Identifier
Created
Classification
Origin
07SHANGHAI307
2007-05-24 09:07:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Shanghai
Cable title:  

SHANGHAI LABOR INSPECTION WORKSHOP

Tags:  ELAB PGOV PHUM CH 
pdf how-to read a cable
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ZNR UUUUU ZZH
R 240907Z MAY 07
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 5842
INFO RUEHBJ/AMEMBASSY BEIJING 1096
RUEHCN/AMCONSUL CHENGDU 0656
RUEHSH/AMCONSUL SHENYANG 0660
RUEHHK/AMCONSUL HONG KONG 0765
RUEHIN/AIT TAIPEI 0531
RUEHGZ/AMCONSUL GUANGZHOU 0638
RUEHC/DEPT OF LABOR WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 6243
UNCLAS SECTION 01 OF 02 SHANGHAI 000307 

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EAP/CM AND DRL
DEPT PASS USTR FOR KARESH, A. ROSENBERG, CELICO
LABOR FOR ILAB - ZHAO LI
TREAS FOR OASIA/ISA-CUSHMAN
USDOC FOR 4420/ITA/MAC/MCQUEEN, MELCHER AND DAS KASOFF

E.O. 12958: N/A
TAGS: ELAB PGOV PHUM CH
SUBJECT: SHANGHAI LABOR INSPECTION WORKSHOP


(U) Sensitive but unclassified. Not for dissemination outside
USG channels; not for Internet distribution.


UNCLAS SECTION 01 OF 02 SHANGHAI 000307

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EAP/CM AND DRL
DEPT PASS USTR FOR KARESH, A. ROSENBERG, CELICO
LABOR FOR ILAB - ZHAO LI
TREAS FOR OASIA/ISA-CUSHMAN
USDOC FOR 4420/ITA/MAC/MCQUEEN, MELCHER AND DAS KASOFF

E.O. 12958: N/A
TAGS: ELAB PGOV PHUM CH
SUBJECT: SHANGHAI LABOR INSPECTION WORKSHOP


(U) Sensitive but unclassified. Not for dissemination outside
USG channels; not for Internet distribution.



1. (SBU) Summary. During a May 17-18 labor inspection workshop
in Shanghai, Chinese government officials and academics
attributed weaknesses in China's labor inspection system to a
lack of resources, lack of training for inspectors and
inadequate enforcement authority. They urged that the
constitution be amended to include more articles on labor
inspection and that the Labor and Social Security Inspection
Regulation be upgraded to a law. U.S. participants emphasized
the importance of establishing a common understanding in the
government of the purposes and goals of labor inspection and
urged that the government work with NGOs and industry
associations. End Summary.


2. (U) On May 17-18, the National Committee on U.S.-China
Relations and the Chinese Ministry of Labor and Social Security
(MOLSS) jointly organized a workshop on labor inspection in
Shanghai. The workshop was an activity under the Department of
Labor's Labor Rule of Law Project. The purpose of the workshop
was to provide a venue for Chinese and U.S. labor experts to
exchange views and experiences on labor inspection, support
efforts to strengthen the Chinese government's capacity to
develop laws and regulations to implement internationally
recognized standards of workers' rights, and promote greater
awareness of labor law among Chinese workers and employers.
Meeting attendees included scholars from Chinese law schools and
research institutes, government officials from labor and social
security departments and U.S. labor inspection experts,
including National Committee on U.S.-China Relations' Senior
Program Officer Ling Li, U.S. Department of Labor's Wage and
Department of Labor Hour Division's former manager John Fraser
and the Department of Labor Wage and Hour Division's former
regional manager Teresa Melnyk.


3. (SBU) Chinese participants attributed weaknesses in China's
labor inspection system to a shortage of staff and funding, lack

of training for inspectors and inadequate enforcement authority.
According to MOLSS Department of Rule of Law Director Yan
Baoqin, although China currently had 21,000 full-time inspectors
throughout the country, it would take them about 50 years to
complete labor inspections at all enterprises. MOLSS Labor
Inspection Section Director Chen Lan added that Chinese labor
and social security departments had expanded their work force
and hired temporary inspectors from trade unions, woman's
federations and youth federations to manage the numerous
inspection tasks. She said, however, that it was difficult for
inspectors to investigate labor violations in some places
because economic development was a major priority in those
areas. She said it was necessary to promote a common
understanding of labor inspection and strengthen communication
between different departments and law enforcement agencies.
Finally, she suggested revising the constitution to add more
articles on labor inspection.


4. (SBU) Chinese scholars were curious about U.S. labor
inspection practices. They asked U.S. experts for information on
how to make standards for piece-rate wages, how to build an
incentive system for industries to prevent labor violations, and
about the relationship between NGOs and the U.S. government.
Both U.S. and Chinese participants agreed that the highest
number of labor violations occurred in the food industry,
restaurants, hotels, textile companies and the construction
industry. U.S. experts emphasized the importance of
establishing a common understanding of the purposes and goals of
labor inspection with government and business leaders. They
suggested that Chinese officials work with industry associations
to create standards for technical matters such as piece-rate
wage and overtime. On the margins of the conference, a Chinese
scholar told FSN Political Assistant that NGOs could play a more
active role in labor inspections as long as they coordinated
closely with the government.


5. (SBU) Although Chinese participants admitted improvements
were needed in labor inspection, they said that there had been

SHANGHAI 00000307 002 OF 002


some progress in China's labor inspection development and
pointed to successes in getting back wages paid to migrant
workers. According to Anhui Provincial Labor Bureau's Labor
Inspection Section Chief Wang Jie, Anhui province last year
secured RMB 20 million (USD 2.6 million) in back wages for
migrants. About RMB 16 million (USD 2.1 million) was collected
from Hefei-based factories. The factory owners were told that
they could not go home for the Chinese Spring Festival until
their migrant workers were paid. The last case was settled on
Chinese New Years Eve. Wang worried, however, that such
administrative actions would not be effective in the future. He
urged the Chinese government to upgrade the Labor and Social
Security Inspection Regulation to a law and give more authority
to inspectors.


6. (U) This cable was coordinated with Embassy Beijing.
JARRETT