Archives June 2007

IT industry to create four million jobs in china

China IT services outsourcing industry could generate $56 billion in revenues and create four million jobs by 2015, a white paper released by Electronic Data Systems (EDS) has claimed.

IT outsourcing service providers in China could earn as much as $18 billion by 2010 and $56 billion by 2015, the report said, adding that the world’s second-largest IT service provider had also reached a strategic cooperation agreement to develop the IT outsourcing industry in China yesterday.

China Employment Contract Law Forum 2007

Promulgated 12 years ago, the PRC Labor Law remains the fundamental piece of legislation governing employment relationships in China. Soon that will change. The draft PRC Employment Contract Law, expected to be promulgated in mid-2007, will effect wide-ranging changes to the regulatory environment for labor relations nationwide.

—————————————————————————
Sponsor Link: DaCare Legal Search (China)
—————————————————————————

We take pleasure in announcing that TransAsia Lawyers will soon be hosting the China Employment Contract Law Forum 2007 with the official endorsement and support of the PRC Ministry of Labor and Social Security (MOLSS). Senior officials from the National People’s Congress, State Council, the MOLSS and the local labor bureaus of major cities will support and speak at the event. The forum will focus on the legal interpretation of the new PRC Employment Contract Law.

The Forum is scheduled for 23 – 24 July 2007 at the China World Hotel in Beijing* and will focus on the significant, wide-reaching legal interpretation of the new employment contract law. Several influential government agencies will be involved in the Forum: senior officials from the National People’s Congress, State Council, MOLSS and All China Federation of Trade Unions will attend and speak. A number of leading multi-nationals will also participate.

Recommended attendance for:

CEOs
HR Directors and Consultants
Lawyers and In-house Counsel
Business Advisors
Academics

The forum will be the first time that senior PRC officials and legislators will appear on the same platform to discuss the new law. It will therefore provide a unique opportunity for attendees to hear authoritative interpretation of the law and to share their own thoughts directly with key individuals involved in the regulation of employment law in China.

To date, we have confirmed the following keynote speakers:

* Mr Zhang Shicheng, Deputy Director of the Legislative Committee, National People’s Congress;
* Mr Li Jian, Director-General, Labor and Social Security Department, State Council;
* Mr Yan Baoqing, Director-General, Legal Affairs Department, MOLSS;
* Mr Qiu Xiaoping, Director-General, Wages Department, MOLSS;
* Mr Rui Lixin, Deputy Director-General, Legal Affairs Department, MOLSS; and

For an outline of the above speakers’ topics, please click here.

* Mr Zhang Shouqi, Deputy Director-General, State Administration for Social Security;
* Mr Xu Shuli, Director, Wage Department, Beijing Labor Bureau;
* Mr Li Yanjun, Director, Employment Contract Relationships Department, Tianjin Labor Bureau;
* Mr Zhu Deliang, Director, Labor Disputes Department, Guangdong Provincial Labor and Social Security Administration; and
* Ms Isabelle Wan, Senior Partner, TransAsia Lawyers.

Additional distinguished speakers, including senior judges, local labor bureau officials, HR directors, and legal counsel from well-known multinationals, will participate as panelists.

We will continue to update this page with further details regarding the speakers and program of the Forum.

http://www.transasialawyers.com/pp.php?id=laborforum2007

China Power Shortage

Hiring, retention and motivation are huge issues for HR departments in China but it seems that even the best collective efforts of Recruiters and Line Managers would be insufficient to overcome the current shortage of electric power.

Reports from various parts of China indicate that companies, both local and international, are being held back by a shortage of power in their area. If this lines up exactly with the skills shortage, such the the supply of labour is reduced by the skills shortages to the level of supplied power, then that its all to the good.

But such conjecture belongs in the world of idle fantasy. You cannot achieve balance with two negatives. If only things were so easy.

The reality is that some parts of China, especially in the South, are only able to receive electric power 3-4 hours per day. So no matter how few less hires the company makes they cannot make up for the fact that they have to hire the wrong people. They should be hiring part-time people when in fact they are still hiring full-time people. The hiring market in China is so strong it is very hard to get people to do part-time work. Electic power shortages are unpredictable and this makes workforce planning that bit more difficult.

A variety of different culprits have been identified. These have been variously; the white hot rate of economic (not new), delays in new plant opening (plannable), government efforts to close down old, polluting power plants (delayable) and a lack of fuel (bizarre).

(It¡¯s worth noting that it is currently ¡®Huang Meitian¡¯ in China, despite reports that it will start next Sunday, and the power situation can only get worse. Humidity rates are already above 80% and air-conditioning is prefererable 24 hours per day. Soon air-cons all over China will be left on permanently.)
Time to Re-Think?

The worst case scenario is that international companies begin to re-think their investments in China. Fortunately, and strange as this word may sound, the power shortage has been going on for many years. CEOs of multinational companies have already factored it into their investment plans. No one expects China to have the kind of electric power transmission system that exists in Germany or Australia.

But at the same time there are many other countries bidding for any given MNC¡¯s investment. FDI is fickle and can go into reverse very quickly if sentiment changes. India looms large on China¡¯s competitive world map.

Since around the year 2000 companies have shifted to a very ¡®lean¡¯ approach to their business, such that a delay in one part of the supply chain ripples quickly through to the other parts. A ripple from the Workshop of the World could mean a red tide for other places.

That¡¯s a risk most CEOs won¡¯t take.