McDonald’s China To Set Up 40 Trade Unions In East China

According to the All-China Federation of Trade Unions, McDonald’s China has promised to establish trade union branches in its 40 restaurants in Zhejiang province this year.

An ACFTU spokesman told local media that Zong Hao, central region human resources director with McDonald’s China, made the remarks when visiting the Zhejiang Federation of Trade Unions.

The move would boost the development of labor relations, upgrade the fast food giant’s social image in China and help it fulfill its social responsibilities, said Chen Dingxin, ZFTU vice chairman. Chen said he hoped McDonald’s China would lose no time in fulfilling its promise in accordance with China’s regulations on trade unions.

Earlier this month, Kong Xianghong, vice chairman of the Guangdong Trade Unions Federation, said McDonald’s had promised to set up trade union branches in the southern Guangdong province before July this year. But a spokesman for McDonald’s in Guangdong refused to confirm Kong’s claim and would not comment to local media.

McDonald’s, KFC and Pizza Hut have been criticized for paying their part-time employees in Guangzhou just RMB4 per hour, up to 40% less than the city’s statutory minimum wage of RMB7.5. However subsequent government inspections found no problems with the foreign fast food operations.

Western China Favors Green Investment

Officials in northwest China’s Shaanxi Province are calling for more green investment and urging local governments not to sacrifice the environment on the altar of economic growth.

Yuan Chunqing, governor of Shaanxi Province, says that local governments in northern Shaanxi should carefully assess the environmental impact of investments, especially energy exploration projects, and should not promote those which threaten the environment. Yuan made the remark at the 11th Investment and Trade Forum for Cooperation between East and West China which kicked off on April 6 in Xi’an. Domestic investors have signed contracts worth nearly RMB172 billion up 36.7% from the previous year, at the forum.

According to Yuan, the underdeveloped western regions should be on the watch for industries seeking to transfer pollution from the east.

Waste water processing, healthy coal mine exploitation and other environmentally friendly programs were also the focus of the forum. Local media report that Climate Change Capital from Britain are going to invest US$500 million in the next five years into China’s clean resource utilization and the company says that western China’s actions in energy conservation has brought them great business opportunities.

CSR Agenda Imperialists

By David Wolf

The client was a Fortune 500 company that had just celebrated completing two decades in China. They had been through all of the phases of the localization process. They understood the market and were leaders in their sector. China was their largest market in the world. They knew what they were doing. Then came the day when we started talking about their corporate social responsibility program.They were spending upwards of US$10 million a year on their CSR efforts, and there was nothing that they could recognize as return-on-investment. Company executives couldn’t understand why. They were doing all the right things: well planned programs, leveraging the company’s core competency, and genuinely doing a lot of good on the ground. They were even winning awards in the United States for their efforts in China.

And yet, nobody in China seemed to care. The press weren’t picking up the story. Most government officials knew nothing about the program, and those that did, shrugged it off. The company was so frustrated they were considering dumping their China CSR program entirely.

After the executive we were meeting finished, one of my colleagues asked a simple question. “How did you develop your China CSR program,” she asked?

“Well, our team here worked with our CSR people back in the States,” came the reply.

My colleague probed further. “Did you involve the government in the process at all?”

Puzzled silence. “No. We didn’t see the need to. We saw a problem that needed fixing, knew we had the core competence to fix it, and went and did it. We’ve done great work.”

This, of course, was the problem. Our client was an Agenda Imperialist.

Seeing a problem that you know you can fix, then going out and fixing it, is by no means a bad thing. That is, after all, the core of the entrepreneurial spirit that drives successful businesses throughout the world and, increasingly, in China.

The instincts that serve us so well in commerce, however, do not always serve us as well when seeking to better the communities in which we operate, but especially if we want to get something more than quiet satisfaction for our CSR efforts.

Simply showing up and unilaterally deciding you’re going to go out and fix something in China – even if it is driven by a global CSR agenda with the best of intentions – is not going to make you friends here. At best, you’ll get no credit for your work. At worst, you’ll be branded a paternalist or a neo-imperialist.

Creating great corporate social responsibility in China is a matter of balancing three agendas: your company agenda (what it seeks to accomplish in the PRC and globally), the global agenda (the clear social challenges upon which most of your global audiences would agree), and the China agenda (the social priorities of the Chinese government and people).

The plain truth is that the more you weight the China agenda in your calculations, the more people in China will acknowledge the value of your efforts.

That’s not rocket science, but it’s apparently not terribly obvious. A few years ago, I was peripherally involved in a major project auditing the CSR efforts of multinational technology companies in China. Of all the companies we researched, only one was getting significant ROI, acknowledgement, and appreciation from Chinese. Not surprisingly, it was the only company who dumped its global CSR program, bypassed the prescriptive, company-and-global-viewpoint-centric approach, ignored the imprecations of well-meaning NGOs, and instead based its program on an interactive process that engaged government, academics, and media.

The message is fairly clear. There are many ways to create meaningful change in China, even as an agenda imperialst.

But if a core goal of your CSR is acknowledgment, appreciation, or even support from audiences here in China, you had better make sure you are addressing the issues that Chinese find most pressing in a manner Chinese can understand that attains results Chinese can appreciate.

Job data may see Aussie rates rise

AUSTRALIAN employment climbed in March and the jobless rate fell to a 31-year low as builders and retailers hired more workers, raising expectations the central bank may raise interest rates as soon as next month.

Employers hired an extra 10,500 staff after adding a revised 23,200 in February. The jobless rate dropped to 4.5 percent from 4.6 percent, the Bureau of Statistics said yesterday in Sydney.

The median estimate of 22 economists was for 15,000 new jobs and an unchanged unemployment rate, according to a survey by Bloomberg News.

A worker shortage is driving up wages and consumer spending, underpinning an economic expansion now in its 16th year. Futures and currency traders have bet the Reserve Bank of Australia may soon raise interest rates after it warned last month inflation is likely to be “too high” this year.

“The Reserve Bank’s concerns about wages growth putting pressure on inflation are justified,” said Jarrod Kerr, an economist at JPMorgan Chase & Co in Sydney. “It’s a very resilient, very tight labor market.”

The Australian dollar rose to as high as 82.73 US cents from 82.45 US cents immediately before the report. It traded at 82.56 US cents at 4:30pm in Sydney. The yield on the benchmark 10-year government bond rose 1 basis point, or 0.01 percentage point, to 5.93 percent.

The number of full-time jobs rose 31,200 in March, the report showed, and part-time employment dropped 21,200. About 10.4 million of Australia’s 20.8 million people are employed, and the economy has created 276,600 new jobs in the past 12 months.

The Reserve Bank raised its benchmark interest rate three times last year after annual inflation breached its target range of between 2 percent and 3 percent for three straight quarters. The overnight cash rate target is at a six-year-high 6.25 percent.

A Credit Suisse index of futures contracts put the probability of a May interest-rate increase at 63 percent.

College grads offered rural jobs

THE city is recruiting more than 500 recent college graduates to work in local rural areas as teachers, doctors and government officials to aid social development, the Shanghai Personnel Bureau announced yesterday.

The graduates will be dispatched to the city’s 10 less-developed suburban districts such as Nanhui, Qingpu, Fengxian, and Chongming County for at least two years.

Each applicant that passes an academic test and a physical check will be granted a living allowance of 1,790 yuan (US$224) each month, plus an annual government bonus of 7,000 yuan to 18,800 yuan.

That puts their monthly income at 2,000 yuan or more in the first year – higher than the city average for new college graduates.

“We offer a favorable package to make the rural positions an attractive choice for graduates struggling in the fierce job market,” said Chen Hao, the personnel bureau’s vice director.

He added that the bureau was also building a talent database to track elite graduates with the hopes of enticing them into a career as senior civil servants.

The bureau doesn’t guarantee the graduates a job after their rural service ends, officials said.

Last year, the bureau posted 500 similar medical, teaching and government administration positions in rural areas.

However, only 259 positions were filled due to a shortage of qualified applicants, especially in the medical sector.

Bureau officials said they were not sure if all the positions would be filled this year.

Labor switch for expats

EXPATRIATES who have a labor dispute with their employer will need to apply for government mediation at the Shanghai Labor Arbitration Committee from next month.

The city’s new labor arbitration regulation takes effect on May 1, the Shanghai Labor and Social Security Bureau said yesterday.

The new regulation states that employees usually filed a labor arbitration application at district-level mediation committees where the company is located.

Sui Wei, vice director of the bureau’s arbitration division, said that the clear division would enable government mediation to work more efficiently.

Cases involving foreigners, employees from Hong Kong, Macau and Taiwan, as well as foreign invested companies with registered capital of US$10 million or above, will only be accepted at the city-level committee.

But the Pudong New Area Arbitration Committee will also be allowed to handle cases involving big foreign-invested companies registered in the district.

Previously, no division was made about where cases would be handled.

Overseas applicants should file in written form within 60 days of a dispute. A work contract and work permit are required, officials said.

The Shanghai Labor Arbitration Committee is at 45 Anyuan Road.

Taiwan Funded Companies Top Labor Law Violators

The Zhuhai Labor and Social Insurance Department has concluded after their two years of labor inspections that Taiwan companies who run businesses in Zhuhai have ranked highest in labor law violations.

Local media reports that ZLSID says many of the bosses from these Taiwan companies have inadequate legal knowledge and they therefore tend to ignore the rights and interests of the workers and of their own social responsibility.

ZLSID has checked and punished 26 companies that had refused to execute the minimum wage or asked employees to work overtime. Of those, 11 are Taiwan funded companies. Some officials from the labor department say that most of the Taiwan companies are labor intensive enterprises, so they face a shortage of labor, and that’s why they often asked the employees to work extra hours. Besides, as the bosses of these companies know little about the mainland’s labor laws or they intentionally disregard the employees’ rights, they pay the employees less or even deduct money their salaries.

ZLSID says it will now focus on fixing the illegal behavior of Taiwanese companies as the next stage of its work.

Drive to educate brand managers

FACING a shortage of brand management professionals, the Shanghai Economic Commission has launched a training program to cultivate managers for local big enterprises this month.

The proactive approach is to introduce the most advanced brand concepts and international experience on strategy, design, communication and management.

“Experts from universities and multinational enterprises have been invited to train qualified brand managers,” said economic commission spokesman Li Bai. The program includes 80 classes in six days.

“Following a long-term neglect of brand consciousness, Chinese brands have lost out in the pace of globalization,” said an official surnamed Yang in the scarce talents training center. “Now many corporations have realized the urgency to solve the shortage and improve the quality of brand management.”

So far the program has attracted more than 200 leaders from state-owned businesses, which are facing challenges and opportunities in promoting their brands overseas.

Minimum Wage Standard Implemented In Guangzhou

April 6, 2007
News from Guangzhou Municipal Labor and Social Insurance Department is that from April 1, the minimum wage of RMB7.5/hour has been implemented among all non-full-time employees in Guangzhou, excluding Huadu, Fanyu, Chonghua and Zengcheng.

At the end of last year, GZMLSID released the province’s first minimum wage standard for non-full-time employees. The standard consisted of five categories, ranging from RMB7.5 per hour to RMB4.3 per hour. The standard for Guangzhou is RMB7.5 per hour, which is the same as that of the provincial level minimum wage. The minimum wage for non-full-time workers in Huadu, Fanyu, Chonghua and Zengcheng is RMB6.6 per hour.

A representative from GZMLSID emphasizes that this minimum wage standard is only applicable to non-full-time employees, such as those who work on an hourly basis and work for no more than five hours a day, and no more than 30 hours in a week. The person says that companies should sign full-time labor contracts with those who work for more than 30 hours a week.

At present, Guangzhou’s food and beverage industry uses the most non-full-time employees.

Center For NPOs Opens In Shanghai

A city based development center will open in Pudong, Shanghai this month to serve as an incubator of nonprofit organizations.

“The capacity and accountability of grassroots NPOs are not strong enough. Many of them lack regular offices, stable source of funds and professionals,” said Lu Zhao, director of the incubation center. “So we have established an office center in Pudong for those NPOs for free.”

Funded by the local Pudong government, the center aims to provide support services to Shanghai’s growing not-for-profit sectors, especially grassroot NPOs.

As NPOs in China are still in their infancy, the center will provide professional training programs such as financial management, volunteer management, fundraising and strategic planning.

From this month, NPOs in the city run by members of the public can apply to become members of the incubation center.