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China reads draft labor dispute law as unrest continues to grow - Xinhua


Published :
Mon, 27 Aug 2007 04:49
By : Agencies
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BEIJING (XFN-ASIA) - China's top legislature has started to review the draft law on labor dispute mediation and arbitration as the number of labor disputes continues to increase across the country, the official Xinhua news agency said.

The draft law was submitted to senior members of the National People's Congress (NPC), or China's top legislature, for the first reading.

According to NPC statistics, the number of recorded labor disputes has grown 27.3 pct annually between 1987 and 2005, while dispute arbitration organizations at various levels dealt with 1.72 mln labor dispute cases involving 5.32 mln employees over the same period.

The draft bill will strengthen mediation and improve arbitration so as to help solve labor disputes without going to court, Xinhua said, citing Xin Chunying, vice chairman of the Legislative Affairs Commission of the NPC Standing Committee.

The draft bill states that litigants in a labor dispute can turn to the corporate mediation committee or the grassroots people's labor disputes mediation organization.

It also states that labor disputes concerning pay, medical fees from job-related injuries, compensation, pension whose sum does not exceed 12 months of local minimum monthly wages could be solved by arbitration.

Labor disputes on working time, holidays, social insurance and collective contracts could also be solved by arbitration with legal effects.

Xin noted that arbitration organizations face several other problems including a shortage of professional staff, a lack of credibility, and a lengthy as well as high cost arbitration process.

fergus.naughton@xinhuafinance.com

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