Chapter 16
Employment Relations in Some
Asia Pacific Countries
Australia
• Workplace Relations Act (1996)
• - employers and employees directly
responsible for IR decision
• - reduce role of third party intervention
• - guide AIRC on the award system that
determines pay and conditions
Australian Workplace Agreement
• Individual agreement between employers
and their employees
• Agreement may be reached collectively,
but must be signed individually
• Employees may appoint a bargaining
agent (e.g. union) but no uninvited union
involvement
• AIRC may help parties to reach agreement
CHINA
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Economic reforms in the late 1970s
ER institutions restored (ACFTU in 1978)
1980s: 3 new systems
- labour contract
- floating wage
- management engagement
Tripartite System
National level
- Ministry of Labour
- Chinese Enterprise Directors’ Assn
- ACFTU (representing workers)
Similar arrangements at province, county
and city levels
Role of Trade Unions
• Under Trade Union Law
• - protect rights and interests of workers
In SOEs, workers’ congresses are the main
bodies representing workers at the
enterprise level
Labour Law
• Law was introduced in 1995
17 employment regulations dealing with:
- minimum wage, work hours, inspection,
compensation, safety, training etc
Workers may conclude collective contract
with enterprise on employment issues
Dispute Settlement
• Rules on Handling Enterprises Labour
Disputes
System includes procedures for:
• - mediation
• - arbitration
• - judicial settlement
HONG KONG
• Has autonomy under “one country two
systems” arrangement
• - retain laws from British legal system
Employment relations characterized by
- non-intervention government policy
Employment Ordinance
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Deal with issues:
- employment contract
- payment of wages
- rest days, holidays, annual leave
- sick pay, maternity leave and protection
- long service pay, severance pay
- job security
- union discrimination
Dispute Settlement
Settled under Labour Tribunal Ordinance
- quick, inexpensive and informal to settle
claims arising from Individual contrracts
Minor Employment Adjudication Board deals
with minor claims – less legalistic than
Tribunal
Trade Union Ordinance
Covers issues:
- trade union registration
- procedure for merger & acquisition
- members’ rights and freedom
- picketing and other industrial action
Labour Relations Ordinance
Prescribes procedure for third party
intervention in disputes e.g. conciliation
and arbitration
If dispute affects HK economy, livelihood of
people, creates public risk, Chief
Executive can declare a cooling-off period
INDIA
Many labour laws at central and state levels
5 categories
a) Working conditions
b) Wages and monetary benefits
c) Industrial relations
d) Social security
e) Miscellaneous
Trade Unions
Started after World War I
- e.g. All India Trade Union Congress
- At local, state and national levels
INTUC formed in 1947
- Influenced by Gandhian ideals of truth, nonviolence, purity of means and dignity of labour
- to counter communist influence of AITUC
Trade Unions Act
• Provides for registration of unions, but no
provision at national level for the
recognition of unions by employers
- Most unions are small, financially weak
and supported by political parties
- Many unions with one company, resulting
in rivalry and are ineffective
Employer Organisations
• 3-tier structure
- Llocal associations
- Industrial associations
- All-India federations
Major National Organizations
A) All India Organization of Industrial
Employers (AIEO)
founded by Federation of India Chamber of Commerce
and Industry in New Delhi
B) Employers Federation of India (EFI)
founded by Associated Chamber of Commerce in
Mumbai
C) Standing Conference of Public
Enterprises (SCOPE)
set up by central public enterprises in New Delhi
Council of Indian Employers
• Loose federated umbrella organization
- formed by the 3 major national
associations
- deals with government & international
organizations (eg ILO)
Employer Organization - Role
• Protect interests of members
• Provide information on labour laws
• Encourage harmony in employment
relations system
Attitude Towards Union
Traditional employers
- paternalistic, hostile towards unions
Companies with modern management
- Accept unions as partners in employment
relations system
Role of Government
• Enact employment laws to ensure
harmony between employers & unions
• Provide legal and administration
mechanism for collective bargaining and
for settling disputes
Industrial Dispute Act
• Provides legal means (conciliation,
arbitration and adjudication) to settle
disputes
• National Arbitration Board strengthens
system of voluntary arbitration
• 3-tier adjudication system: Labour Courts,
Industrial Tribunal and National Tribunals
Collective Bargaining
• Confrontation process as there is no legal
provision at the national level to recognise
unions
• Process becomes difficult as there are
many unions within same company
• Unions are weak and fragmented
• Unequal strength results in hostility during
negotiation
Union Recognition
No national law for union recognition
Legal provisions in some states
Methods to determine union representation:
a) Code of discipline
b) Secret ballot
c) Check-off system
d) Membership verification
Other Employment Laws
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Employment Exchanges Act
Factories Act
Equal Remuneration Act
Employees State Insurance Act
Payment of Gratuity Act
Payment of Bonus Act
JAPAN
Employment relations:
- Life time employment
- seniority based system
Dismissal is seldom done because employer
must have good reasons
Reasons for Dismissal
• Financial problems
• Documenting steps taken to avoid
dismissal
• Objective and clear dismissal standards
• Reasons must be explained to workers to
seek their consent
Labour Standards Act
Regulates working conditions
- labourers’ charter
- wages
- work hours
- minimum labour standards
Employers must up work rules and explain
to employees
Trade Union Act
Workers have right to form and join union
Union may negotiate contract with employer
Enterprises Union
• Common in Japan
• Effectiveness depends on corporate
culture within the company
• There must be mutual interest and
company identity among employees
Spring Struggle (Shunto)
• Unique feature in Japanese employment
relations started in 1955
• Annual wage increase drive conducted by
unions from March to May
• Sets pattern of pay and benefit increase
Dispute Settlement
• Under Labour Relations Adjustment Law,
unions and management should first settle
disputes between themselves
• If settlement fails, they can ask for support
from Labour Commission or seek
arbitration
SOUTH KOREA
• 1996, Presidential Commission on
Industrial Relations Reform was set up
• Purpose: improve labour standards up to
the level required by ILO and OECD
New Employment Laws
• Trade Union Act and Labour Dispute
Adjustment Act were merged to become
Trade Union and Labour Relations
Adjustment Act
• ban on third party invention was lifted
• employers not obliged to pay wages
during strike
• Mediation is compulsory before any
industrial action is taken
Other Employment Laws
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Labour Standards Act
Industrial Safety and Health Act
Minimum Wage Act
Equal Employment Act
Industrial Accident Compensation Insurance Act
Employee Welfare Fund Act
Aged Employment Promotion Act
Employment Insurance Act