China's cases soar as workers seek redress

The number of labor disputes heard by courts has skyrocketed this year with many employees choosing legal avenues before trying to sort out problems with their bosses. (Photo: Chinadaily.com.cn)
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BEIJING,April 22-- The number of labor
disputes heard by courts has skyrocketed this year with many employees choosing
legal avenues before trying to sort out problems with their bosses, experts said
on Tuesday.

Figures from the Supreme People's Court (SPC) showed
98,568 cases in the first three months this year, a 59-percent year-on-year
rise.

"Amid the global financial crisis, the number of
businesses going into the red or going bankrupt continues to grow, leading to
more disputes over salary claims," said Du Wanhua, chief of the SPC's No 1 civil
trials tribunal.

"Ever since the implementation of the Labor Contract
Law in January 2008, workers have become more aware of their rights and the
legal avenues available to safeguard them."

A revision of regulations on lawsuit fees in 2007
reduced costs to 10 yuan (1.50 U.S. dollars) per case, while at some courts they
are free. Previously, costs were based on the amount of money involved.

Wang Linqing, a professor of civil law at Renmin
University of China, told China Daily that the economic downturn and the revised
laws could be putting more pressure on the courts, with some workers filing
lawsuits as a first step rather than discussing the issues with their employers.

Wang suggested that more out-of-court mediation be
used with extensive participation of government departments, labor unions,
residents' or villagers' committees as well as mediators.

Qiu Baochang, dean of Beijing-based Huijia Law Firm,
agreed.

"Workers should not rely solely on the courts and
arbitration committees. Fair labor treatment can also be achieved through
negotiations between workers and enterprises," Qiu said.

The law, which took effect last year, includes
clauses on overtime payment, compensation for contract termination and wages for
departing staff who had served at least one year.

Last year, 286,221 disputes were heard, a 93-percent
rise on 2007, with the number nearly tripling in some coastal cities.

Courts in Guangdong province heard 20,163 labor
disputes during the first three months this year, up 41.6 percent year-on-year,
the SPC data showed, while in Jiangsu and Zhejiang provinces the figures jumped
50 and 64 percent to 11,782 and 6,513.

Zhejiang has been one of the worst hit by the
financial crisis, with more than 1,200 enterprises halting production or going
bust over the past 12 months - almost as many as in the previous 10 years, Hong
Kong media reported in February.

In the past, most disputes were related to damages
for injuries or payment, but there has been a sharp rise in workers claiming
back pay for social insurance and pensions, as well as lawyers, accountants and
auditors suing employers for grievances related to the process of signing,
terminating or halting labor contracts

Fearing an increase in disputes might affect social
stability, the SPC has been working on a judicial interpretation of the Labor
Contract Law since last July to uniform trial standards nationwide.

"We encourage enterprises to assume more social
responsibility, and try not to lay off workers or reduce salaries. On the other
hand, we suggest workers show more understanding toward enterprises in financial
difficulties," Du said.

Still, courts will punish such violations as
arbitrary retrenchment, and guide employees and enterprises in resolving
disputes through shorter working hours, training shifts, temporary vacations or
salary negotiations, Du added.

(Source: China Daily)