The Ministry of Labor, the All-China Federation of Trade Unions, the State Commission of Economy and Trade, and the China Entrepreneurs Association. Circular Concerning the Gradual Implementation of the System of Collective Consultation and Collective Contracts (May 17, 1996)

Abstract

Along with the enforcement of the Labor Law, pilot projects for imposing collective consultation and collective contract systems have been carried out actively and smoothly in most regions. This is producing a positive effect on promoting the establishment and improvement of a mechanism for coordinating labor relations, upholding the legal rights and interests of both employees and enterprises, and developing harmonious and stable labor relations under the socialist market economy. To unify our perceptions further, strengthen guidance, and gradually set up a system of collective consultation and collective contracts, the following circular is issued on relevant issues: 1. The Labor Law and the Trade Union Law constitute the legal grounds for implementing the system of collective consultation and collective contracts. At the same time that the labor contract system is imposed in an all-around manner, a labor relations coordinating system should gradually take shape, based on the principles of making active but sound efforts, ensuring quality, and emphasizing practical results. Under this system, trade unions represent employees in conducting equal consultation with enterprises, and the government imposes regulations and controls according to law.