Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
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! 56