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Collective Bargaining and Changing Industrial Relations in China.

Lessons from the U.S. and Germany

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Siqi Luo

This study focuses on the status and prospects of collective bargaining in China based on lessons learned from the post-war United States and Germany. The author regards collective bargaining as a type of core wage regulation that emerged from production regimes at the factory level and from economic and labor policies of the state. This analysis compares the production regimes and the state-labor-capital relations in China today with the U.S. and German models in order to identify the missing links as well as potential driving forces in the current system of collective contract in China. Finally, the author proposes an ideal model of collective bargaining in China, one that offers solutions to a more just and sustainable trajectory of industrial development and that tailors to the power status of the major actors in industrial relations.

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Appendix A

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Table 1 - The Percentage of the Three Industries in Gross Domestic Product Year Primary Industry * Secondary Industry Industry Tertiary Industry 1978 28.2 47.9 44.1 23.9 1980 30.2 48.2 43.9 21.6 1985 28.4 42.9 38.3 28.7 1990 27.1 41.3 36.7 31.6 1995 19.9 47.2 41.0 32.9 1996 19.7 47.5 41.4 32.8 1997 18.3 47.5 41.7 34.2 1998 17.6 46.2 40.3 36.2 1999 16.5 45.8 40.0 37.7 2000 15.1 45.9 40.4 39.0 2001 14.4 45.1 39.7 40.5 2002 13.7 44.8 39.4 41.5 2003 12.8 46.0 40.5 41.2 2004 13.4 46.2 40.8 40.4 2005 12.2 47.7 42.2 40.1 2006 11.3 48.7 43.1 40.0 2007 11.1 48.5 43.0 40.4 2008 11.3 48.6 42.9 40.1 Employment 1978 1990 2000 2008 Primary Industry 70.5 60.1 50.0 39.6 Secondary Industry 17.3 21.4 22.5 27.2 Tertiary Industry 12.2 18.5 27.5 33.2 Source: Statistic Yearbook 2009, Table 1-3, 4-3, http://www.stats.gov.cn/tjsj/ndsj/2009 /indexch.htm; Note: Secondary Industry includes mining, manufacturing, producers and suppliers of electricity, gas and water, and construction. 273 Table 2 Distribution of industrial enterprises with legal entities and their employees Enterprises (10,000) Employees (10,000) Transportation vehicle manufacturing 7.6 577.3 Electric machinery and equipment manufacturing 8.9 624.8 Communication equipment, computers and other electronics equipment manufacturing 4.3 698.8 Source: The No. 2 report of the Second National Economic Survey, released on December 25, 2009 by the State Council and the National Bureau of Statistics. Table 3 Industrial Value-added in the Electronics Industry (Unit: 100million RMB) 2000 2001 2002 2003 2004 2005 2006 Electronic & telecom equipments 1471 1623...

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