under the contract system becomes one of wage labour, will the political status and political treatment of workers changed, and livelihood not safguarded? can be comprehended."
The same opinion is reflected in the People's Daily on September 20, quoted questions put forward by readers: workers master of the enterprises? Will all regular workers turn into contract workers! September 23 Editor's Note said, "Quite a number of readers ask: what is the difference between China's system of contract labour and the capitalist system wage labour?" On October 5, the People's Daily carried an article entitled "Does the system of contract labour harm the interests of the workers?" It said that after the practice of the system of labour, "some people worry that the interests of the workers will be harmed." then quoted the answer of the Minster of these questions.
To the question of whether there exist any differences between the system of contract labour and the capitalist system of wage labour, Zhao explained that the two are qualitatively different because: 1. the system of property ownership is different; 2. the aim is different - the capitalists go after surplus value, whereas the system of contract labour aims at creating social wealth, satisfying the need of society and the need of the labourers; 3. the relationship and status of the two parties are ditferent — it is a relationship of exploiting and exoloited in the capitalist system of wage labour, whereas the status of the two parties signing the contract is equal. workers, will they not think that the enterprises use the means of extortion to seek profits, even if such means are not termed exploitation to seek surplus value? Will they not think that the phrase "workers are
exists only nominally? The facdirectors control much power, and can dismiss workers but workers have no unemployed, they are obliged to accept official "reference" to a job because if they refuse the reference two times without a
their unemployment fund will be cancelled. Workers are not masters Does the Chinese proletariat have the status or spirit of the master of the country?
Jiang Yiewi, the former deputy head and now the advisor of the Industrial Economic Study Academy of Social Sciences, said, still a central link in the ideological and political work to establish the spirit. among the worker masses." master said, "If workers have no right to intervene in the major decisions of the enterprises, it is difficult to assert that workers have the
status of master in the enterprises. real life, it is empty to talk to educate them to have such a spirit." If the general the in situation, how can contract workers whose On January 29, enterprises? Workers' All along, and workers are only required to work "hard fast, well and frugally". In addition, with worry that dard of the workers and the general peo- ple is very low. On the other hand, cadres enjoy material privileges and lead a corrupt, luxurious life, which contrasts with the hardship of the people. their tors frustrate the enthusiasm and creativity Such worry of the workers production. which Struggle between workers and the contract the bureaucracy In The million in 1952 to the present 120 million. significantly. of gains. system of wages calculated on an hourly basis by the system of piecwork wages or floating wages was carried out at a very slow tempo due to the strong resistance of contract the workers. The to induce differentiations workers, tion in production; yet, the workers divide the bonuses among bonuses cannot play the role they were in- Model tended for. authorities attempted to nuture are gneral- ly rejected and isolated by the workers. contract labour, the authorities quickly clarify that the rumour that regular will also workers workers is "a rumour without any policy basis." Zhao Dongyuan admitted that the reform on present the interests concerns workers and will bring about changes in some traditional concepts; the reform in- evitably will difficulties of contract labour, they also disagree with the reforms on prices, wages, encourage- ment for development of the commodity economy. The mood is reflected in the speech of Luo tion of Trade Unions, convened in early August. He said that old concepts and habits have quite a con- siderable influence on the worker masses. For example, some workers view the thaw Institute of under the "It is He
" 'If the workers cannot feel that they are master in workers are in such a jobs are not even secure be master of the the proletariat is master in name only. The real ruler is the CCP. The China poor and backward, the living stan- the These fac- and for peasants the three decades since 1949, the Chinese proletariat has increased from 16 Their general cultural level has also risen They reist attacks on their The CCP's attempt to replace the authorities then pro- moted the system of bonuses in an attempt the among and stimulate them on competi- themselves and the that the workers Now, with the promotion of the system of contract turn into the labour system of the general Trade Unions. encounter various The workers not only oppose the system minority to get rich first, capitalist of Gan, deputy chair of the General Federa- at the work con- ference on ideological work on workers Hong Kong. O! course my hale trensplante will be covered by sick pay. Baldnetal of d'omen. Pregnancy, on the other hand, is the natural stale of women." Socialist Viewpoint No. 15 February 1987 p28
on prices as "socialist superiority"; have doubt on the reform of the price system; view the wage reform with the selfish and egalitarian mentality of a small producer; fail to understand the extension of wage differentiations; reject the encouragement of a minority to get rich first; consider the
Price bowl" labour system as the signal of the proletariat being have the opinion that the practice of the system of contract labour will cause the ideology of wage labour among workers; fail to understand the development of the socialist commodity economy; etc.
illustrate that old concepts and old habits are indeed the invisible force obstructing the smooth development old habits are not eliminated, it will be ditficult for the workers to devote themselves itiative." Luo Gan appeals to workers to actively eliminate old concepts not corresponding to the retorm. ple's Daily, 4 August 1986)
Othe general Federation of Trade Unions published a "random sampling survey" which simply said that "94.78% staunchly support or basically support the reform, and 92.95% staunchly support or basically support the open door policy." (When Hui Bao, 14 October 1986).
It is quite generally accepted that China needs reform and needs to open to the west. Yet, serious differences exist concer-
what should be reformed and how should the reform be conducted, not only
Othe rulers and the people, The report did not state the concrete political questions, put to those interviewed. So it is difficult to deduce much from the above statistics. Neverthless, the report also said that the workers interviewed "strongly demand the right of decision, of electing the factory
Cof assessing the recalling dress, and also of democratic manage-
Thus, the results of this random sampling survey conducted from March to May
does not overturn the "broad workers" by the depu-
chair of the General Federation of
The rejection of certain concrete reform
"streong demand" for democratic rights in the functioning of the economy indicate a rejection of the growth
forces. It signifies a new awakening of the Chinese proletariat.
15 October 1986 October Review, GPO Box 10144,
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