ILO/MOHRSS Joint Review Mission on Labor Inspection in China: Findings and Challenges

1. Main findings of ILO/MOHRSS Joint Review Mission on LI in China, 8-17 September 2009 Symposium on LI Strategy in China Xian, China, 25-26 November 2009 Presented by Changyou ZHU ILO Office for China and Mongolia

2. Introduction • Background of the Review • Mission’s Terms of Reference • Work undertaken • Introduction to the Findings

3. Main contents • Legal framework • LI Profile in China • Working systems • Policy, planning and programmes • capacity building and HRD • Inspection methods • Partnership • Issues and challenges

4. LI Profile 34 million urban employing units and nearly 400 million urban employees; In the end of 2008, there were 3,200 labor inspection agencies all over the country with a total of 25,000 full-time labour inspectors at four levels of labour inspectorates.

5. Legal Framework In 1993, the former Ministry of Labour issued Labour Inspection Rules and required to set up labour inspectorates at labour administrative departments above country level. In 1994, the Labour Law was promulgated by the NPC, which laid the legal basis for LI and pushed the LI development In October 2004, the State Council issued the Labour Inspection Regulations which constitutes a milestone for LI development in China In 2007, the Labor Contract Law, Employment Promotion Law and Labour Dispute Conciliation and Arbitration. The Administrative Sanction Law, The Administrative Litigation Law, the Administrative Reconsideration Law, etc.

6. Work systems 10 important LI working system have been set up:  Labor and social security legal obligation system  Labor inspection jurisdiction system;  Labor inspection procedures system;  Labor inspection case reporting and complaining system;  Desk review system of written materials;  Public announcement system of grave violations;  Emergency response system for massive group case;  Credit system for compliance with labor laws,  Labor Inspector management system; and  Reporting system of performance of enforcement

7. Policy, Planning and Programmes Annual National Labor Inspection Working Conference is the main means of updating LI policy and deploying the annual work plan-Minister’s reports serve as policy paper. Policy documents issued by provincial governments such as the Circular concerning Strengthening Work on Labour and Social Security Inspection by Hubei Provincial Government The annual working plan and the medium and long–term development plan for of labor inspection.

8. Capacity BuildingandHRD Status of Inspectors (LIs and LIAs) Recruitment Qualification requirements Standards of professional conduct The “twin networks” system Training and institutional capacity building “Law enforcement “guarantees”

9. Inspection Methods Extend coverage of the Desk-Top Review (DTR as annual review); Broaden channels of complains reporting (phone, visits, letters and websites, etc.) Strengthen routine visits (prioritized visits, preventive and service-oriented) Regularise specific campaigns (e.g. wages arrears for migrant workers) Investigate major cases Deal with emergency and group cases

10. Partnership Cooperation within human resources and social security departments Collaboration with other government agencies Synergy with People’s courts Academia and Universities Mass organizations (labour law supervisors) and NGOs Media

11. Local experiences and innovations (Guangdong) Building and investing the “Twin Networks” Chang inspection strategy by strengthening routine inspection Inform the public on names of employers which seriously violate the laws Capital City of Guangzhou ahs the largest number of labour inspectors in the country with good practices of developing annual inspection plan, monitoring and appraisal system of performance, including special campaigns based on local issues

12. Local experiences and innovations (Hubei) Well defined objectives and strategies Strengthen work systems and standardize operation Establish cooperation mechanisms Capital city of Wuhan has achieved a good result on prevention of back pay for migrants through: setting up a guarantee fund; warning information system; identification of potential wages arrears and quick and joint response

13. Local experiences and innovations (Zhejiang) Regularize and schedule specific campaigns Introduce a preventive mechanism for rights protection such as the “Work Attendance Card” (WAC) and “Wage Arrears Guarantee Funds” Strengthen local legislation to promote LI Capital City of Hangzhou applied information technology in centrally Pre-treatment of complains, grading credit enterprises, online labour inspectors’ training and examination and web blog forum on protection of workers’ rights

14. Challenges and Opportunities The international financial crisis provides the new challenges and opportunities to LI development The Labour Contract Law widens the scope and function of Labor inspection Interact with other jurisdictions, such as labour disputes settlement, administrative litigation and sanction, and people’s count ruling, etc. Improve and scale up the Two Networks” Standardize operations to strive for a modern, effective and authoritative LI system in China

15. Concluding remarks LI in China has grown up and is promising Enforce the laws for the interest of people, which has a full of virtue Being innovative and progressive to realize a harmonious society Long and hard journey ahead and strive for a continual improvement

16. Thank you Zhu Changyou ILO Office for China and Mongolia Tel: 6532 5091, Fax: 6532 1420 E-mail: zhuchangyou@ilo.org www.ilo.org/beijing