Deep Thinking Behind The HUAWEI Incident

The provisions of the new labor contract law

In the upcoming labor contract law, the term "non fixed term labor contract" is most noticeable.

According to the fourteenth provision of the labor contract law, employees who work for ten years or more in the same unit shall sign an unfixed term labor contract.

Many enterprises regard it as increasing the pressure of human resources adjustment.

"In September 2007, all employees of HUAWEI, including Ren Zhengfei, who had worked for eight years in September 2007, had to take the initiative to resign before the new year's day in 2008, that is, to" voluntarily resign "and" compete for the job "first, and then sign a labor contract with the company for 1-3 years.

People familiar with the matter said that HUAWEI's move is intended to circumvent the challenge of the new labor contract law, which is to be implemented in January 1, 2008, from the practice of standardizing labor employment and maintaining the competitiveness of enterprises in the future employment system.

The new labor law, which was considered and approved by the Standing Committee of the National People's Congress on the 6 menstrual period of this year, stipulates that after the workers have satisfied the conditions of "having worked for ten consecutive years" or "two consecutive fixed-term labor contracts", they can conclude a "no fixed term labor contract" with the employing unit and become a permanent employee.

Although the compensation standard is attractive and the employees are voluntary, HUAWEI still can not escape the condemnation of the media.

For a time, a spectacle of 7000 people resigning in a collective way, a feat of 1 billion yuan, a strategic move which was interpreted by HUAWEI as a way to enhance the competitiveness of its employees, was also seen by the outside world as a conspiracy to deal with the labor contract law, so as to unload the burden on the body and even a provocation against the new law. HUAWEI's "resignation storm" was heated by the public's attention. Was it a normal strategic adjustment or an unusual spoof?

Everyone has spoken for a moment and all kinds of statements are rampant.

"HUAWEI's collective resignation storm" is embroiled in the cusp of public opinion.

In mid November, in view of the recent resignation of 5100 employees in Shenzhen HUAWEI Technology Co., Ltd., the chief responsible comrades of Guangdong Federation of trade unions met with HUAWEI senior vice president in November 9th.

At the same time, HUAWEI has suspended some employees from resigning and competing for jobs, and is preparing to convene a staff congress to submit the interim provisions which have been directly related to the interests of employees to the Staff Committee for deliberation.

But at this point, one of HUAWEI's "old employees" told reporters that the HUAWEI employees' re appointment was actually completely over, and the labor contract was re signed to start work according to the new contract.

Therefore, there is no moratorium and no suspension, suspension and non suspension.

All the employees have been on the right track, and the storm is over.

Although the resignation of HUAWEI seems to disappear, it leaves us deeper thinking.

In this hustle and bustle, too many people can not see the intention of a business to evade the law intentionally or unintentionally. When we focus our attention on the behavior of enterprises, we lose the basis of objective analysis.

In fact, the ultimate goal of the problem is precisely the starting point of the problem - the law does not seem to be simple, but it is often not too difficult.

(Heng Pang)

Event link

The new labor law is about to take effect, and enterprises begin to agitation.

Thousands of small and medium sized shoe enterprises in Guangdong Province have taken the initiative to go out of business.

The labor contract law, which is about to be implemented, is becoming the last straw to crush small and medium-sized shoemaking enterprises.

According to a survey conducted by the footwear association of Asia, about 500 shoe manufacturers in Guangdong have closed down in the past three months.

This statement was confirmed yesterday by a number of large shoe companies in Guangdong. The unprofitable situation has led weaker enterprises to take the initiative to close down and close down before the end of December.

Li Peng, secretary-general of the footwear association of Asia, said in a media interview that in recent two or three months, four hundred or five hundred small and medium-sized factories in Guangdong have been closed, and 200-300 of the 1000 shoemaking enterprises in Dongguan alone have been closed.

"The new labor contract law, which is about to be implemented in January 1, 2008 and the combination of two taxes, is becoming the last straw to crush the camel".

Liu Kun, general manager of Guangdong Golden Shoe industry, said that the cost of these factors increased by more than 20%, and overseas purchasers such as the US and Europe did not accept new quotations after rising costs.

In fact, relocation is not confined to the footwear industry.

With the approaching of the implementation schedule of the labor contract law, many foreign-funded enterprises are taking inventory of the total amount of human resources and the length of service of the employees, and analyzing the cost that will be added to the enterprises after the implementation of the new law.

Previously, UNIQLO, one of Japan's largest clothing retailers, announced that the ratio of products to be produced in China will be reduced from 90% to 60% by 2009, and that the proportion of production in Vietnam and Kampuchea will increase to more than 30%.

(Song Jing)

WAL-MART to lay off 1200 people or respond to new labour laws

WAL-MART, a global retail giant, has set off a layoff storm in China.

A dismissing WAL-MART employee revealed that on the same day, WAL-MART global sourcing center was located in four branches in Shenzhen, Shanghai, Putian and Dongguan, all of which issued a cancellation order.

"A total of more than 1200 employees will be divided into 200 batches, with a ratio of more than 15%."

In response to layoffs, WAL-MART gave the N + 1 compensation scheme (n for working years), that is, a person who works for two years can get 3 months salary compensation.

As far as compensation is concerned, the practice of WAL-MART is in conformity with the provisions of the labor law.

WAL-MART is not the first to argue about labor issues and employees.

Earlier, WAL-MART was criticized by the all China Federation of trade unions for its refusal to build trade unions.

At present, WAL-MART has two systems in China, one is WAL-MART Global Sourcing Center (purchasing system), the other is WAL-MART China (supermarket system).

So far, WAL-MART has only established a trade union in the supermarket system, and no trade union has been established in the procurement system.

"If there is a trade union, then such a large-scale layoff must be carried out through trade unions and by trade unions, representatives of workers and management."

The lawyer said.

After January 1st next year, the new labor contract law will be implemented.

The new law is more beneficial to employees in overtime work and contract termination.

- there are different opinions.

"First, it is generally believed that it is evading the law, and the whole image and reputation of the enterprise has been negatively affected.

No matter how you explain, people have their own opinions. Second, for employees, there may be some support, for example, you can get some money to compete for posts.

But can you guarantee that everyone is on duty?

And certainly not everyone can take up posts. How many people will be laid off? Maybe it is the top secret of the enterprise.

Does it have negative effects on cohesion and cohesiveness of enterprises?

Third, HUAWEI allegedly produced 1 billion funds to solve this problem.

Is it worth the cost?

If we obey the law, is there a better way to deal with it? "

"HUAWEI has three losses," said Chang Kai, head of the research group of the labor contract law and professor of Renmin University of China.

"When job hopping has already formed a culture, enterprises can prevent employees from job hopping, and staff anti enterprise layoffs, and no fixed term contracts can only be on the surface as a way to protect workers' interests, and can not solve the fundamental problem."

-- Sheng Junhua

"Like the new labor contract law, the protection of the rights and interests of laborers is further refined. Because of the large scale of layoff adjustment, because the staff area is very extensive, it is a different matter for the outside world, the legal profession, including the entire human resources field, whether HUAWEI can evade the new labor contract law, whether it is generally acceptable or not, but at present, HUAWEI has such suspicion.

Zhang Fan, lecturer of China University of Political Science and Law

"This adjustment is also to a large extent in order to solve the problem of" precipitation layer ", through the re recruitment of veteran employees, stimulate their enthusiasm for re starting business, and eliminate some employees who are not suitable for the development of the company.

Ji Yongqing, senior journalist of IT manager world magazine, "HUAWEI incident is a passive execution of law".

Professor Xiao Mingzheng, director of resource development and management research center, Peking University

- policy

All in all: employers' illegal "Persuading" obstruct social harmony.

The reporter recently learned from the all China Federation of trade unions that, in the case of illegal layoffs, the resignation of workers, the signing of labor contracts, or the conversion of labor contracts to other employers in order to circumvent labor law and labor contract law, the general committee made a clear statement that these actions had a negative impact on the building of a harmonious socialist society.

According to the head of the general assembly, due to the misunderstanding of the law, some employers recently adopted the form of labor contract, such as asking employees to resign, re signing labor contracts or changing labor contracts to avoid labor contract law.

A small number of employers even illegally implemented economic layoffs, and once a large number of workers' employment contracts were lifted.

In response to this, the chief executive issued a circular specifically pointing out that these violations and evasion of the existing labor laws and regulations and the upcoming labor contract law not only directly infringe upon the legitimate rights and interests of workers, but also affect the harmony and stability of labor relations, and have a negative impact on the construction of a harmonious society.

The notice requires that trade unions at all levels should actively reflect to the local Party committee and government on the resignation of the employers forced the workers to resign and ask the workers to change their "employment status" or illegal economic layoffs.

It is necessary to support and help workers whose rights and interests are violated to safeguard their rights and interests through legal means.

The typical cases of bad nature and great influence must be carried out in the end and will not be tolerated.

HUAWEI and other enterprises to allow employees to work for more than ten years to re sign labor contracts, so that the length of service staff "zero" approach, contrary to the provisions of the labor contract law.

Recently, the head of the Standing Committee of the National People's Congress Law Committee for the first time responded to the recent hot issues surrounding the labor contract law, saying that the termination of the contract before the implementation of the labor contract law should be based on the labor law.

Guangzhou urgently calls for the scale of layoffs to meet the requirements for "speculation".

The number and proportion of layoffs laid down by employers can meet the requirements of two statutory conditions before they can "stir up people". The intention to circumvent the "labor contract law", which is playing the role of "termination of expiry", "change of labor service" or "persuasion to re sign", will be totally invalid.

Recently, the Guangzhou Labor Insurance Bureau issued the Notice No. 2007, No. 177, on strengthening the management of large-scale layoffs for employers.

The notice clearly stipulates that before December 31st, except for bankruptcy or serious difficulties in production and operation, and in line with the conditions of large-scale layoffs, the remaining employing units must continue to perform labor contracts with the workers, and shall not terminate labor relations arbitrarily with other excuses.

The conditions for large-scale layoffs: on the verge of bankruptcy, declared by the people's court to enter the period of statutory reorganization; serious difficulties in production and operation are within the scope of difficult enterprises determined by the municipal government.

The definition of large-scale layoffs: a layoff of more than 20 people; over 20 people were laid off from December 14th to December 31st; less than 20, but over 10% of the total number of employees.

The applicable act of the notice: dismissal or termination to the laborer by resigning or changing the employer's main body, including changing to the labor dispatch or labor contract, etc., and changing the labor contract and other names, lifting or terminating the labor contract or relieving the factual labor relations to carry out large-scale layoffs.

The applicable units of the notice: Guangzhou municipal and municipal enterprises, individual economic organizations, private enterprise units, and state organs, public institutions and social organizations.

The three highlights of the notice are: 1. The change of the employment subject such as labor dispatch and labor contract is included in the scope of application.

2, scale the termination of labor contracts as a response to the current crisis management, which will be included in the scale before the end of the year.