(China Daily)
Updated: 2007-11-12 07:56

Huawei Technologies Co Ltd agreed to suspend its controversial "voluntary resignation" scheme after holding talks with trade unions, the All China Federation of Trade Unions (ACFTU) said on Saturday.

The ACFTU said it had called on China's biggest maker of telecommunications network equipment to protect workers' interests after its plan sparked fears the company was trying to sidestep a new labor law.

The ACFTU and unions in Guangdong Province and Shenzhen called on Huawei to solicit workers' opinions and respect their rights while making regulations that will benefit them.

Huawei will soon hold a workers' conference to review the interim regulations, sources with the ACFTU said on Saturday. A company source confirmed on condition of anonymity that a consensus had been reached with the trade unions.

He said the company had agreed to suspend the plan, but the exact date for when the decision will become final will be decided after workers' have their say at the conference.

Huawei had called on staff members who had worked for the company for eight consecutive years to hand in "voluntary resignations", according to the Nanfang Daily, a newspaper in Guangdong Province, where Huawei is headquartered.

The staff would then have to compete for their posts, and sign new labor contracts with the firm upon being re-hired. Those who were not re-hired would receive compensation.

Critics said Huawei was attempting to avoid signing open contracts with its employees before the new labor contract law comes into effect on January 1.

Under the law, which was adopted by the Standing Committee of the National People's Congress, the top legislature, in June, employees who have worked for an employer for 10 consecutive years will be entitled to sign labor contracts that have no fixed terms should both sides agree to do so.

The new law will effectively make "veteran" workers into "permanent" employees, except in circumstances of willful resignation or retirement.

The ACFTU also called for better publicity of the new labor contract law and closer supervision of companies to avoid similar cases occurring.

Xinhua