The Arbitration of Labor Disputes in China Today: Definition and Implications

Over the past 12 years China has strongly encouraged the use of a formalized arbitration process to resolve, among other conflict areas, labor disputes. Using a formal resolution process is meant to calm labor unrest by giving employees both individual and collective voices in workplace issues. Ultimately, China recognizes that, as did the United States with passage of the National Labor Relations Act, giving employees voice quells potential social revolution and helps business by making use of employee ideas while attracting the best employees. This paper discusses some history of the Chinese labor dispute resolution process and its specific provisions promulgated in two laws and a set of regulations. Strengths and weaknesses of the process are enumerated and the importance of the process to foreign investors, employers, and employees is laid out.