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Thread: How do you interpret China’s New Labour Law?

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[quote=APAULT,265100]I have two responses... the direct one first.

Employers are always afraid of things that might reduce their profits, although the more enlightened ones  know if they invest in a happy and looked after workforce they will actually improve efficiency.  My bet is that Huawei was wanting to reduce staff numbers anyway and this is a way of claiming it wasn't their fault.  I don't know the company but I would guess they inherited a high staff load when they took over the business from the government.

Global inflation comes from several things, one of which is China's fast growth rate.  One of the issues is that China is actually has a shortage of skilled workers in some areas - and your comment that wages are forecast to rise by 10 to 15% supports this - and that in turn is why the government knows it needs to cool the economy a little.  So if some workers are released (I mean sacked) they will hopefully get jobs elsewhere.  Also if labour becomes more expensive, employers will increase capital investment instead...and actually increase efficiency.

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