To many foreign investors, a trade union in China can be a troublesome
entity.
But that is not necessarily true in Guangzhou Development Zone.
About 60 per cent of the more than 1,000 foreign-invested enterprises there
have set up trade unions.
That compares to 53.1 per cent in Guangdong Province and 25 per cent in the
nation as a whole.
Several of the unions are invested in by some of the world's top 500
multinational companies. These include the P&G (China) Investment Co Ltd,
Delphi Packard Electric (Guangzhou) Co Ltd, Amway China Ltd, Mitsubishi Electric
(Guangzhou) Hualing Compressor Co Ltd, VA TECH Elin Transformer Guangzhou Co Ltd
and ThyssenKrupp Stainless International (Guangzhou) Ltd.
Zeng Fanqiang, chairman of the zone's federations of trade unions, attributed
the higher percentage of trade unions in the area to the fact that
foreign-invested firms have a better understanding of them.
He said that trade unions working with foreign firms have played an effective
role doing such things as improving relations between management and employees
and offering training and entertainment programmes for members. They also
protect the legal interests of both union members and the enterprises.
"A growing number of foreign investors are becoming more willing to set up
trade unions in the zone," he said.
Many firms sent representatives to a recent seminar on trade union
establishment.
Zhang Zhongmin, trade union chairman of VA TECH Elin Transformer Guangzhou Co
Ltd invested in by the German industrial giant Siemens said a trade union in a
foreign-funded enterprise can help build up employee trust, affection and
loyalty.
This can all be conducive to a harmonious relationship between bosses and
workers.
"By organizing activities in which union members can participate, a trade
union can help to make a company even more attractive to its staff and lower the
resignation rate of workers," Zhang added.
Vice-chairman of the Guangdong Federation of Trade Unions Kong Xianghong said
the province will try to make the advantages of trade unions better known among
foreign-funded enterprises and encourage more firms to set them up.
"Some firms are reluctant to set up trade unions. This is either because they
have been influenced by the opposition of trade unions in their own countries or
because they are unwilling to earmark funds for trade unions, equal to 2 per
cent of a company's salary expenses," the vice-chairman explained.
The province aims to see trade unions in 60 per cent of the foreign-invested
enterprises this year, and over 80 per cent next year.
Next year the province also aims to set up trade unions in all firms funded
by the world's top 500 multinationals.
China's law on foreign-invested enterprises states that a foreign-invested
enterprise should support the activities of its trade union and protect the
legal interests of its members.
