What role do trade unions and work councils play?
Employers in China are obliged by law to recognise trade unions for the purposes of collective bargaining and there is a statutory framework which specifies what collective agreements should cover. Companies considering a restructure or other major changes are obliged to consult with the union and the employees, generally through an employee representative congress. But unions and employees do not have a right of veto over business decisions unless they directly affect employees’ rights. However, where the issue under consideration directly affects employees’ rights (e.g. salary or working conditions) then a union representative or an employee representative must attend any meeting where those issues are discussed and the employer must obtain the agreement of the union before implementing any decision.
