Exploring the Improvement of Labor Standards in China : A Case Study Based on Fieldwork Conducted in Three Enterprises in Xiaoshan District of Hangzhou City in Zhejiang Province

Abstract

China’s rapid economic development during the last 30 years has been largely driven by the employment of cheap labor in labor-intensive industries. Millions of farmers have migrated to the bigger cities to work in the modern economy. Cheap labor has turned China into the biggest exporter and the second biggest economy in the world. However, it has also come at great costs. Chinese workers have been working for many hours under rough conditions and for a lousy pay. Now, signs are indicating that the workers no longer are willing to settle for anything. The number of labor disputes has risen at a rapid pace in recent years and factory managers on the east coast are reporting that they are having a harder time finding workers. Both the government as well as factory managers are now trying to find ways to maintain social stability as well as creating incentives to keep workers in the manufacturing industries. This thesis explores some determinants for improvement of labor standards in China, by focusing on the newly established labor laws, the role of the trade union and collective bargaining, CSR and decrease in surplus labor. It is a qualitative case study and the main analysis is based on fieldwork conducted within three enterprises in Xiaoshan in Zhejiang province. The data collected during my fieldwork consists of in-depth interviews with workers, trade union representatives and managers, participant observation, and primary literary sources. All in all, the data collected suggests that the decrease in surplus labor, and the lack of skilled workers, gives some workers more bargaining power, however, this is not the case for all. I will argue that the weak position of the trade union makes it challenging to improve the situation for the workforce as a whole.