Abstract

This case study was about the increasing worker unrest taking place in China during the summer of 2010. The case highlights how China was a ‘world factory’ that followed the export-oriented growth model that wanted to achieve growth at any costs. China had a controversial history where the period of the ‘Great Leap’ was superseded by the concept of ‘Growth with Chinese characteristics’. For a long period in its modern history, the country had thrived on the exploitation of the underprivileged working class. The country had a ‘hukou’ system that essentially controlled the movement of rural people into urban areas. These rural workers that lived and worked in urban areas faced a tough life. Unprecedented labor unrest had erupted in China during 2010 in China. The strike at Honda Auto Parts Manufacturing Co. Ltd. (Honda), Foshan and suicides at the Fox-conn International Holdings Ltd. (Foxconn) plant in Shenzhen had drawn global attention. There were increasing wage demands from workers that threatened China’s competi-tiveness. China only had one official trade union that did not protect the workers during disputes. In fact, the union would even assault striking employees in case they did not follow their orders. However, the workers were becom-ing increasingly enraged at the conduct of the official union. The strike by Honda, Foshan employees that began on May 17, 2010 was labeled as the the largest industrial action ever reported in China. In the case of Foxconn, there was a string of tragic suicides. However, the management had distanced themselves from the events, calling them psychological issues being faced by the workers. However, in both the cases - Honda and Foxconn, wages were raised. The was a contrasting experience between Foxconn and Honda workers - while the former had had chosen the path of suicide, the latter had united to fight for their gains. Experts had mixed views regarding these unprecedented developments. Some thought that it would hasten change towards an open society. It was reported that the Guangdong People’s Congress had begun to debate about granting labor the officially sanctioned right to strike and elect the worker representa-tives. However, these changes were putting the Chinese state into a dilemma of securing increasing amounts of growth.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues surrounding the particular context of a labor movement
• Analyze the reasons for the workers to organize
• Debate the role being played by labor unions. Appreciate if the employees have rights against their unions
• The critical role of unions in securing employee wellbeing
• The need to have good faith in the relations between employees, emplo-yers and the union

Keywords

Labor Movement, Organizing workers, Strikes , Psychological effects of work conditions, Taylorism, Collective bargaining, Industrial action, Trade Union, Labor Law, Physiological effects of work conditions, Government Responsibility, Employee performance, Generational influence in the workforce, Demographic profile, Hukou system, Socialism with Chinese Characteristics