RUDOLF TRAUB-MERZ| WAGE STRIKES AND TRADE UNIONS IN CHINA Chinese trade unions are characterised by their domi­nation by the management in the enterprise, while at higher levels – such as city, district, prefecture, province or central federation – they are controlled by the Party. It goes without saying that enterprise trade unions gov­erned by management 15 will not push for improvements in working conditions or higher wages which will in­crease costs. However, the ability of enterprise trade unions to represent the workers’ interests is neutralised not only by the embedding in the management, but also because of their political and legal enframing. Although the Law on Trade Unions lays down that they»represent the legitimate rights and interests of the workers«, 16 they must not operate as partisan representatives of workers’ interests, but rather orientate themselves towards the well-being of the enterprise, the Party and the»socialist state power of the people’s democratic dictatorship«. 17 How capitalist class interests govern socialist trade unions in the Chinese framework is illustrated by the concept of labour dispute mediation. Following Western procedures a three-stage model is envisaged, with inter­nal and external mediation, as well as court rulings. The mediation is tripartite. In the internal mediation commit­tee, however, the trade unions do not line up on the side of the workers, but take the chair and negotiate a recon­ciliation of interests between employer and employees. 18 They are institutionally obliged to reconcile interests, not to articulate them. The same applies to walkouts. China does not recog­nise an explicit right to strike, although the Law on Trade Unions does mention»work stoppages«  19 and»slow­15.»Take Guangzhou, the capital city of Guangdong Province, for ex­ample. Among the approximately 20,000 grassroots trade unions, nearly 50 per cent have chairmen who are also employed as deputy general managers or the equivalent in the company«(Kong 2011). 16.»The basic duties and functions of trade unions are to safeguard the legi­timate rights and interests of workers and staff members«(TUL 2001: Art. 6). 17.»In enterprises and institutions, the Chinese trade unions(…) pro­mote the development of enterprises and institutions(…) promote eco­nomic development and the long-term social stability and make contri­butions to the all-round construction of a comparatively well-off society and a harmonious socialist society(…) the Chinese trade unions safe­guard the socialist state power of the people’s democratic dictatorship« (ACFTU constitution 2008: General Principles). 18.»A labour dispute mediation committee may be established inside the employing unit. The committee shall be composed of representa­tives of the staff and workers, representatives of the employing unit, and representatives of the trade union. The chair of the committee shall be held by a representative of the trade union«(Labour Law 1994: Art. 80). 19. The right to strike included in the Constitution in 1978 was abolished in 1982. To that extent, China does not have a right to strike, but strikes are not prohibited, either. down strikes«. 20 If such occur, trade unions are obliged to intervene so that normal production can be restored as soon as possible. 21 This amounts to an implicit right to strike for workers and an explicit strike prohibition for trade unions. In any case, trade unions may not take the side of the striking workers. ACFTU is de facto a state authority and not an orga­nisation representing the interests of the workers. It is financed mainly from tax revenues  2 2 and trade union officials are treated as public employees in accordance with the dispositions of the Organisational Department of the CPC  23 and paid out of public coffers. By order of the Party it undertakes the tasks of a labour ministry, not those of a trade union in the Western sense. 4. From Strikes to Wage Negotiations: Is ACFTU Being Transformed into a Trade Union? Historically, trade unions are strike associations and even today there is much to suggest that they are able to exer­cise their strength only through conflict. This is also the case in China. The wage strikes in 2010, which without exception were conducted without the active involve­ment of the trade unions, plunged ACFTU into a major organisational crisis, its second since 1995. 24 When com­20. See TUL 2001, Art. 27. Some Chinese scholars consider the mere mention of»work stoppage« and»slowdown strikes« as indirect recog­nition of the right to strike. 21.»In case of work stoppage or slowdown strike in an enterprise or institution, the trade union shall, on behalf of the workers and staff members, hold consultation with the enterprise or institution or the parties concerned(…) The trade union shall assist the enterprise or in­stitution in properly dealing with the matter so as to help restore the normal order of production and other work as soon as possible«(TUL 2001: Art. 27). 22. Membership contributions are set at a nominal 0.5 per cent of gross wages, but they may make up less than 10 per cent of ACFTU’s revenue. The main funding comes from tax revenues(2 per cent of total wages at companies with a trade union). Trade unions also receive revenues from business activities – especially hotels – and receive government subsi­dies. In financial terms, little would change for ACFTU even if it had no members. 23. Organisational Department of the CPC:»Statement on the adminis­tration of organs of people’s and mass organisations like trade unions, CPC youth, women’s association etc. in accordance with the civil ser­vice law of the Republic of China«, promulgated 26.08.2006. See http:// www.yimendj.gov.cn/Article/ShowArticle.asp?ArticleID=4079. 24. ACFTU has undergone numerous organisational crises. Founded in 1925, its importance grew rapidly due to its strike activities, but this phase ended with the bloody suppression of the Shanghai workers’ uprising of 1927 by Chiang Kai-Shek and the withdrawal of the CPC into the countryside. In 1948, with the CPC’s seizure of power it was founded anew, only to fall victim to the Red Brigades of the Cultural Re­volution: from 1966 until its third establishment in 1978 it did not exist. In the meantime there were constant debates on ACFTU’s direction 6