News

China in spotlight, as Maplecroft launches first in a series of “Labour Standards Reports”

12/08/2009

China - Labour Standards Report

The Labour Standards Report for China, the first in a series to be produced by Maplecroft, analyses and compares the major issues at both national and provincial levels. Key areas of focus include labour rights and protection, working hours, compensation, health and safety, freedom of association and collective bargaining, labour contracts, discrimination, forced labour and child labour.

The 25 page document also examines the 100 most significant labour protests between 2007/2008 and analyses laws, regulations, minimum wage and average salaries right down to the local state level.

Workplace fatalities were up from 90,925 in 2007 to 91,172 in 2008

China does possess comprehensive labour laws, but inadequate enforcement is widespread, especially in rural areas. Local labour departments do not have the resources to properly monitor and act upon labour laws and insufficient communication between the national, state and provincial labour departments makes it difficult to enforce new laws in a timely manner.

Areas of concern are highlighted by maps and indices provided by Maplecroft’s Global Risks Portfolio, which rates China as extreme risk for working conditions, child labour, health and safety, freedom of association and collective bargaining and forced labour.

Migrant workers are found to be especially vulnerable in the labour market, suffering extreme working conditions, lack of contracts, long working hours and high levels of discrimination against women. Migrants are also often victims of forced labour, very low wages and are not protected by the law.

An increase in tense labour disputes over the past year has also led to labour related protests stopping work and production.

In addition, the Labour Standards Report for China provides a country overview giving detailed information on China’s economy, labour statistics, the ratification of ILO conventions and relevant recent events. Maps of the Special Economic Zones, Export Processing Zones and the Free Trade Zones are included and a sub-national map provides a localised labour rights risk profile for the entire country, which charts specific locations of reported labour rights violations, allowing businesses to plot their risk exposures at the local level.

In April 2008 up to 1,000 children were found working in forced labour conditions in factories and workshops in Dongguan

“China represents a unique opportunity for business, both in term of opening new markets and reducing labour costs. Maplecroft’s new Labour Standards Report for China provides the in-depth analysis companies need to navigate national law and make strategic and responsible decisions about how to manage risks in their own operations and supply chains.”

-Dr Kevin Franklin, Director of Research Strategy