~December 2000~

Impacts of Globalization in Contemporary China from Occupational Safety and Health Perspective

Introduction In 1997, financial crisis took place in Asia. The terrible crisis directly caused economic recession among most Southeast Asian countries, namely Korea, Hong Kong, Taiwan, the Philippines, Thailand, Malaysia, Indonesia and so on. With close economic linkage between the east and the west, negative atmosphere spreads all over the world, and it is believed that the whole world was adversely affected. China, as one of the major developing countries in Southeast Asia, could not escape from the financial shock. However, unlike other countries with negative gross domestic productivity (GDP hereafter) growth rate, the Chinese government was proud of announcing her positive GDP growth rate in 1997. The prime minister Mr. Zhu Rong-ji () even promised to maintain an average of +7.5% GDP growth rate in the coming years. Actually, the rapid economic growth was largely contributed to the introduction of economic reform and the implementation of the open policy of contemporary China in the recent decades.

However, the economic miracle is not cost-free. According to the statistics and figures released by the Chinese government, reported numbers of occupational disease victims are 13256 in 1996, 10228 in 1997, and 10637 in 1998 respectively (1) . Besides, the Statistics Bureau indicates that there are thousands of people died in different kinds of occupational accidents each year. Among all, the most risky industry is mining activity. The occupational death rate of the industry is around 1.6 thousand per year, which is 200 times comparing with the U.S. figure (2). Evidences show that over 80% of the accidents happened in value-added factories and private-owned enterprises, and most victims are migrant workers (3). In fact, the real situation is even worse since both official and non-official organizations admit that a large number of ?
small?
 and fragmented accidents are not officially reported. These figures and statistics present a clear picture that the problem of occupational accidents in contemporary China is very critical. In other words, this can reflect that promotion and enforcement of occupational safety and health (OSH hereafter) is weak and poor. Overall speaking, the success of economic performance of China in recent decades is at the expense of life and blood of huge grassroots?
 workers.

Globalization & Occupational Accidents

On 15th November 1999, a mutually beneficial trade agreement was signed between China and the United States. This means that one of the biggest trade barriers blocking China joining the World Trade Organization (WTO hereafter) is eliminated. With more and more trade agreements successfully made between China and other WTO members, the Chinese government believes that China is capable of participating in the WTO not later than the year of 2001. In fact, this is the milestone of globalization as international trade activities will undoubtedly be facilitated. According to the WTO rules and regulations, free and fair international trade is promoted. In order to achieve the ultimate goal, it is the responsibility of all member countries to eliminate any trade barriers such as high import tax rate, quota system etc.

Impacts of globalization on OSH conditions in contemporary China have been a controversial topic. On the one hand, some people argue that globalization will intensify the problem of occupational accidents in China. By promoting free trade, international capital flow is made easier. Transnational corporations can invest in a place with the lowest production costs, which in turn maximize their profits. In short, globalization brings along keen competition, which may finally result in undesired influences.

In the mainland, in order to bid for international contracts and compete with other developing countries, most value-added factories and private-owned enterprises try to lower their production costs. It is usually done by seriously exploiting the workers. For instance, it is very common that workers are forced to work overtime without any overtime payments (4). Worse still, the working environment is usually terrible, as there are inadequate, or even no occupational protections. From the point of view of some enterprises, the cost of promoting OSH in workplace is very expensive, and it is higher than kicking out workers who get injured. This explains why there are more than 50,000 workers?
 fingers/hands lost every year in the mainland (5). Under such a vicious cycle of competition, globalization causes aggravation of the problem of occupational accidents not only in China, but also in other competing countries.

On the other hand, other people believe that globalization can help to improve and mature the OSH conditions in China. Joining the WTO and becoming more active in the international stage, China is assumed to have obligations to follow international laws and regulations. With poor occupational accident records, the Chinese government is highly pressurized. Although she claims that it is unreasonable to add social clauses such as harmonization of occupational safety and health, and environmental protection standards suggested by most western developed countries, the Chinese government must show her efforts on improving OSH conditions. It may be either for releasing external great pressures, or simply for establishing good international image. The ratification of the International Covenant on Economic, Social and Cultural Rights, ensuring safe and healthy working conditions, is a good example to explain this. Sure, sincere improvement of OSH conditions greatly depends on the attitude of the Chinese government. If she only puts these international obligations on paper, but not transforms them into actions, then nothing is worth mentioned!

Up to now, it is difficult to conclude that whether globalization would cause positive or negative influences on China?
s OSH conditions in the long run. Nevertheless, in the short period of time, globalization causing vicious competition, and eventually resulting in amplifying the problem of occupational accidents is clearly identified in contemporary China.

Reasons of Poor OSH Records

Local Governments in Provincial and District Levels

Some local governments in the provincial and city levels are blamed as they do not take up their important role in enforcing the national Labor Law, and ensuring safe and healthy production within their districts. To encourage and attract foreign investments, they will provide as many as investment benefits and ?
conveniences?
 for investors so as to help them to minimize their production costs. Sometimes, these benefits and ?
conveniences?
 may be opposed to the interests of the workers. For instance, in case of workers being illegally exploited, some local governments tend not to obey the Labor Law, in order to minimize negative impacts caused by these incidents. They are afraid that the foreign investors would withdraw their capital from the districts. Also, affected by localism (6), both visible and non-visible hands are used to suppress negative news about their districts. It is common that serious occupational accidents are not truly reported, or even not reported to the central government and the general public. In short, the interests and human rights of workers will never be the first consideration of these irresponsible governments.

TNCs and Local Enterprises

The common interest of both TNCs and local enterprises is profit maximization. For TNCs, their production contracts will only be ?
awarded?
 to those with the lowest production costs. Also, through the sub-contracting system, all of their responsibilities concerning production are shifted. Therefore, they believe that to ensure safe and healthy production is definitely not their business. To the large number of local enterprises, they are mostly concerned with efficient and effective production. Nevertheless, their awareness of promoting and enforcing safe and healthy production is very weak. Some may even tend to ignore this because ensuring a safe and healthy workplace implies increase in production costs. Maximizing profits but neglecting all other things by TNCs and local enterprises is one of the main causes of the huge number of occupational accidents taken place in China.

Labour Unions

Basically, the function of labour unions in promoting and ensuring OSH is critically vital as they are assumed to stand for the interests of workers. However, referring to the present the Chinese Labour Law and the Labour Union Law, all labour unions are only authorized with limited power. Instead of granting sufficient legislative power in monitoring the implementation of various OSH practices in workplace by enterprises, labour unions are only able to give suggestions for enterprises owners to improve their working environment and conditions. Moreover, up to the year of 2000, there are no independent labour unions in China, and most committee members of the existing labour unions are not elected by workers. Their representativeness should be challenged since they tend to represent the interests of the government rather than those of workers. Put it simple, the interests and rights of workers cannot be safeguarded by the existing labour unions.

Workers

According to the Chinese government, most workers in value-added factories and private-owned enterprises are migrant workers. Due to their low education level and the existing discriminative laws against them, these migrant workers are put into a disadvantaged position. Their bargaining power in negotiating table is obviously limited. This results in serious labour exploitation, and some workers are even forced to work in dangerous workplace, for example, factories with closed fire exits. Poor awareness on OSH matters, lack of means to access relevant OSH information, and imbalance power distribution between employer-employee relationship victimize them in occupational accidents.

Suggestions for Improvements

Strict Enforcement of National Labor Law

Suggestions are mainly focused on legal issues and the possibility of facilitating labour movement. Firstly, as the numerous and serious occupational accidents are usually stemming from disobedience and violation of the existing Labour Law, it is a must to strengthen the enforcement and monitoring system of the law. One of the possible ways to achieve this goal is to perfect the law: state clearly and concretely about punishments in case of violation and disobedience. Similarly, in case of occupational accidents, person in charge of the enterprise, as well as government officials who are dereliction of duties must not escape from the legal punishments.

Introduction of OSH Law

Secondly, the Chinese OSH Law should be introduced and implemented as soon as possible. This supplementary but detailed law can be used to refill the inadequacy of the existing national Labor Law in the area of OSH. Introduction and implementation of the OSH Law is meaningful as it sends a clear message to the society that no one should ignore the importance of OSH practices. In this sense, different kinds of OSH practices can be ensured.

Establishment of Independent Labor Unions

In addition, to grant sufficient legal power to various labour unions and allow the establishment of independent labour unions is critically important. Under this circumstance, these labour unions are on behalf of workers, and they are powerful enough to protect the interests and basic human rights of workers. Through the clear performance of monitoring and coordinating functions of independent labour unions, the poor occupational accidents record can be much improved. Conclusion Still, there are many possible means to improve OSH condition in contemporary China. However, writer truly believes that to perfect the existing Labour Law, to introduce new OSH Law, and to allow the formulation of independent labour unions are the most significant ways to ensure workers not being harmed by occupational accidents.

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*1. The Chinese press titled Legal Daily (法制日報) on 6/4/2000, article " The critical conditions of safety production in China". (我國安全生產形勢嚴峻)

*2.The Chinese magazine titled Workers (中國工人)Vol: 88, article "The critical conditions of occupational safety and health practices in China". (我國勞動安全衛生形勢嚴峻)

*3.The Chinese magazine titled LAODONG BAOHU 2000.8（勞動保護）, article "the announcement of general situation of national safe production in a visual telecommunication conference". (在全國安全生產電視電話會議上的情況通報)

*4.The Chinese press titled New Press (新快報) on 15/11/2000, article "female worker works overtime 847 hours within 4 months". (打工妹4月加班847小時)

*5.The Hong Kong press titled Oriental Daily (東方日報) on 5/9/2000, article "fingers losing factories eating 50000 fingers every year". (斷指工廠年毀五萬指頭)

*6.Under this paper's context, localism means the interest of local government is to attract as much as possible number of investors. This can be done by establishing a positive image for investment, providing benefits or 'conveniences' for investors etc.