Indian TU Delegation In China

M K Pandhe

THE All China Federation of Trade Unions (ACFTU) invited a high power delegation from India in the middle of September 2004. CITU, INTUC, BMS and AITUC were invited to send 2 members each in the delegation.

The CITU decided to nominate me and Kashmir Singh Thakur, general secretary, Himachal Pradesh State Committee of CITU as members of the delegation. The BMS nominated its president, Hasubhai Dave and deputy general secretary, Jagdish Awasthi. The AITUC was represented by Unniyal and Brij Mohan, both belonging to Petroleum Workers Union, Delhi. The INTUC could send only one delegate, Shankar Das, leader of Zinc workers union. The other delegate could not go due to passport difficulties.

The delegation left for China on September 15. It visited Beijing, Chngsha and Shanghai as per programme chalked out by the ACFTU. On September 16, the delegation visited forbidden city and on September 17 Great Wall of China. On September 18 it visited ancient University of Yuelu where Mao Tse Tung studied. The place where Mao was studying in the natural surrounding has been specially preserved by the authorities. On September 19 a visit to the state owned Beshiny Cigarette Factory was arranged. The delegation visited the housing quarter of a model employee to study the family life of workers. We left for Shanghai on the September 19 evening.

On September 20 the delegation visited foreign owned Leica Microsystems Ltd, Shanghai, which manufactures educational microscope, and laboratory microscope used in hospitals, etc. On September 21 the delegation had sightseeing and free time for marketing etc. In the evening the delegation left for Delhi.

In every city, the top leaders of trade unions arranged banquets in honour of the delegation where detailed discussions and exchange of views on problems of mutual interest had taken place.

The delegation received VIP treatment everywhere and members were given cordial reception in all the places. Everywhere the leadership of Chinese trade unions showed extreme importance for the friendly ties between the trade union movements of India and China. ACFTU leadership appreciated the unity reflected by joint delegation from India and keenness was expressed to strengthen the bonds of friendship between the trade union movement of two most populous countries of the world. At every stage the point was emphasised that Indian and Chinese people constitute 40 per cent of the world population!

On September 16 afternoon we were taken to the headquarters of ACFTU to meet Xu Zhenghuan, vice chairman of ACFTU and Fan Siyuing from the headquarters of ACFTU. Zhang Tao and Tan Tao of the International Liaison Department of ACFTU were also present in the meeting.

PROBLEMS OF GROWTH AND DEVELOPMENT

Xu Zhenghuan explained to the delegation the problems of the developments in China since 1978 when the economic reforms were introduced in China. He pointed out that the per capita income during 1980 to 2000 increased four times in real terms. The new plan prepared by the government again visualizes per capita income increase by 4 times during 2000 and 2020. The average annual income is expected to reach $3000 by that time.

Xu noted that the country gives top priority to economic construction and people oriented sustainable development is given special stress by the government. The 5 cardinal issues on which the balanced growth is achieved are as follows (1) balanced development in urban and rural areas (2) achieving human development without adversely affecting nature (3) higher domestic economic growth and opening of the economy to the outside world (4) due importance to economic development to ensure social aspects and (5) regional development to reduce regional disparity.

He admitted that some problems are faced by the country which are concerns of the trade unions in China. The most important problem faced is that of unemployment. Due to modernization of economy several workers have been laid off while new entrants have come in the employment market. More and more rural people are coming to cities and problems of urbanisation have become more crucial. Social security of workers is also a serious problem for the migrant workers. Last year incomes of farmers showed a decline. However, due to additional investment in agriculture income of the peasants started showing an increase.

Xu further noted that income disparity in the society has widened and the government has to take steps to reduce it. He observed the pressure on natural resources increased due to faster development. He clarified that the steps are to be taken to overcome these problems so that the imbalances in the growth of economy are properly corrected.

ROLE OF ACFTU

He mentioned that ACFTU has a membership of 123 million and has 32 provincial branches. The total workforce in China is estimated at 315 million of which about 100 million are migrant workers. The ACFTU has 1.57 million grass root branches all over China. Since the union membership is enrolled  on a voluntary basis, all workers are not members of the union. Though many agricultural workers are members of the ACFTU the membership in this sector requires to be strengthened. Generally every year 6.6 million workers are added to the union membership.

The trade unions in China are playing an important role in adopting labour laws. The National Peoples Congress consults ACFTU in passing labour laws and regulations concerning working conditions, safety, occupational health and work related injuries. Over 30 laws and regulations have been so far adopted by the NPC in consultation with trade unions. President of the ACFTU is vice chairman of NPC and he has recently demanded revision of some of the labour laws in favour of workers. The company law in China is now being amended and ACFTU is ensuring that workers rights and interests are properly protected in that law.

Xu explained that joint sessions are periodically held between ACFTU and government of China at central, provincial and county levels to ensure that workers rights are properly protected. 673,000 collective agreements have been signed in China covering 1.21 million enterprises and 1003 million workers.

To promote and strengthen democratic management in industry the factories and establishments are holding workers’ congress to decide the policies of running the undertaking in consultation with trade unions. They also consider technological development of the unit and planning in advancing production. The non-public enterprises are also now covered by the workers congress system so that the undertakings are run in a democratic manner. 

UNEMPLOYMENT INSURANCE

24 million workers are unemployed in China due to introduction of new technology which accounts for 4.3 per cent of the workforce. This year the figure is likely to reach 4.6 per cent due to modernisation of textile industry in China. About 4 million workers are added to the employment market every year due to new entrants. Government is adopting a policy which would ensure creation of about 10 million jobs every year.

The unemployed workers are protected by an unemployment insurance scheme. Under this scheme a workers is given minimum wage for a period of 3 years. If he does not get job by that time then some living guarantee is given to a worker. The amount is however varying between different provinces. Some workers are provided financial assistance to start some establishment of their own for a living. Children of unemployed workers are provided special facilities in their studies in schools and colleges. 

FOREIGN OWNED PROJECTS

ACFTU felt that the foreign companies working in China were discouraging formation of unions. Therefore, TU law provides for establishment of trade unions in such undertakings. Xu admitted that in some foreign establishments TU have not been formed and ACFTU is making attempts to do so. Some foreign companies violate the labour laws and government had to take action against some employers. Even some strikes have been reported in some of the foreign owned undertakings.

As a result of China’s entry in WTO, the foreign advanced countries which give huge subsidies to their industries are opposing subsidies by  the developing countries. That is generating an area of conflict. Some Chinese enterprises have been opposing unfair competition by foreign companies.

Xu pointed that out of total employed workers 40 per cent are women and they are getting equal rights in all respects. He also replied to the questions raised by the members of Indian TU delegation.

 VISIT TO CIGARETTE FACTORY

Indian delegations visit to Beshiny Cigarette factory was helpful in knowing how efforts are made to improve the performance of the factory through joint efforts of the union and the management. Both the director of the factory and the union chairperson of the factory were women. Since 1984 the attempt to modernize the factory were made as a result of which the output per worker increased from 200 to 500 cartons per day. The employment of the factory came down from 4000 to 2000 but the retrenched workers were rehabilitated elsewhere.

48 per cent of the employment in the factory was of women. The same proportion of women was in the management personnel. Every worker in the factory has been provided with a house. Workers are also encouraged to have their own house through a fund created by joint contribution of the workers and the management. For half a Yuan the workers are provided good quality of lunch by the management of the factory. Every worker in the factory is entitled for old age pension.

The workers participate in the management of the factory and every policy decision is taken in consultation with the trade union. The factory runs a business management school for advancement of skill of workers and management personnel. The factory allows workers to purchase shares if they so desire.

LEICA – JOINT VENTURE COMPANY

Our visit to Leica Microsystem unit with German collaboration was also informative. The management was fully controlled by the Chinese while German experts were giving technical guidance. The unit manufactures microscopy systems in life sciences, instruments for tissue infiltration and embedding, surgical micro scopes which offer new therapeutic approaches in micro surgery and semi conductor equipment. Most of the employees were highly skilled and producing high value items which were exported all over the world.

A large number of employees were women and the production process was highly automatised. All the 1500 employees had to undergo extensive training to perform highly complicated operations.  

General Manager of the factory was a young Chinese technocrat who knew personally every employee. He explained the working of the factory in a simple way and showed us the actual operation of all the departments. Every worker has direct access to him and an effective monitoring system of all the departments was well developed. He was personally looking into all aspects of working of the factory, which has resulted in an increase in the productivity of the workers substantially.

The German collaborators have given financial and technical assistance but entire management control is in the hands of Chinese. All labour laws in China are applicable to the undertakings. The union leader who also accompanied us throughout explained how the union played an important role in running of the factory. No decision is taken by the management without consulting the union.

STRENGTHEN INDIA-CHINA COOPERATION

During the visit the leadership of two countries agreed to strengthen cooperation between the trade union movement of India and China. It was also agreed to extend the cooperation at the Asian level so that solidarity of the Asian workers is strengthened. Industrywise joint delegation by trade unions of both the countries can be organized It was felt that holding Asian level seminars on common issues facing the working class can improve such cooperation through exchange of views and experiences. Both sides agreed that despite ideological differences it was possible to come together on common issues and learn from each others experiences.

Indian TU delegation returned to India with confidence of strengthening the ties of friendship between two largest populated Asian countries which will contribute to the development of TU movement in Asia.