cross-posted from: https://scribe.disroot.org/post/1874059
An analysis by the China Labour Bulletin (CLB) 2024 labour data reveals a persistent disregard for workers’ rights by employers, corporations, and government authorities, even as China’s economic landscape shifts under the pressures of changing overseas investment, domestic demand, and evolving market structures across various sectors. Meanwhile, workers agitations in the manufacturing sector have surged to their highest levels in nearly a decade, despite a broader trend toward smaller-scale disputes, reflecting the transition to high-tech factories with fewer workers.
As companies prioritise cost-cutting measures and profitability strategies, workers’ wages, social insurance, compensation, and living subsidies remain at the bottom of the list—if they are addressed at all. This growing tension underscores the widening gap between corporate interests and the basic rights of the labour force, painting a stark picture of the challenges facing workers in 2024.
In this report, CLB broadly analyses the raw data collected in our Strike Map and conducts a sector-by-sector analysis of issues affecting China’s workers and their rights.
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Workers in the construction industry continued to see their wages remain unpaid in 2024, with residential projects being the main targets of protests. Although the Strike Map recorded fewer incidents in the construction industry in 2024 (733 incidents) than in 2023 (945 incidents), the sector continued to have the highest proportion of protests among industries. Across the country, Guangdong (134 incidents), Shandong (78) and Henan (46) – provinces that have seen significant investments in real estate and infrastructure in recent years – recorded the highest numbers of protests, a proportion similar to that in 2023 with Shanxi dropping out of the top 3. Among the types of projects targeted that CLB could identify, 50 percent were related to residential projects, around 30 percent in infrastructure projects followed by 20 percent in commercial projects.
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CLB’s Strike Map gathered information about 452 incidents in the manufacturing industry in 2024 – an increase from the previous year (438 cases) – at a time when international companies were eager to diversify their investments despite flat domestic demand. The incidents occurred mainly in the best-performing manufacturing provinces, with Guangdong witnessing a total of 166 incidents, followed by Zhejiang (63) and Jiangsu (39). While boasting of possessing the world’s biggest manufacturing economy, China’s manufacturing industry experienced another frustrating year in 2024.
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Last year, the Strike Map recorded 148 incidents in the services industry. Protests occurred predominantly in Guangdong (29 incidents) and Henan (13) followed by Sichuan (9) and Beijing (8). Three sectors that accounted for the most cases were catering (25.8 percent; 33 incidents), sanitation (24.2 percent; 31 incidents) and retail (14.1% percent; 18 incidents). Large-scale protests staged by hundreds of workers mainly occurred in the sanitation and medical sectors.
In the catering sector, protestors targeted big and small companies including restaurants and hotels, despite the backdrop of the national economy appearing to have improved slightly [while unemployment rates have risen].
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Of the 21 incidents recorded in the heavy industry, most occurred in the steel and metal sector (11 incidents), followed by the chemical sector (5). China recorded the highest steel exports in 2024 since 2015 but total output fell 1.7%. With the trend of urbanisation slowing down, the demand for steel for construction and infrastructure has fallen. The oversupply from steel mills as reflected in falling steel prices means competitive pressure in the sector. Market pressures along with bad management leaves workers in limbo as happened in the case of Xiangfen County XinJinShan Special Steel in Linfen. After being laid off by the steel company in late August, workers protested twice in September (13th and 27th) to demand their wages and a decent compensation plan. After financial scandals such as funds being transferred out from the company, it said it was owing debts and salaries to over 2,000 workers, according to a notice in early September.
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Conclusion:
First, trade unions must prioritise accountability to workers. CLB’s research highlights that union chairpersons, in many instances, are corporate executives, creating a conflict of interest that prevents unions from truly representing workers. To address this, unions must actively engage with workers to understand their concerns and proactively communicate with enterprises to anticipate workplace changes that may affect workers’ rights. CLB has long advocated for unions to reform their structures and practices to genuinely serve as representatives of workers, rather than reacting only after labour rights abuses occur.
Second, multinational corporations must be held accountable for labour rights violations in their supply chains. The enactment of new supply chain due diligence laws, such as Germany’s Supply Chain Due Diligence Act (2023) and the European Union’s Corporate Sustainability Due Diligence Directive (2024), provides a framework for greater corporate responsibility. At the United Nations Responsible Business and Human Rights Forum in September 2024, CLB presented its approach, demonstrating how workers in China use social media to share grievances and document labour rights violations, even in the face of internet censorship. This wealth of worker-generated information can hopefully enable companies to conduct due diligence and prevent human rights abuses in their supply chains.