Labor Law Reform in China

Update: Thanks to Steve Befort (Minnesota), who is currently teaching in China, for sending along this summary that he prepared for his class on the principal changes embodied in China’s new Contract Labor Law.

The New York Times reported on Friday that China has enacted sweeping labor law reforms:

China’s legislature passed a sweeping new labor law today that strengthens protections for workers across its booming economy, rejecting pleas from foreign investors who argued that the measure would reduce China’s appeal as a low-wage, business-friendly industrial base.   

The new labor contract law, enacted by the Standing Committee of the National People’s Congress, requires employers to provide written contracts to their workers, restricts the use of temporary laborers and makes it harder to lay off employees.

Although this is a great first step in a country that has been called to answer for numerous human rights violations, there are still some questions that have to be answered about how this law will actually impact the lives of Chinese workers:

But it may fall short of improving working conditions for the tens of millions of low-wage workers who need the most help unless it is enforced more rigorously than existing laws, which already offer protections that on paper are similar to those in developed economies.

In other words, enactment of such laws is great, but enforcement is the key (are you listening OSHA, etc.?).

PS