China Drafting Salary Law With Trade Unions

Zhang Mingqi, the vice chairman of All China Federation of Trade Unions, said at a recent press conference that China is drafting a law on salary increases.

Zhang stated that the requirement to establish a salary increase process was put forward in last year's Government Work Report. This process requires companies to increase their employee's salaries for their employees in consultation with trade unions in times of good economic conditions. Companies should also continue this process when times are difficult and they should refrain from using the process to reduce employees salaries except through consultation with the trade unions.

Zhang stated that a process for collective bargaining on salaries should be used as effectively as possible given the current economic situation. This requirement is to be incorporated in the salary law which is still being drafted, and it is not yet at the point where public opinions will be solicited.

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