Category Candidates & Labor market

Getting a grip on labor

A comprehensive survey of labor to be launched by national statistic authorities this year is badly needed to replace the current unemployment data that covers only urban residents.

As the deepening global financial crisis and domestic economic woes tightens the employment prospects of millions of migrant workers and college graduates alike, the narrowly defined urban-registered unemployment rate can no longer provide the accurate information needed by policy makers.

Though the Chinese economy significantly slowed down later last year, the official unemployment rate released quarterly by the Ministry of Human Resources and Social Security showed only a mild climb from 4.0 percent a year to 4.2 by the end of 2008, with the number of registered jobless urbanities standing at 8.86 million.

Compared with the 11.13 million urban jobs that the country created last year, such a 0.2 percent increase in unemployment did not really deliver a sense of urgency.

It was only when another government survey revealed that 20 million migrant workers lost their jobs before the Chinese lunar new year that the country was awakened to a grave reality.

The Ministry of Human Resources and Social Security recently estimated that the urban unemployment rate could reach 4.6 percent this year, the worst since 1980. But that figure is obviously far from enough to highlight the severity of unemployment pressure.

On one hand, salaries of migrant workers contributed about 40 percent of rural families’ income, so their job losses will make a huge dent in farmers’ income growth.

On the other hand, some 7.1 million university graduates, too, are expected to have a hard time this year as the number of new jobs falls in cities.

The Chinese authorities have urged governments at all levels to make every possible effort to expand employment.

Nevertheless, if they want to come up with adequate policy responses, they first need to have a firm grip on the problem they’re trying to address.

Therefore, statistical officials should do their utmost to ensure the success of the comprehensive survey of the labor force that they will conduct in four municipalities and more than 20 provincial capitals this year before extending it to the whole country in 2010.

Managerial staff still in demand

Chinese firms are continuing to hire managerial staff despite the economic slump, with media professionals and accounts in most demand, an international poll has found.

Recruitment has remained relatively strong in China, with 43 percent of businesses taking on managerial personnel, according to a quarterly survey by Antal International this month.

The figure is expected to fall to 20 percent next quarter but the number of companies letting staff go will also drop, keeping the market stable, the survey said. “The global financial situation has certainly had an effect on the jobs market here, but conditions are still relatively strong,” said Robert Parkinson, who runs Antal’s operations in China.

“Hiring activity is down from the last quarter but at the same time so is the number of companies firing managerial staff,” he said. “It suggests organizations are still looking for new talent but with caution, waiting to see what happens in the coming months.”

The media, particularly for those with IT and Internet technical knowledge, is a strong employment area, with hiring expected to rise to 60 percent in the next quarter and firms laying staff off set to drop by 7 percent.

“The demand for IT and Internet media professionals reflects a demand in distant communication through technical assistance, a result of companies cutting traveling budgets during the economic slowdown,” Parkinson said.

Hiring rates for accountancy firms plunged from 96 percent last quarter to 57 per cent, but sackings will fall from 27 percent to 7 percent next quarter, the survey said.

Automotive companies are expected to fire more people, with a predicted rise from 13 percent to 20 next quarter, while hiring dropped from 86 percent last quarter to 37 and is expected to fall again to 23 percent next quarter.

In banking “hiring has seen a rebound”, says Parkinson. The economic crisis highlighted the importance of managing personal wealth, resulting in a lift in private banking and risk management services, he said.

(China Daily February 9, 2009)

China’s economic crisis puts labour reform on hold

China’s ruling communist party has already seen its economic miracle knocked off course by the downturn in global trade and now the government is faltering on another cornerstone of its plans to modernize the country by developing the rule of law.

Amid mounting job losses and factory closures, Beijing has made dealing with the immediate economic crisis priority number one and that means some longer-term plans such as improving labour laws have been sidetracked.

“China’s leadership is clearly wavering on what they want to do,” said Andreas Lauffs, a Chinese labour law expert at Baker & McKenzie in Hong Kong. “Is it rule of law or is it ad hoc policies?”

Last year, Beijing enacted a new Labour Contract Law that was seen by many as a landmark designed to protect workers and clarify the rights of employers too. The new laws were also seen as part of a wider trend toward a more modern system of commercial laws that included improving patent laws and rules on mergers and acquisitions.

But those developments could be in jeopardy as the government diverts its attention to righting the country’s wavering economy that has slowed to its weakest growth in years, largely because of the sharp decline in global trade.

Faced with massive unemployment — latest official estimates released Sunday indicate 20-million migrant workers have been laid off since the downturn began late last year — Chinese authorities are apparently showing flexibility and inconsistency on the enforcement of the new laws.

For instance, provisions on mass layoffs were recently rewritten so that firms looking to lose 20 people or 10% of their workforce must get approval from local authorities. “Effectively they are saying collective dismissals are not encouraged,” Mr. Lauffs said. “They are asking employers to reduce payroll, change working hours, do whatever they can to avoid collective dismissals. The government doesn’t want large numbers of people unemployed, they don’t want labour disputes, they don’t want people marching in the streets.”

Meanwhile, some provincial authorities have introduced measures that undermine the prosecution of wrongdoing by influential business owners. In January, officials in Guangdong province — home to a third of China’s export sector — declared that company owners suspected of breaking the law should be “handled prudently” so as to avoid disrupting business activity wherever possible, according to state media.

The Guangdong guidelines were mimicked by other local governments in areas hit by the downturn in the economy. But the local authorities also drew fire from official news agency, Xinhua News, which said in a op-ed piece last week that the policy is “inadvertently creating loopholes to allow crooked magnates to hide evidence of their wrongdoing.”

The Xinhua report continued: “Keeping jobs, and thus social stability, is a valid concern during hard times. But is equality before the law to be the price for this stability?”

Beijing also faces some embarrassment over a World Trade Organization ruling last week that backed the United States in a case related to China’s efforts to protect and enforce international copyrights and trademarks. Washington had said China failed to provide proper patent protection for imported products and challenged what it called shortcomings in Chinese copyright laws. The Chinese government, which has made strides to improve patent and copyright laws in recent years, said it regretted the WTO decision and pledged to work toward improving healthy global trade relations.

Observers of China’s commercial laws are also eagerly watching how authorities treat a bid by Coca-Cola Co to buy Chinese drinks company Huiyuan Juice Group Limited, which is being scrutinized under a new anti-monopoly law introduced last August. The US$2.4-billion deal is seen as a test for the new law, and whether authorities in Beijing are prepared to let a prized domestic brand fall into the hands of a foreign owner.

Zhao Yun, an associate professor in the faculty of law at Hong Kong University, said China has made “remarkable progress in constructing a solid commercial law framework,” since admission to the WTO in 2001. New guidelines on labour arbitration have improved workers rights and established a process for dispute resolutions, and there have been positive developments on property and tax law, as well as on data protection law, for instance.

Nevertheless, Mr. Zhao acknowledged “there are still problems in the enforcement of the new [labour] law. For example there is no independent workers’ union to represent the interests of the workers, so this will affect the functioning of arbitration and mediation.”

New Labor Laws in China Could Hinder Investors’ Profit Potential

By Irwin Greenstein

New labor laws in China have forced the manufacturing sector into an ever-tightening vice, giving investors further pause for any significant rebound in the world’s fastest growing economy.

In January 2008, Beijing introduced new workplace legislation called the Labor Contract Law. Its objective was to ensure job security by making cursory dismissals more difficult. The Labor Contract Law comes in on the heels of anti-discrimination labor laws instituted last year, which streamlined the process for workers to file grievances against their employers. As a result, labor disputes have surged by approximately 119% since last year as workers exercise their new rights.

While the global recession throws a monkey wrench into China’s manufacturing engine, the Labor Contract law could compound the crisis by making labor in China more expensive. In fact, there is evidence that factories are already moving to Cambodia, Vietnam and Bangladesh, which promote owner-friendly labor laws.

If in fact this migration turns into a stampede, China’s entire economy could suffer longer term damage than anticipated.

The higher salaries kicked in at a time when China’s manufacturing sector contracted for the fifth consecutive month in December, according to the CLSA China Purchasing Managers Index. In the first 10 months of 2008, 15,661 enterprises in Guangdong, the manufacturing-heavy southern province, shut down. China’s manufacturing shrank for a third month in December as export demand fell, suggesting a long-drawn-out economic slump.

Manufacturing comprises about 40% of China’s economic output. It comes as no surprise, therefore, that the World Bank forecast in November of last year China’s economic growth may slow down to 7.5% in 2009, the lowest since 1990.

While many of the closures are certainly tied to lower exports, factory owners are simply padlocking their doors rather than conforming to the more restrictive and expensive labor laws – often absconding with the employees’ back pay.

The labor laws also sanction the once-unthinkable notion of labor unions in China. All employees are now eligible to join the China Federation of Trade Unions [ACFTU], which is controlled by the Communist Party and has around 170 million members. The ACFTU is legally entitled to negotiate salaries, working hours, holidays, and benefits (although they are now allowed to strike). By the end of 2006, about 50,000 foreign companies in China entered into collective contracts and the ACFTU has said its goal is to unionize nearly all foreign companies in the coming years.

While unionization and labor laws are long overdue for workers, they also create a new investment climate in China that could reduce windfall profits across the entire economy.

China to build 5,000 internship “bases” to prepare youths for job

China is to build up to 5,000 “bases” in 2009 to provide internship positions for the young to better prepare them for the job market as it feels pain amid the global financial crisis.

The Chinese Communist Youth League, a government body for work related to the young, will coordinate in recruiting qualified companies and individuals, the League told Xinhua Monday.

The youth leagues at municipal or provincial levels will select suitable companies to form the “bases”, businesses or sets of businesses which will be able to provide positions for at least 10 interns each year with basic living allowances.

Qualified candidates for the intern positions are job-hunting fresh university or vocational school graduates, those who have failed to find a job since graduation, young laid-off workers, and young migrant workers.

The first group of nearly 2,000 such bases are already selected and made public, offering about 60,000 positions in the industries of finance, publishing, telecommunications, manufacturing and transportation.

The aim of this move is to ease the employment pressure and achieve a win-win situation between the companies and the youths, according to the Youth League.

The Ministry of Human Resources and Social Security (MOHRSS) said on January 20 that there would be 7.1 million college graduates seeking vacancies this year, including 1 million of those having failed to secure jobs last year.

The ministry also said, as of the end of 2008, there were 8.86 million urban residents registered as jobless, 560,000 more than the end of the third quarter.

China’s efforts to lure professionals home

New York, NY, United States, — The global financial turmoil that has led to tens of thousands of job losses in financial services has provided China with a golden opportunity to attract its overseas professionals, especially those at the high end, to return. However, the media coverage of China’s global talent hunt has left me feeling sick.
Here is a summary of what I have read:

A Ms. Yu, 43, who flew all the way from Charlotte, North Carolina, to New York City for a recruiting event, pitched hard to the recruiter sitting in front of her. “I’ve got experience in risk management,” she explained, naming the bank where she had worked and watching anxiously as the recruiter scribbled on her résumé. She breathed a sigh of relief when her résumé was placed in the review pile, implying that she might be called back for another round of interviews.

Close to 1,000 jobseekers traveled quite a distance by either flying or driving up to 10 hours to the New York event. Their wait in line for more than an hour ended up with a three-minute interview.

Some of the jobseekers who had worked in financial services for more than a decade said that their annual salary was somewhere between US$500,000 and $1 million dollars. But potential employers hinted that the highest pay available to them in China would be 1.5 million yuan (US$219,000).

Jobseekers traveled to the recruiting event on their own, waited in line for more than one hour for the opportunity of a three-minute interview, a recruiter scribbled on their résumés, and jobseekers were forced to reduce their salary expectations dramatically. This supposedly serious recruiting exercise seemed to me more like a bazaar where recruiters hoped to pick up cheap Made-in-China stuff, while jobseekers put straw on their heads to indicate they were willing to sell themselves cheap.

This happened because of the information asymmetry between jobseekers and recruiters. The former, who probably had either lost their jobs or feared for their future though still employed, were eager to find a way out. They learned that China needs talent, but did not know exactly what kind of talent is in demand, what positions are open, what credentials and experience are valued, and what compensation packages would be offered. In a word, they came to these events without knowing what to expect.

Indeed, most of those jobseekers left the events empty-handed. After attending a couple such fruitless recruiting events, even those who were seriously thinking of returning to China would have to reconsider their options.

Of course, some jobseekers might be fortunate enough to land a job. But I am not convinced that those with rich overseas experience would be willing to work for significantly lower pay. Those who do not complain about the low pay are most likely not the most talented; the truly talented would surely move to higher paying jobs if they became available. The “you-get-what-you-pay-for” principle applies to global talent as well.

In the meantime, I doubt that the recruiters know what talent they should be recruiting or have the ability to hire proper people. Most likely, those on these overseas missions are not professionals. Even if they are, given that the gap between the Chinese and international financial business is at least 20 years, they would not necessarily understand the expertise of the jobseekers and would have to wait for decisions to be made by their bosses back in China when they interview applicants. Even if they find a suitable person, the recruiters may not be able to hire him or her on the spot.

Therefore, such recruiting events are a kind of “zheteng” – a popular term of 2009, roughly translatable as “wasting time” or “flip-flopping” – for both jobseekers and recruiters.

Since the global recruiting tour is not attractive to true talent, especially experienced and senior-level personnel, and since it could produce nothing more than several kilograms of résumés at best, why are the Chinese so immersed in the practice?

The recruiters would claim that their search shows a respect for talent. In fact, the reality is just the opposite. Talent was valued when Liu Bei, a hero from the famous Chinese classic the “Three Kingdoms,” paid three visits to the cottage of Zhuge Liang, whom he wished to recruit as his adviser. It is not valued in a three-minute interview; sincerity is not shown by doing things carelessly.

Therefore, rather than embarking on an overseas talent hunt, China would be better off following the international norm.

First, Chinese institutions should place advertisements in media or on the Internet with such information as positions available, job responsibilities, working conditions, compensation and number of recruits required. If there are appropriate applicants, recruiters could chat with them over the phone first, shortlist them and invite them to China for face-to-face interviews. Finally, the employers should offer them jobs and sign contracts. In this way, both jobseekers and recruiters could avoid blind expectations and make the process more efficient.

As far as I know, few Chinese organizations would fly jobseekers to China for interviews. The return of overseas professionals, in addition to compensation, also is constrained by such equally important factors as the education of children and the arrangement of family life. Therefore, if China really wants to take advantage of the downturn and the widespread job losses to poach back much needed talent, it has to be innovative and concrete in these aspects.

Employers in China Have Issues Shedding Workers

Companies that rushed into China during the boom years may find it difficult amid the global downturn to extract themselves, labor law attorneys say.

“It wasn’t too long ago when the burning issue was hiring, recruiting and retention,” said Joseph Deng, a labor contract attorney with Baker & McKenzie in China. “Now it seems the No. 1 issue for many companies in China is cost cutting, termination and redundancies.”

Landmark labor laws enacted in China this year have strengthened protections for workers, including wage standards and Social Security benefits. But worker protections against employers looking to downsize their workforce may be among the most stringent, China law experts say.

Chinese labor law prohibits “at will” firing practices common in the U.S., which means employers must have a legal basis for firing any employee.

“The first thing you have to keep in mind is that employees have contracts,” Deng said. “You cannot unilaterally terminate a contract.”

Before making any layoffs, employers need to present their plans to employee-represented work councils at each company—called employee representative congresses, which are union organizations elected by employees. For employers whose workers have not organized into unions, any indication that the company intends to lay employees off could incite workers to organize.

Deng recommends that employers file a report of a strategic plan with local labor bureaus.

“They don’t approve a plan, but they play an important role in providing guidance,” he said.

Firing workers remains something of a taboo in China, as it is in much of Asia. Employers should present layoffs as part of a strategic plan rather than a cost-cutting measure, said Baker & McKenzie attorney Guenther Heckelmann, otherwise employers open themselves up to challenges from workers regarding how companies calculate their costs.

Employers are unlikely to be able to lay off groups of workers using criteria usually reserved for firing individuals, like showing a worker is incompetent or has behaved improperly. Employers must show a change in the company’s circumstances. For example, a company’s decision to idle a plant could qualify. Employers must then attempt to find new work for the employee before giving that person 30 days’ notice of his termination.

Dan Harris, a Seattle lawyer with the firm Harris & Moure, wrote in his China Law Blog that restrictions against at-will terminations may be the most stringently enforced requirements in China’s new labor law, which took effect January 1, 2008, and was preceded by a backlash among workers to worsening working conditions in China.

Harris wrote of a client who was told by a Chinese government official in Shangdong, a coastal province southeast of Beijing, that “so long as this company did not lay off any of its approximately 250 Chinese employees, the government would look the other way regarding other labor law violations.”

The popularity of the new law has tripled the number of disputes brought by workers against their employers, said Andreas Lauffs, the Hong Kong-based head of the employment law group at Baker & McKenzie.

“There’s not a single worker that doesn’t know this law inside out,” Lauffs said.

Earlier this year, a large multinational corporation represented by Baker & McKenzie negotiated severance packages with employee-established labor unions as a precondition for laying off the workers, Lauffs said.

All unions in China are organized under the nationalized All-China Federation of Trade Unions. While striking is illegal in China, workers have been known to engage in work stoppages and slowdowns. China legal experts are watching to see whether the economic slowdown will loosen the new contract laws in China.

The Chinese economy has been growing at around 12 percent a year. Officials have worried that a lower growth rate of 8 percent is the minimum needed to forestall public unrest. For now, though, the new labor laws remain intact.

“For multinationals, if they want to downsize as a result of the current economy, they’ll have to tread very, very cautiously,” Lauffs said. “China is no longer the place where you can go and set up shop with cheap labor and no labor laws.”

http://www.workforce.com/section/00/article/26/05/57.php

E(ast)-Recruiting

Harvard focuses more heavily on China in an effort to increase the diversity of the student body

By BENJAMIN K. GLASER
Contributing Writer

It wasn’t her school, it wasn’t a Web site, and it certainly wasn’t a recruiter that got Yichen Chen ’11 to apply to Harvard in 2006. It was a little help from her friends.

Like many students from mainland China, Chen, a native of Beijing, had to navigate the application process largely on her own. A loose network of friends, including other applicants, served as guides—even encouraging her to apply in the first place.

RED TAPE

“In China…there’s no such thing as a [guidance] counselor,” Chen explains.

In an education system that requires only one entrance exam for enrollment in national universities, Chinese students are often ill-prepared to apply to schools abroad. SAT testing is restricted; Chen traveled to Hong Kong for both the SAT I and SAT II exams.

“You feel like you are just trying to travel in the dark,” says Chen of her application process. “Sometimes there are lights around that are trying to point you in the right direction, but you can’t really trust every one of them.”

But Harvard administrators, like Dean of Admissions and Financial Aid William R. Fitzsimmons ’67 and President Drew Gilpin Faust, hope to increase Harvard’s presence in mainland China. Fitzsimmons and Faust’s recent high-profile trips to the People’s Republic of China are some of the current programs that have sought to promote connections and exchange between Harvard and mainland China.

“A leading university like Harvard has to be involved in areas where knowledge is being created and disseminated at really a revolutionary pace,” says Professor William C. Kirby, director of the Fairbank Center for Chinese Studies and chair of the Harvard China Fund.

HARVARD WANTS YOU

In the past few years, China’s higher education system has undergone an explosion in growth and development. According to Kirby, the university population has increased from five to 20 percent of the college-age population. Their aspiration, Kirby says, is to double that number. Currently, China has upwards of 26 million college and university students, in comparison to the U.S.’s fifteen million.

“If you look ahead 50 years from now,” Kirby says, “the only system of higher education that has the capacity to compete with, and perhaps exceed, America’s in many areas is China’s.”

Dean Fitzsimmons sees recruitment of the best and brightest Chinese students as an essential part of Harvard’s long-term vibrancy as an institution. In his view, an increased presence of Chinese students is necessary both to create a diverse student body and to maintain elite standards. “We are thinking generations ahead,” Fitzsimmons says. “We’re thinking much more competition.”

Kirby adds that some Chinese families are pleasantly surprised to hear that “you don’t need to be rich” to apply to Harvard. The University’s recruitment efforts are aimed at both clearing up current misconceptions and getting “people thinking about Harvard in very broad terms,” he says.

DIGGING TO CHINA

In October, preeminent Harvard mathematician Shing-Tung Yau organized the first annual Shing-Tung Yau High School Mathematics Award, a mathematical sciences competition held in Beijing. Fitzsimmons served as a judge.

While Yau established the program to “fulfill [his] dream to promote mathematics,” he acknowledges the benefits of interactions between Harvard representatives and Chinese students. “Harvard students and faculty should understand this country,” he writes in an e-mail message. “The participation of brilliant Chinese high school students [in future undergraduate life] will be very meaningful.”

While the Shing-Tung Yau High School Mathematics Award was not explicitly established to create stronger ties between Harvard and China, Harvard’s Shanghai Office does have such a mission in mind. Opened in the spring of 2008, the office seeks to promote and assist all sorts of University ventures in China. One of the office’s several goals is to facilitate Harvard admissions interviews, as well as providing “on-the-ground services” for students and faculty working and studying in the PRC, according to its Web site.

However, increased awareness has not yet translated into increased matriculation for mainland China’s students. The applicant pool from mainland China has more than dectupled in the last ten years—from 44 for the class of 2003 to 484 in the class of 2012. But the number of accepted students has remained amazingly consistent, around five each year. Fitzsimmons attributes the phenomenon to remaining obstacles, ranging from standardized tests to language skills. A lack of SAT scores and difficulties with English “will not be positive factors,” he says.

STUDENT MOVEMENT

Many student groups have taken matters into their own hands, often long before the University got in the game. Every summer since 2006, the Harvard College Summit for Young Leaders in China has brought Harvard undergrads to Shanghai to teach 300 Chinese high school students as part an intensive week of seminars, guest speakers and extracurricular activities.

“I really want a lot of Harvard students to step on the Chinese mainland,” says co-founder and Shanghai native Meijie “MJ” Tang ’09. She hopes that each trip will give Harvard students a better understanding of Chinese culture. As for the Chinese students, Tang hopes that they will find in HSYLC a love of the “true liberal arts education” and the “eagerness to learn” that she found at Harvard. Whatever HSYLC is doing, it must be working: 22 percent of their Chinese alumni are currently enrolled at prestigious universities abroad, including several at Harvard.

“There are so many programs I’ve heard about between Yale and China,” Chen says. “And Harvard should definitely be more awesome.”

—Lingbo Li contributed to the reporting of this story

Motorola staff facing layoffs

Telecommunications company Motorola Inc yesterday said it will cut the number of its employees in China as part of a global layoff plan amid financial turbulence.

The company is currently under an internal evaluation of its Chinese operations, which is aimed at reducing costs and streamlining its products, Chen Lei, spokesman for Motorola China, told China Daily. Details of the layoff may be disclosed in the next few months, he said.

Motorola last week announced a plan to cut 3,000 workers worldwide, with nearly 2,000 from its handset division. The announcement came after the firm disclosed a disappointing third quarter result, in which net losses amounted to $397 million, compared with a profit of $60 million one year ago.

Chen said Motorola’s arm in China will get more resources from its headquarters in the United States after a planned restructuring is completed. He said China’s strategic position in the company will be intensified.

Foiled by its inability to extend the success of its Razr mobile phone, Motorola’s share in the global handset market shrank to 8.4 percent in the third quarter of this year, down from 9.5 percent in the second quarter and 22.4 percent in 2006, according to research firm Strategy Analytics.

The company has also been struggling in the country from fierce competition by market leader Nokia, as well as the rising number of domestic venders and hundreds of pirated handset makers. According to research firm GFK China, Motorola’s market share in China dropped from nearly 20 percent in 2006 to less than 10 percent this year.

Such sluggish performance was said to have led to the unexpected resignation of Ren Weiguang, head of Motorola’s mobile business in China, at the end of last month.

Earlier this year, Motorola announced its decision to spin off its mobile division to turn around its handset business. But the reduced growth rate of global handset shipments in the third quarter, driven by the financial crisis, has clouded the company’s revival plan.

Pang Jun, analyst from GFK China, said the long-term effects of Motorola’s layoff plan are still unclear, but the move will at least help the company stem its bleeding in the short term. “The financial crisis will have a significant impact on all the mobile phone makers,” he said.

Pang said the growth of the mobile phone market in China, the world’s largest handset market, may drop to 15 percent this year, down from 30 percent last year. “The growth rate might be even lower in 2009,” he added.

China to amend law for smoother state compensation procedures

BEIJING, Oct. 23 (Xinhua) — China on Thursday discussed drafting an amendment to the state compensation law, which would guarantee smoother channels and improved procedures for victims seeking compensation from state organs.

State organs under compensatory obligations should decide whether to compensate or not within two months after receiving appeals, according to the amendment, which was being scrutinized by the Fifth Session of the Standing Committee of the 11th National People’s Congress.

Those who claimed compensation from state organs but were not satisfied with the result, could complain to the state organs’ superior departments, the amendment said.

If they were still not satisfied or didn’t receive prompt replies, they could appeal to the courts at the same level, according to the draft.

Problems including insufficient law enforcement against state organs under compensatory obligations, delays in making decisions and delivering compensation and a shortage of financing support had made it difficult for victims to protect their rights and interests, said Li Shishi, head of the Legislative Affairs Commission of the NPC Standing Committee.

“The amendment tackles those problems and will provide a quicker and easier way for them to seek compensation.”

Apart from those changes, the draft amendment would also increase an article about both victims and state organs’ obligations in providing evidence for their claims. It also, for the first time, added compensation for psychic injury.

To help victims get paid promptly, the amendment said state organs had to deliver compensation applications to the relevant financial departments within seven days of receiving a compensation invoices from the victims. The relevant financial departments should in turn pay the victims within 15 days.

The state compensation law was approved by the National People’s Congress in May 1994 and was put into effect starting in 1995.

It plays an important role in solving conflict between citizens and state organs, and to sustain social stabilities, Li said.