China’s labour disputes ‘up 95pc’

Labour-related lawsuits nearly doubled in the China last year mainly due to mass factory shutdowns, a senior official with the Supreme Court said.

A manufacturing powerhouse, China’s factories were hard hit when overseas demand for their exports evaporated in the wake of the global financial crisis.

Shen Deyong, vice president of the Supreme People’s Court, said at a news conference Monday that the number of labour-related lawsuits filed last year jumped 95 per cent, marking the biggest on-year increase of any type of suit.

He said most of the cases were filed in the country’s coastal southeast, home to a string of factory hubs. In some areas, labour suits increased about 200 per cent compared to 2007, he said, without giving specific figures.

The spike in labour lawsuits was “closely connected to businesses slumping and factories being shut down,” he said.

“When they face difficulties, these businesses often reduce their costs by cutting the labour force and salaries,” he said.

He said a new labour contract law that came into effect at the start of last year and rising public awareness of worker’s rights also contributed to the rise in cases.

Unemployment is a major concern for China’s communist leadership because of fears it could trigger social unrest and demands for political reform.

Source: AP

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