MOLSS Seeks More Inspectors, Training to Improve

UNCLAS SECTION 01 OF 04 BEIJING 011711

SIPDIS

DEPARTMENT FOR EAP/CM, DRL/IL
DEPARTMENT PASS USTR FOR KARESH, ROSENBERG
DEPARTMENT PASS USTR FOR STRATFORD, WINTER, ALTBACH, CELICO
LABOR FOR ILAB HELM, LI ZHAO, SCHOEPFLE
TREASURY FOR OASIA/ISA-DOHNER AND KOEPKE
USDOC FOR 4420/ITA/MAC/MCQUEEN
GENEVA FOR CHAMBERLIN
LABOR COLLECTIVE

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ELAB ETRD PHUM PGOV CH
SUBJECT: MOLSS Seeks More Inspectors, Training to Improve
Labor Law Enforcement


Sensitive But Unclassified; Handle Accordingly


1. (SBU) Summary: The Director of the Inspection Division
of the Ministry of Labor and Social Security's Legal
Affairs Department is aware of and trying to remedy the
problem of too few labor inspectors in China; his goal is
to double the total number of inspectors so that each
inspector is responsible for 8-10,000 workers. MOLSS has
petitioned the State Commission on Personnel Service
Structure and Establishment Administration for additional
personnel at the national level, but China's political
system will require provinces, cities and other lower level
units wishing to add inspectors to do the same. MOLSS,
through the Labor Rule of Law Project with the U.S.
Department of Labor, anticipates completing and beginning
to use training materials for inspectors this year. While
it is undeniable that there are underage workers in China,
China is doing very well in preventing this problem, the
Director claimed. While it is heartening that MOLSS is
attempting both to increase the number of labor inspectors
and to find ways to help them organize so as to better do
their jobs, it is clear that this will not be an easy task.
In addition, this Director's remarks show how much
anticipated, and how much needed, are the materials for
training inspectors produced by the U.S.-funded Labor Rule
of Law Project. End Summary.


2. (U) Laboff, Labor Intern and Labor Assistant met with
Li Yansong, Vice Director, Inspection Division, Legal
Affairs Bureau, Ministry of Labor and Social Security
(MOLSS) to discuss the Inspection Division's plans for
improving workplace inspections. China's labor inspection
system was established in 1994 following passage in that
year of the Labor Law, Director Li said. Currently MOLSS
is working to expand the size of the inspection force, and
to improve methods of inspections so as to better enforce
the law.

MOLSS Conducts Annual and Special Inspections
--------------


3. (U) The Inspections Division conducts regular and
special inspections; special inspections are conducted
jointly with other ministries and organizations. For
example, for three consecutive years, the inspectorate has
conducted, with the Ministry of Construction and the All-
China Federation of Trade Unions, special inspections of
wage payments to migrants at the end of the year, and this
inspection may be continued on an annual basis. This year,
MOLSS conducted, with the Public Security Bureau and
ministry of Commerce (MOFCOM),a special inspection
following Spring Festival to eliminate illegal employment
agencies who cheat migrant workers. Currently, a special
one month campaign is being conducted to assure that labor
contracts are being signed, that wage and hour regulations
are being followed, and that underage workers are not being
employed. In the months of July and August, another
special inspection will be conducted to assure employer
compliance with protections in the law for women and
underage workers. The Inspection Division also pushes the
local Labor and Social Security Bureaus (LSSBs) to
strengthen their inspection goals.

MOLSS Trying to Remedy Inspector Shortage
--------------


4. (U) MOLSS knows that the Inspection Divisions
throughout the country are shorthanded, Director Li said.
Therefore, MOLSS is trying hard to increase the number of
inspectors so that each inspector is responsible for 8-
10,000 workers; to do this would require approximately
twice the current number of inspectors. MOLSS has asked

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the State Commission of Personnel Service Structure and
Establishment Administration (Bianzhi, an organization
under the authority of the State Council which administers
the size and internal structures of government bodies) to
increase the number of administrative personnel assigned to
the Inspection Division. MOLSS has asked the ACFTU and
Women's Federation to support its request to the
Commission. However, because China's administrative system
devolves responsibility for inspections to the provincial
and municipal levels of government, each level has to deal
individually with the problem of expanding the workforce.
In addition, China's policy of reducing the size of
government will pose many practical obstacles to increasing
the numbers of inspectors.

Guangzhou Tianzhe Inspection System Could Be Model
-------------- --------------


5. (U) In southern China, there is one inspector for each
40-50,000 workers, which makes it very difficult to assure
adequate inspections, Director Li said. However, the
Tianzhe district of Guangzhou has developed what he
considers to be the best system of inspections. Tianzhe
has established four inspection teams composed of full time
professional inspectors. Their work is assisted by part
time inspectors, also from the LSSB. Legal Affairs
Supervisors, drawn from the All-China Federation of Trade
Unions and from the Women's Federation, and Workplace
Inspection Coordinators, a group of laid-off workers hired
with reemployment funds and trained in the inspection
process, are empowered to warn companies about violations
of the law, and to report these violations to higher
authorities if the company does not remedy the violation.


6. (U) In the Guangzhou system, each full time inspector
is assigned responsibility for one level of government.
Inspectors have access to a computer, which links them to a
network established by the Guangzhou LSSB. The network
contains records of companies' violations and other
information. In Director Li's view, the Tianzhe model has
been effective. However, it is s than many foreign models,
Mr. Li said. However, it is very expensive to establish
and to maintain, and as a result, would be hard to
establish nationwide, he noted.

Training System for Inspectors in Development
--------------


7. (U) In order to improve the inspectors' professional
skills, MOLSS, with the help of the U.S. Department of
Labor in the Labor Rule of Law Project, is preparing
materials for training inspectors. Drafting of the
materials will be finished by September, and approved by
the end of 2006. Some pilot programs may be conducted
throughout the country this year as well. In addition,
MOLSS will establish two networks, the first an information
technology network, and the second a geographic network
pursuant to which each inspector will take charge of a zone
or region.

Enforcing the Requirement for Labor Contracts
--------------


8. (U) Employers are required by law to sign a labor
contract with every employee. Jurisdiction over labor
contracts within MOLSS does not reside with the Inspection
Division, but rather with the Labor Relations Division.
Moreover, not every locality has a requirement that a
contract be verified by the labor agency, the Director
said.


9. (U) MOLSS is currently engaged in a campaign to assure

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that employers sign contracts for all their employees
within three years. The Inspection Division is involved in
this campaign but the Labor Relations Division is in
charge. The Labor Contract Law which has been drafted and
will be passed before the end of 2006 will provide
increased protections for workers.

Child Labor Allegations Rigorously Investigated
-------------- --


10. (U) Employers are responsible for obtaining the
identification card of all workers employed in their
company, and for verifying the card's validity, Director Li
said. If an individual applying for a position has no
card, then it is the obligation of the employer to contact
the Public Security Bureau from the individual's home town
in order to verify the individual's age. These obligations
fall exclusively on the employer.


11. (U) The Inspection Division inspects employers who
are alleged to be employing child workers upon receipt of a
report or complaint, regularly on its own initiative, and
during special inspections. These inspections have been
conducted for many years and inspectors are very
persistent, Director Li indicated. Many investigations are
conducted jointly with the ACFTU and Women's Federation.
All LSS Bureaus are aware that this is a hot button issue,
and that they are to tolerate no violations of the policy,
he said. Child labor is a preoccupation for inspectors who
are constantly be on the alert for children working,
Director Li said. Whenever he enters a hotel or a
restaurant, he immediately scans the faces of workers to
see if there are any that appear to be too young.


12. (U) It is undeniable that there are underage workers
in China, Director Li said. However, as a systematic
matter, it is clear that China is doing well in attacking
this problem, and, according to the Director, this is the
assessment of the International Labor Organization as well.
A map he viewed in Holland showed China's rating in this
regard to be the same as the United States and European
countries, the Director said. China's traditions of
history, culture and especially of valuing education all
militate against child labor.


13. (U) China's laws and regulations also strongly
condemn child labor. In 2003, the State Council issued a
document that established severe punitive measures for
employers found violating prohibitions against child labor.
The document requires a fine of 5,000 rmb. (more than USD
600 at the current exchange rate) per month per child found
working. The criminal law also contains a provision
stating that an employer who threatens the life of a child
worker will be held to be criminally responsible. Last
year, when he visited California as part of the Labor Rule
of Law program, he was told that California authorities
also considered this fine to be a severe punishment for
such a violation. Nonetheless, he stated, some enterprise
managers lack awareness, and compulsory education is not as
complete as desired.


4. (U) In his personal view, Director Li said, China
should make some changes in its laws. He has looked at the
U.S. law, and believes that it is clearer than Chinese law
as to when a young person may work, and under what
circumstances, such as vacations from school, holidays,
etc. China has not created sufficient legal working
opportunities for young people; these legal opportunities
could be good opportunities for their growth and
development.


15. (SBU) Comment: While it is heartening that MOLSS is

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attempting both to increase the number of labor inspectors
and to find ways to help them organize so as to better do
their jobs, it is clear that this will not be an easy task.
In addition, this Director's remarks show how much
anticipated, and how much needed, are the materials for
training inspectors produced by the U.S.-funded Labor Rule
of Law Project.

Randt