Democracy in the Factory

From Nation, page 12, issue no. 385, Sept 15, 2008
Translated by Ren Yujie
Original article: [Chinese]

The industry estates in Guangdong province's Pearl River Delta often evoke images of oppressive sweatshops, but factory owner Guan Jianwen prides himself as a first in injecting "democratic spirit" at his workplace.

In Late July, Guan's Foshan-based factory - which produces textile products for hotelier industry - became the first private enterprise in his industry park to establish a labor union.

The union leaders were voted by workers through secret ballots. Guan allowed each production line to vote for their own representatives based on the ratio of one rep for eight workers.

These production lines' representatives then voted for 11 committee members and four union vice-presidents.

However, the union president is appointed by Guan, and the candidate was the factory assistant manager Zhang Xinwen, who said: "I am the umbilical cord between the boss and the workers, I have to satisfy both parties."

Shadow Union?
A union with a boss-appointed chief might arouse suspicion that it was a paper tiger without the bites, but Guan disagreed.

He justified it by saying: "Labor union is an organization made up of workers, it does not mean that one must antagonistic or must organize strikes to qualify as a union. I believe a union is a base for workers to learn self organization."

"The confrontational mode in demanding for pay raise for example, has become passe, instead, working towards a mutual understanding and reliance between the employers and employees is more effective. No union wants the employer to go bankrupt, or else, they would have nothing left to do," he added.

"What if the union requested for pay raise?" The EO asked.

"I will raise their salary then," Guan answered.

Within a month of setting up, the workers' union at Guan's factory had accomplished two major tasks - drew up an "employees' manual" and reviewed the salaries collective agreement.

The newly drafted "employees' manual" prescribed eight-hour workday, a fixed rest day per week, and double salary payment for overtime work. In addition, workers could enjoy wedding holiday and 90-day maternity leaves.

As labor shortage became an issue in recent years, private enterprises in the Pearl River Delta had no choice but to raise salary. Guan said his factory had in one year upped workers' salaries twice.

Having a standardized collective agreement was a good thing, he said, as it would promote an institutionalized pay raise mechanism.

Migrants and Homes
The factory's security chief Chen Hongxiu was elected the committee member for protecting workers' welfare. Chen originated from Jiangxi province, but "home" had become a place that he would not return to.

Chen injured one of his arms at work back in 2002. He was then transferred from the production line to the security unit, taking care of sanitation inspection, logistic and watch over company property.

His family of three had all moved over to Foshan and registered with local social security policy. His son, attending local school in Foshan, could speak Guangdong's dialect - Cantonese - but not the Jiangxi dialect.

Chen said he hadn't gone back to Jiangxi for some five years, and he felt more at home in Guangdong with his established social network here.

"When I become old, I might still get some odd jobs here and there by keeping watch over store houses. But if I go back to the village, what else could I do?" he said.

One of the tasks the labor union Chen attached to was to help set up a workers' relief fund, so that staff facing difficult times could draw from, and to demand for job placement priority for staff family members who qualified.

Democracy Boot Camp?
Guan summarized three phases of transformation for rural migrant workers seeking jobs in cities. The first phase was at the beginning of 1980s, when rural migrant workers were willing to work for meals without salaries.

The second phase was in the 1990s, when rural workers sought for money in the cities, but their families stayed behind at hometowns.

The present was the third phase, he said, which was also the urbanization stage. Migrant workers wanted to remain in the cities they worked in with their families, and their kids would grow up in the cities.

With this in mind, Guan said he had long-term plan for his staff; he wanted to invest in developing a commercial housing estate and sell the houses to his employees. "But I am not sure if the workers can get loans from banks," he added hesitantly.

His factory currently provided collective dormitories, but he noticed workers who were married preferred to stay on their own, so Guan had also invested in some small apartments and collected low-rental from wanting workers. All the available units were rented out, he added.

"If they (migrant workers) could not own a house here, they would eventually leave for village home. But if I sell them houses, they will buy furniture and settle down, fetch family over and send children to schools.

"This will create a lot of chain-spending, pushing up local spending and benefit various industries. A new residential community will promote urbanization, and then I can also invest in more facilities for bigger monetary returns - I can build shops, set up real estate agency, or open a hotel. There will be new growth, and these workers need not to go back to the villages they no longer familiar with," Guan said.

Guan believed providing housing for rural migrant workers would be a win-win solution for both capitalists and labors, and raising salary could stimulate workers' consumption, leading to domestic demand and producers could make money; all these, he said, came in a cycle.

"The labor union in my factory might also one day play a bigger role or have a larger impact. When they are workers, their focus is production and earnings.

"When they become residents, their focus is to live independently. Today's labor union may be a training ground for them to organize their own residents' committee, which is thegrassroots community of a society and a foundation for democracy. Don't you think the union election is like a training camp for democracy?" he said.