Labour crackdown may backfire as China's economy slows

Significance

The final quarter of the year saw a dramatic increase in the number of recorded strikes and protests by workers, bringing the full-year figure to nearly 3,000 -- more than double the previous year. The authorities, which traditionally handled such incidents by compensating aggrieved workers using public money, appear now to be cracking down on labour activists and labour rights organisations.

Impacts

• Labour activists and labour rights organisations in the Pearl River Delta region will be forced to keep a lower profile.
• The official trade union will pledge reform but is unlikely to play a more effective role in mitigating labour conflicts.
• Local governments will struggle to deal with failing industries and workers demanding wage arrears, redundancy pay and social security.
• Provincial and local authorities could face more pressure from the central government to crack down on social unrest.