Article 8 The annual wage levels of employees shall be negotiated and determined in line with the national macro-control policies on wage distribution. In addition, the following factors shall be comprehensively considered:
(1)The labor cost level in regions, industries and enterprises;
(2)The average wage level of employee in regions and industries;
(3)The guide-line for wages and the wage guiding price of labor market as issued by the local government;
(4)The consumer price index of the local residents in towns and cities;
(5)Labor productivity and economic effectiveness of enterprises;
(6)Preserving and increasing the value of state-owned assets;
(7)Previous year’s total pay-roll and the average wage of employees of the enterprise; and
(8)0ther matters concerning the collective wage negotiations.
Chapter 3 The Representatives of Collective Wage Negotiation
Article 9 The representatives of collective wage negotiation shall be determined according to legal procedures. The trade union shall be the representative of the employees. Where the enterprise does not establish a trade union, the representative of employees shall be elected by employees democratically and approved by more than 1/2 of the employees. The representative of enterprise shall be the legal representative or other persons authorized by the legal representative.
Article 10 Each party of the negotiation shall appoint a chief representative respectively. The chief representative of employees shall be the chairman of the trade union, who may entrust another person as his/her attorney in writing; if the trade union is not established, the chief representative shall be elected by the representatives of employees. The chief representative of the enterprise shall be the legal representative, who may entrust another person as his/her attorney in writing.
Article 11 The chief representatives of the parties of negotiation shall take turns to take the position of executive chairman for the negotiation meetings during the period of collective wage negotiation. The main duties of the executive chairman of negotiation meetings shall be responsible for the organization and coordination of collective wage negotiation and put forward the proposal for the settlement of problems occurred during the negotiation.
Article 12 The Parties of negotiation can entrust in writing the professionals outside the enterprise as their negotiation representatives. The entrusted persons of any party must not be more than 1/3 of its total representatives.
Article 13 The parties of the negotiation have equal rights of suggestion, veto and statement.
Article 14 The participation in the collective negotiation activities by the negotiation representatives from the enterprise shall be deemed as normal work and the representatives’ wage, bonus, allowance, subsidy and insurance benefits must not be changed. The legitimate interests of the negotiation representatives of employees are protected by laws. No enterprise may conduct discriminatory acts against the negotiation representatives of employees, illegally rescind or modify their labor contracts.
Article 15 The negotiation representatives shall comply with the negotiation principles determined by the parties, perform the duties of representatives and undertake the obligations to keep the commercial secrets for the enterprise. No negotiation representatives of the parties shall conduct actions such as going to extremes, threatening, buying over or cheating.
Article 16 Negotiation representative shall look into and learn relevant situations on the wage distribution, broadly solicit the opinions of various parties and accept the inquiry on relevant issues concerning collective wage negotiation from the members of his/her Party.
Chapter 4 The Procedures of Collective Wage Negotiation
Article 17 Either party, the employees or the enterprise, may put forward the request to carry out the collective wage negotiations. The party that put for ward the collective wage negotiation shall provide the other party with Intention of Negotiation in writing, defining the time, place and content of the negotiation. After receiving the Intention of Negotiation, the other party shall give a written reply within 20 days and jointly carry out the collective wage negotiation with the party putting forward the negotiation.