Download Employment, Wage and Union`s Participation in China

Employment, Wage
and Union’s
Participation in China
Mr. Chen Jieping, Deputy Director General of
Social Security Department, ACFTU.
May l5, 2013, Beijing
E-mail: [email protected]
1
Employment, Wage and Union’s
Participation in China
Outline
■Economic Growth, Employment and Wage
■Union’s Participation
■Problems and Challenges
2
Economic Growth, Employment and
Wage
■Economic Growth, Employment and Wage
◆Background
◆Economic Growth
◆Employment
◆Wage
◆Social Security
3
Economic Growth, Employment and
Wage
Background
Area of Territory
9,600,000sq.km
4
Economic Growth, Employment and
Wage
Background
According to the data issued by the State Statistical Bureau，at the end 2012.
▲Total Population
1354.04 (million persons)
● Urban
711.82 (million persons) 52.61%
●Rural
642.22(million persons) 47.39%
▲population over 60 years-old
179.54 (million persons) 13.26%
▲population over 65 years-old
120.10 (million persons)
▲natural growth rate 2000-2010
5.72‰
▲children per woman
1.49(Children)
▲ illiteracy rate
4.08%
▲life of expectancy
8.87%
74.83(Years Old)
5
Economic Growth, Employment and
Wage
Background
▲number of Labor, 2011
785.79（million persons)
▲number of employed in the whole society, 2011
764.20 (million persons)
▲ number of employed in urban area, 2011
359.24(million persons)
▲ number of union members, 2012
289.30 (million persons)
6
Economic Growth, Employment and
Wage
Economic Growth
With reform and opening-up, China has witnessed high economic growth rate,
low unemployment rate, rapidly increasing wage and sustained improvement of
people’s living standard since early 1980s.
7
Economic Growth, Employment and
Wage
Economic Growth
The real GDP growth rate from 1993-2012
In past 3 decades, the real average annual growth rate of GDP is 10.2%. China’s GDP
was 1.72％ of the world GDP in 1980 and 10.5% in 2012.
8
Economic Growth, Employment and
Wage
Economic Growth
V-type Recovery
Despite of the impact of international financial crisis, the average growth rate between
2008-2012 still stood at 9.5％.
9
Economic Growth, Employment and
Wage
Economic Growth
Annual per capital GDP in term of nominal RMB and USD, 1993-2012
years
Annual per
capital GDP
(RMB)
Calculated in
USD
years
Annual per capital
GDP (RMB)
Calculated in
USD
1993
2998
520
2003
10542
1274
1994
4044
469
2004
12336
1490
1995
5046
604
2005
14185
1732
1996
5846
703
2006
16500
2070
1997
6420
774
2007
20169
2652
1998
6796
821
2008
23708
3414
1999
7159
865
2009
25608
3749
2000
7858
949
2010
30015
4434
2001
8622
1042
2011
35189
5450
2002
9398
1135
2012
38449
6091
In 1978, when the reform and opening-up policy was just initiated in China, the
per capita GDP was typical of low income countries at US$302 per annum. By the
end of 2012, as the second biggest economy in the world, China’s total GDP hit
US$8.25 trillion, and the per capita GDP went up by 20 times to US$6091 per
annum, equals to middle income countries
10
Economic Growth, Employment and
Wage
Employment
New jobs were created in urban area, 2007-2011, 10,000 persons
1300
1266
1250
1221
1200
1204
1168
1150
1113
1102
1100
1050
1000
2007
2008
2009
2010
2011
2012
new jobs were created in urban areas
During 2008－2012，58 million new jobs had been created in urban areas. The
registered urban unemployment rate was 4.1 percent by the end of 2011 and 2012.
11
Economic Growth, Employment and
Wage
Employment
Economically active population, total labor nationwide and employed labor in urban area,
2007-11, 10,000 persons.
12
Economic Growth, Employment and
Wage
Employment
Industrial structure of labor, 2007-11, %
13
Economic Growth, Employment and
Wage
Wage
Aggregated wage of the urban employees in 2007 and 2011
The aggregated wage of the urban employees in 2011 is RMB5995.47 billion,
an increase of 103.4% from RMB2947.15 billion in 2007.
14
Economic Growth, Employment and
Wage
Wage
Annual average wage in term of nominal RMB and USD, 1993-2012
years
Annual
average
wage (RMB)
Calculated
in USD
years
Annual
average
wage (RMB)
Calculated in
USD
1993
3236
562
2003
14040
1696
1994
4538
527
2004
16024
1936
1995
5500
659
2005
18364
2242
1996
6210
747
2006
21007
2635
1997
6470
781
2007
24932
3281
1998
7479
903
2008
29229
4209
1999
8346
1008
2009
32763
4797
2000
9371
1132
2010
37147
5488
2001
10870
1313
2011
42452
6738
2002
12422
1501
2012
49200
7847
Average wage of labor per annum rose from US$360 in 1978 to US$7847 in 2012,
21.8 times in term of nominal US dollars.
15
Economic Growth, Employment and
Wage
Wage
Real Wage Increase Rate and Real GDP Growth Rate,1992-2012
Wage Increase Rate ％
Years
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Real GDP Growth Rate ％
6.5
2.8
7.7
2.8
3.8
1.1
7.2
13.1
11.4
15.2
15.5
12
10.5
12.8
12.7
13.6
11
13
10
8.5
10.2
14.2
14
13.1
10.9
10
9.3
7.8
7.6
8.4
8.3
9.1
10
10.1
11.3
12.7
14.2
9.6
9.2
10.4
9.2
8.1
16
Economic Growth, Employment and
Wage
Wage
The growth rate of average wage and real GDP growth rate from 2007－2011
In the period of 2008-2012, although the Global Financial Crisis had severe effect on
China’s economy and led to two waves of economic fluctuation, the real average wage
increase rate per annum was still as high as 10%.
17
Economic Growth, Employment and
Wage
Wage
Annual average global
real wage growth 200611,%
▲ Global wage growth remains far below pre-crisis level.
▲ Without China, global wages have been almost flat in 2008-09 and 2011.
18
▲China’s wage
growth carries big
weight for Asian
figure.
▲If China is
excluded, real wages
in the rest of Asia
are below
2007 level
Economic Growth, Employment and
Wage
Wage
Annual average real wage growth 2006-11,%
19
Economic Growth, Employment and
Wage
Social Security
Total participants of each social insurance category in recent 5 years, 10,000 persons.
20
Economic Growth, Employment and
Wage
Social Security
Total revenue and payment of The Social Insurance Fund in recent 5 years, 10,000 RMB
By the end of 2011, total accumulative surplus of the National
Social Insurance Fund hit RMB2800 billion.
21
Economic Growth, Employment and
Wage
What’s behind China’s strong performance during the crisis?
▲ Industrialization, Urbanization and Globalization
▲Good Governance
●Guided by The Scientific Development Outlook
●Employment priority strategy
●Ensuring the improvement of people’s livelihood
●Prudent fiscal and monetary policies etc.
▲ Good Fortune
22
Union’s Participation
■Union’s Participation
◆Engagement in legislation and policy-making procedures
◆Supervision on the enforcement of national labor standards
◆Member service and assistance
◆Collective negotiation
23
Union’s Participation
Legislation and policing
◆Engagement in legislation and policy-making procedures
▲ Mechanism and platforms for union’s participation
●Union’s proposals to the People's Congress and the People's Political
Consultative Conference.
●National and local tripartite committee.
●Joint conferences between government departments and Unions.
●Union’s representatives participating in Specific Drafting Work Groups
for legislation and policy-making.
●Union’s legislative lobbying to all stakeholders.
24
Union’s Participation
Legislation and policing
▲ACFTU’s Engagement in drafting procedure of labor laws and
economic policy-making
● Law of Labor Contract, 2007
● Employment Promotion Law, 2007
● The regulation on annual salary of SOEs’ top executives,2008
● Law of Social Insurance, 2010
● Proactive Employment Policy Package 1.0, 2002-2003
● Proactive Employment Policy Package 2.0, 2008-2009
● Law of Labor Contract (amendment）, 2012
●The Guidance to Deepen Reforming of Income Distribution System,
January, 2013, issued by The State Council.
25
Union’s Participation
Legislation and policing
▲Example: Union’s participation in the policy-making and enforcement
of minimum wage system
●In early 1990s, ACFTU had a series of studies on wage issues and
was the first to suggest the Chinese People’s Congress (NPC) to adopt
a law on minimum wage.
●In 1993，the former Ministry of Labor issued the Provision on
Enterprise Minimum Wage.
● Article 48 of the Labor Law (1994) stipulates that the country shall
adopt the minimum wage mechanism and the minimum wage
standards will be set by provincial government and reported to the
State Council for documentation.
●Adjustment frequency is defined as “at least once every two years”.
Usually, adjustment requirement is initiated by provincial trade
unions.
● Joint decision by the provincial government and the trade union
and employer organization at the same level.
26
Union’s Participation
Supervision
◆Supervision on the enforcement of national labor standards
The Labor Law and The Trade Union Law stipulated
that, trade union organizations at various levels have the
legal right to monitor the implementation of labor laws and
relevant socio-economic policies and request the local labor
department to penalize those employers who violates the
provisions.
27
Union’s Participation
Supervision
◆Supervision on the enforcement of national labor standards
▲ACFTU and it’s local affiliates, in conjunction with the People’s Congress
and government departments, launch Specific Inspection Action on the
Enforcement of Labor Laws every year.
▲In accordance with tripartite framework, the Social Insurance Supervision
Committees established at national, provincial or municipal level, governing
the revenue, payment and investment of the Social Insurance Fund.
▲By the end of 2011, nearly 540,000 union’s supervision bodies on labor law
enforcement established at grass-roots level, formed by worker representatives
in enterprises and public units. These bodies accepted 63,000 labor law
violation cases in 2011, of which 35,000 were handled solely by trade unions
while 16,000 were handed to local labor inspection authorities.
28
Union’s Participation
Service and assistance
◆Member service and assistance
ACFTU’s Aid & Service Centers for Members
29
Union’s Participation
Service and assistance
▲ACFTU’s Aid & Service Centers for Members
●19 provincial centers, 461 municipal centers and 2964 county level
centers had been established.
●The aid centers provide needy workers a variety of services and
economic aids, such as living subsidies, vocational training, job
recommendation, children’s schooling subsidies, healthcare assistance and
legal assistance.
●The assistance fund was financed from government budget, trade
union funds and social donations.
●Staff of the aid & service centers are constitutive of union cadres,
volunteers or recruited college graduates and laid-off workers.
30
Union’s Participation
Service and assistance
The structure of aid & service fund resource, 2011
31
Union’s Participation
Service and assistance
On May. 16, 2006, Former President Hu Jintao visited Kunming
municipal aid center for needy workers. He was kindly talking with
laundresses.
32
Union’s Participation
Service and assistance
A new aid center opened by Mianyang municipal trade union council,
Sichuan Province.
33
Union’s Participation
Service and assistance
▲ACFTU’s Skill Upgrading
● By the end of 2011, there were 2048 technological colleges or schools
run by trade unions, and training courses involving more than 200 crafts
can be available.
● In 2011, 2.81 million workers attended skill training courses in union’s
colleges or schools .
● All trainings are free to workers. colleges or schools got revenue from
government budget on the mode of “public service outsourcing”, or
charged by enterprises.
34
Union’s Participation
Service and assistance
A group of workers were having senior electrician class in Nanchong
Worker’s Technology College, Sichuan Province
35
Union’s Participation
Service and assistance
▲ACFTU’s Job Agencies
●At the end of 2012, there were 1,720 legally registered job agencies run
by trade unions.
●In 2012, 1502 thousand laid-off workers and migrant workers
got their jobs under the recommendation of trade union’s
agencies.
●All services are free to workers. Trade unions’ job agencies
obtain subsidies from government budget on the mode of
“public service outsourcing”.
36
Union’s Participation
Service and assistance
On February, 21, 2013, The Employment Assistance Month of National Trade Union
was in progress in Guiyang, Guizhou Province. Such program is held yearly and help 560
thousand job seekers to get their jobs in 2012.
37
Union’s Participation
Service and assistance
A job agency opened by Guiyang municipal trade union council.
38
Union’s Participation
Service and assistance
▲ ACFTU’s Yearly Joint Employment Assistance Actions with Social
Partners
● The Nationwide Recruit Week of Private Enterprises－－the Ministry
of Human Resource and Social Security, All China Federation of Trade
Unions，National association of industry and commerce.
●Spring Breeze Action－－ the Ministry of Human Resource and Social
Security, All China Federation of Trade Unions， All China Women's
Federation.
●Sunshine Employment Action for University/College Graduates－－ All
China Federation of Trade Unions and the Ministry of Education.
●The Promoting Project of Household services－－All China Federation
of Trade Unions, the Ministry of Finance and the Ministry of Commerce.
39
Union’s Participation
Service and assistance
Leaders of Wuhan municipal trade union council were granting micro credit
to laid off worker who prepared to start a small business.
In 2012, ACFTU’s Micro-Financial Scheme involved a total loan of RMB2.04
billion, helped 36600 persons to start their owned small or micro business, and
created nearly 96,000 jobs.
40
Union’s Participation
Collective negotiation
◆Collective negotiation
▲By the end of 2012, there had been 1.229 million collective
wage contracts nationwide, covering 3.081 million enterprises
and 150 million employees (nearly 40% of total employed
labor in urban area).
41
Union’s Participation
Collective negotiation
Numbers of Employees Covered by Specialized
Collective Wage Contract in 2007-2012
160000000
150295236
140000000
117241207
120000000
100000000
75657331
80000000
61776321
60000000
40000000
51101198
39685737
20000000
0
2007
2008
2009
2010
2011
2012
42
Union’s Participation
Collective negotiation
Numbers of Enterprises Covered by Specialized
Collective Wage Contract in 2007-2012
3500000
3081289
3000000
2500000
1951199
2000000
1500000
1115874
901665
1000000
774501
622063
500000
0
2007
2008
2009
2010
2011
2012
43
Problems and Challenges
■Problems and Challenges
◆Current Problems
◆Emerging and Potential Challenges
44
Problems and Challenges
Current Problems
▲Structural employment conflicts are highlighting
● Excessive supply of white-collars: There are nearly 7 million students
graduate from universities and colleges every year .
● Shortage of blue-collars: Ordinary Labor Shortage in manufactures
and Skilled Labor Shortage in high-tech industries expands to inland
from coastal areas .
●There are nearly 12 million laid-off workers at present nationwide. For
an aged and unskilled unemployed person, it’s almost hopeless to get a
new job.
45
Problems and Challenges
Current Problems
▲ Income Distribution Disparity is largely widening
Chinese Gini Coefficient, 2003-12.
Years
2003
2004
2005
2006
2007
2008
Gini
Coefficient
0.479
0.473
0.485
0.487
0.484 0.491
2009
2010
0.490 0.481
2011
0.477 0.474
● Lying beyond the alertness line of income disparity underlined by UN
(Gini Coefficient =0.4) .
●Slow fall in the index value since 2009
46
2012
Problems and Challenges
Current Problems
▲labor’s share in national income distribution continues to decline,
● Wage increase have lagged behind productivity growth.
● Steep fall in labor share since 2002.
47
Problems and Challenges
Current Problems
▲Low level of minimum wage standards
Ratios of minimum wage standards in average wage in 31 provinces
(autonomous regions, municipalities)
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
48
Beijing
Shanghai
Tianjin
Xizang
Anhui
Ningxia
Guizhou
Qinghai
Jiangxi
Shanxi
Chongqing
Sichuan
Shanxi
Liaoning
Guangdong
Hainan
Zhejiang
Jiangsu
Inner Mongolia
Guangxi
Hubei
Gangsu
Fujian
Henan
Yunnan
Shandong
Hunan
Jilin
Xinjiang
Heilongjiang
Hebei
0.00%
Problems and Challenges
Current Problems
▲ Vulnerable working groups lack appropriate social protection
● There are 275million migrant workers from domestic rural areas and
90 million informal workers in urban areas at present.
● The majority of unskilled migrant workers in labor-intensive, exportoriented, low-valued industries and small-and-medium-sized enterprises
are still suffering from overtime work, low salary and an uneasy urban
life.
●For informal workers, less unionization and low-covered by social
security network.
49
Problems and Challenges
Challenges
▲The slowdown of economic growth：Step in a stage of “7% GDP
Growth”
12
10.7
10.5
10
10.4
9.2
9.1
Real GDP
Growth Rate
2008-2013, %
8
8.1
7.9
7.6
7.9
7.4
7.6
6.9
6
6.2
4
2
0
Third Fourth First Second Third Fourth
Quarter Quarter Quarter Quarter Quarter Quarter
of 2008 of 2008 of 2009 of 2009 of 2009 of 2009
2010
2011
First Second Third Fourth First
Quarter Quarter Quarter Quarter Quarter
of 2012 of 2012 of 2012 of 2012 of 2013
50
Problems and Challenges
Challenges
▲Industrial Upgrading and transformation
●Direct driving force: Rapid rising labor costs in coastal manufacturing
zones. Initiative respond of government aims to enhance economic growth
quality, optimize economic structure and eliminate economic bubbles.
●Positive impacts: more high-valued products, more high quality jobs,
higher productivity and lower carbon emission.
●Negative impacts: less job opportunities and more structural
unemployment probably.
51
Problems and Challenges
Challenges
Industrial upgrading and transformation in China: Is a
caterpillar metamorphosing into a beautiful butterfly?
52
Problems and Challenges
Challenges
▲Aging population
Chinese dependency ratios, UNDP, 2010.
● With the adoption
of family planning
since 1970s, aging
population has been
accelerating more
rapidly than any
country in the world.
●Population
dividends will be used
up soon and the
burden of social
security will be
accumulated.
■child dependency ratios ■ senior dependency ratios
53
Problems and Challenges
Challenges
▲Middle income trap
●According to the definition of the World Bank, middle income trap
occurs when per capita GDP ranged within US$3,000-10,000 for a
developing country.
●Historically, only a few of developing countries or regions(South Korea,
Singapore, Hongkong, Chinese Taiwan, Poland and Israel) had
successfully leaped over the trap.
●China’s per capital GDP, US$ 3414 in 2008, US$ 6091 in 2012.
●The 18th National Representative Conference of CCP put forward The
Scheme of Double Per Capita GDP and Double Per capita Income of
household 2010-2020 which targets to enable China to leap over the
middle-income trap.
54
Problems and Challenges
Challenges
▲ Re-industrialization of developed economies and the prevalence of
international trade protectionism
● Manufactures of developed economies have their advantages in
technology, brand, industrial standard and marketing network.
●Quantitative easing monetary policy of USA, EU and Japan.
● China-related international trade disputes are increasing continuously.
55
Employment, Wage and Union’s
Participation in China
Thanks For
Your
Attentions！
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