80% of private firms violate employee rights
By Liu Li (China Daily)
Updated: 2005-12-29 06:43

Although it is not known if foreign companies were part of the survey, overseas-funded clothing enterprises, for example, last year accounted for 45.34 per cent of the total output value in the sector. There are more than 2 million private firms in China.

The legislators found that even among the fewer than 20 per cent of private companies which signed contracts with employees, the duration was mostly less than one year.

"The employers refused to sign long-term contracts to avoid legal obligations," He said.

And many contracts only prescribed the obligations of employees and the rights of employers.

"Some contracts even stated that the employer holds no responsibility for the illness or even death of its employees, even when injuries occur in the workplace," she said.

She urged the central government to adopt effective measures so that all companies are compelled to sign contracts with employees.

"As a contract is a legal and binding agreement that states the obligations and rights of employers and employees, it is of fundamental importance to safeguard the interests of labourers," she said.

The vice-chairwoman urged the implementation of a registration system when hiring employees, with the signing of a contract as a mandatory component.

In addition, legislators also found problems with salary payment and social insurance.

According to an investigation in April, 13 per cent of employees' salaries were lower than the national minimum salary and 8 per cent of employees surveyed did not receive payments on time or at all. Many private companies also refused to insure their employees.

Figures from the All-China Federation of Trade Unions show that more than 100 billion yuan (US$12.1 billion) was owed in unpaid wages to migrant labourers in China last year.

(China Daily 12/29/2005 page1)