Student answer 1)The regulation of Chinese labor relations changed since 1980 to provide greater employment protection, especially for workers outside the state sector.  Gradual easing of restrictions led to mass migration from rural to urban areas. Many employees in state-owned enterprises (SOEs) were laid off (27 million between 1998-2002). a)With a population of 1.3 billion, there’s an uneven rate of economic development between urban and rural areas. Long term government policy has promoted low wages and full time employment. The legacy of state planned economy is embedded in China’s political and economic system. In recent years as SOEs have downsized, skill training and assisting laid-off workers have become major union functions. b) The unions act as a conveyer belt from party to workers and its main function has been to organize social events, take care of workers welfare, help management implement operational decisions, organize skills training, raise employee morale and coordinate relations between management and workers. c) Local governments devise their own regulations, based on the central government framework, to suit local conditions. The most problematic aspect of Chinese labor laws is the lack of effective enforcement. 1)Yes, the Chinese practices the same workers treatment they do in China when in other countries. Informal workers have no employment contract, can be hired and fired at will, are subject to mistreatment and have no job security. Rural migrant workers and workers in sweatshop manufacturing plants tend to work extensive hours. 2)Unions retain a welfare role in the public sector but have little credibility among private sector workers where their impact is weak. The role of the state continues to be crucial in shaping IR. The government desires to create a more humanistic employment environment but the intended effect of IR laws are not always achieved. Student answer (a) The primary core of employees is about one third of all employees. It includes civil servants and employees of large enterprises. Regular employees operate in large organizations and are typically employees with longer job tenure. The other two thirds of the labor force work for SMEs, or on a part time basis and usually are not union members. (b) Companies prefer to hire graduates or school leavers who can start earning a relatively low wage that increases with seniority. Once the employee has reached a high level of skill that tends to be related with pay, is not convenient for either employee or employer to terminate the contract. (c) In Japan there is a direct relation between the size of enterprises and union organization among employees. There is a greater chance for union organization as the firm expands, and the opposite reaction happens if the firm is small. At the same time, generally in Japan unions are organized by regular employees of a single enterprise regardless of their occupational level, for which blue-collar and white-.

1. Student answer
1)The regulation of Chinese labor relations changed since
1980 to provide greater employment protection, especially for
workers outside the state sector. Gradual easing of restrictions
led to mass migration from rural to urban areas. Many
employees in state-owned enterprises (SOEs) were laid off (27
million between 1998-2002).
a)With a population of 1.3 billion, there’s an uneven rate of
economic development between urban and rural areas. Long
term government policy has promoted low wages and full time
employment. The legacy of state planned economy is embedded
in China’s political and economic system. In recent years as
SOEs have downsized, skill training and assisting laid-off
workers have become major union functions.
b) The unions act as a conveyer belt from party to workers and
its main function has been to organize social events, take care
of workers welfare, help management implement operational
decisions, organize skills training, raise employee morale and
coordinate relations between management and workers.
c) Local governments devise their own regulations, based on the
central government framework, to suit local conditions. The
most problematic aspect of Chinese labor laws is the lack of
effective enforcement.
1)Yes, the Chinese practices the same workers treatment they do
in China when in other countries. Informal workers have no
employment contract, can be hired and fired at will, are subject
to mistreatment and have no job security. Rural migrant workers
and workers in sweatshop manufacturing plants tend to work
extensive hours.

2. 2)Unions retain a welfare role in the public sector but have
little credibility among private sector workers where their
impact is weak. The role of the state continues to be crucial in
shaping IR. The government desires to create a more humanistic
employment environment but the intended effect of IR laws are
not always achieved.
Student answer
(a) The primary core of employees is about one third of all
employees. It includes civil servants and employees of large
enterprises. Regular employees operate in large organizations
and are typically employees with longer job tenure. The other
two thirds of the labor force work for SMEs, or on a part time
basis and usually are not union members.
(b) Companies prefer to hire graduates or school leavers who
can start earning a relatively low wage that increases with
seniority. Once the employee has reached a high level of skill
that tends to be related with pay, is not convenient for either
employee or employer to terminate the contract.
(c) In Japan there is a direct relation between the size of
enterprises and union organization among employees. There is a
greater chance for union organization as the firm expands, and
the opposite reaction happens if the firm is small. At the same
time, generally in Japan unions are organized by regular
employees of a single enterprise regardless of their occupational
level, for which blue-collar and white-collar workers are
members that usually stay in the firm until their retirement
time. in regard to Germany, the negotiations between
management and works council lead to works agreement,
however, these are prevented from contradicting the industry
wide collective contracts.
(d) During the spring offensive, the Japan Federation of
Employers’ Associations (Nikkeiren) releases guidelines for
employers to follow when dealing with demands from the

3. unions in dealing with collective bargaining.
(e) The main function of the industrial federations of unions is
to guide and coordinate activities of the member enterprise
unions, in order to improve wages and working conditions.
(f)RENGO (JTUC, Japan Trade Union Confederation) is the
largest national center to which most federations of unions
belong. On the other hand the TUC (Trades Union Congress)
takes no part in collective bargaining, its main role is to lobby
governments. The AFC-CIO (The American Federation of Labor
Congress of Industrial Organizations) represents the labor force
in political and public relations. It resolves jurisdictional
disputes among members, code enforcement as well as racial
and sex discrimination.
(2)
(a) Since workers are easy to identify with employers due to
favorable working conditions and employment opportunities, it
is similar to Thompson Products’ situation.
(b)Joint consultation and collective bargaining in Japan takes
place most of the time during the Shunto in April when unions
negotiate collective bargaining.
Student answer
1a) Regular employees operate in large organizations and have
longer job tenure. The other two thirds of the labor force work
part time and usually aren't union members.
(b) Companies prefer to hire graduates or school leavers who
can start earning a relatively low wage that increases with
seniority. Once the employee has reached a high level of skill
that tends to be related with pay, is not convenient for either
employee or employer to terminate the contract.
(e) The main function of the industrial federations of unions is
to guide and coordinate activities of the member enterprise
unions to better the wages and the work conditions of
employees.
(2b)Joint consultation and collective bargaining in Japan takes

4. place most of the time during the Shunto. That is when unions
negotiate the collective bargaining.
Student answer
(1) a. A typical employee are those non-regular part time,
temporary workers who are not represented by a union. A
regular employee operates in large organisations with longer job
tenure. Primary employees are civil servants and employees of
large enterprises and they make up about 1/3 of all employees.
b. Lifetime employment generally applies to makes not
females. Employees are expected to stay with the same
company until their mandatory retirement age of sixty.
Companies however prefer to hire graduates or school leavers
because they can pay them low wages that will increase with
seniority.
c. Enterprise Unions in Japan consist soley of regular
employees of a single company regardless of their occupational
status, up to the lower levels of management. If you leave the
firm then you leave the union.
d. The spring offensive or "Shunto" is when Nihon Keidanren
(Japan Business Organisation) assists employers in dealing with
union demands during collective bargaining.
e. The role of the Industrial Federation of Unions is to
coordinate activities of member enterprise unions with the aim
of improving wages and working conditions. They also handle
problems common to a whole industry, guiding and assisting
member unions in specific disputes and they perform political
lobbying in the interest of workers.
f. Rengo's role has been to pursue cooperative labor
management relations, support the establishment of a coalition
cabinet and sought to form an expanded liberal democratic
league.
(2) a. Enterprise Unions are not the typical company union.
They have more resources and are more powerful. They are
financially independent and self-supporting. They are sort of
hybrid.

5. b. Joint consultation occur in most unionised enterprises.
Collective bargaining takes place at enterprise level only and
only then are elaborate joint consultation mechanisms in which
unions participate. Collective bargaining main focus is on pay
issues. Bargaining in the European Nations takes place between
the regional branches of an employer association and the union
associated with that industry.
Student answer
1) With respect to Japan,
(a) The primary core of regular employees (in the public sector
and large enterprises) constitute only about one-third of all
employees. The other two-thirds work for small or medium
enterprises or on a temporary or part-time basis and are often
not union members (they are usually not allowed to join).
(b) Lifetime employment generally applies to males. Employees
are expected to stay in the same company until their mandatory
retirement age. Companies tend to employ new school leavers or
graduates and train them with the expectation that they will
conform to the company’s norms and remain committed to the
enterprise.
(c) Unions consist solely of regular employees of a single
company regardless of their occupational status, up to the lower
levels of management. If you leave the firm then you leave the
union.
(d) Japan business association assists employers in dealing with
union demands during collective bargaining. Demand and
supply conditions in the labour markets, consumer price levels,
and business conditions are all factors in the influence in spring
offensive (Shunto).
(e) Nihon Keidanren (Japan business organization) coordinates
and publicizes employers’ opinions on labour problems, selects
representatives to government commissions and International
labour organizations delegations, and provides services to
member organisations.
(f) Rengo is Japan’s largest trade unions and has pursued
cooperative labour management relations. It has been difficult

6. to represent the interests of union members at the grass roots
level and has suffered in poor economic periods.
(2) With respect to enterprise unions,
(a) When compared to America, in Japan most union activities
occur at the enterprise level, and enterprise unions are
financially independent. The relationship between unions and
management is based on trust and mutual benefit and employees
support management initiatives to enhance the competitiveness
of the firm.
(b) In most unionised enterprises, there are elaborate joint
consultation mechanisms in which unions participate as
compared to European Nations. Japanese employment relations
are relatively stable and generally cooperative. Collective
bargaining focuses on pay issues, particularly during Shunto.