Research on the work resumption in Sichuan and Chongqing: numbers of labour right protection policies are not implemented
Labour Action China, 24 August 2020
 
To study the influence of the COVID-19 pandemics (“the pandemics”) on the work resumption situation of migrant workers from Sichuan and Chongqing region, the partners of Labour Action China distributed 130 questionnaires (126 valid responses) from April to July 2020. Field research was also conducted to investigate specific circumstances.
 
The previous three researches on post-pandemics work resumption targeting workers from urban regions in Guangdong and Henan. The information related to the situation of workers from rural areas was relatively insufficient, especially that of the workers who returned hometown in rural areas during the Chinese New Year holiday. Also, the sample size of workers from Hunan, Hubei and Hunan provinces in the previous researches occupied less than 8% of the total sampling. It is not good enough to articulate the labour situations of these major labour-exporting regions in China. To fill the research gap, this research focuses on the workers with agricultural household registration.
 
The study is divided into four sections: 1. The situation of work resumption; 2. The labour rights situation; 3. The working conditions before and after the pandemics; 4. Government support to both employers and employees.
 
1. Methodology
 
In this research, around 60% of the survey responses were collected online and the rest 40% were from the field research.
 
The research team conducted field research from early May to mid-July 2020 in five regions in Sichuan Province (Qu County in Dazhou, Yingshan County in Nanchong, Hanyuan County in Ya’an, Muchuan County and Ebian County in Leshan) and one region in Chongqing (Tongliang district). The volunteers of LAC’s working partners worked as investigators in the six regions and they recruited interviewees through their personal social networks. As the sample size was small and the samples were not selected randomly, for better representation and understanding of the labour conditions in different places, the research team selected participants from different regions for the research. Also, to collect correct and reliable data, all the volunteers received social research and interview skills training.
 
The volunteers read the survey questions for all interviewees face-to-face and explain each question in a standardized way because some of our interviewees could not read or write. The volunteers completed the questionnaires for the interviewees after listening to their verbal answers. This action eliminated the discrepancy of understanding among the participants and gained richer and more vivid information.
 
The online questionnaires were distributed via WeChat to the service targets of LAC’s partners from early April to mid-July this year. In addition to the six regions where our field research was conducted, the online survey was also conducted in the following regions: Liangshan Yi Autonomous Prefecture (Ganluo County), Sichuan Province (Guang’an City, Kaijiang County and Dazhou District), and Chongqing City (Liangping District).
 
2. Participants’ information
 
The gender distribution is almost even in this survey, with a slightly higher proportion of males. 76.2% of the participants were young to middle-aged adults aged 26 – 55 years old and highly likely to be responsible financially for supporting their children and the elderly. 60.32% of the interviewees were workers and managers and clerks occupied 8.73% and 6.35% respectively. Most workers were working in the construction and manufacturing industries. The job position distribution shows that this report reflects the working conditions of the grassroots workers. 66.66% of the participants worked in Sichuan or Chongqing, and the rest worked in Guangdong. More than half of our participants worked for small or medium-sized enterprises (SMEs) with 10 to 200 employees (see table 1).
 
Table 1: Profile of the Respondents

Type

Option

Ratio

Gender

(109 valid responses)

Female

44.83%

Male

55.17%

Age

16-25

7.94%

26-35

22.22%

36-45

23.03%

46-55

30.95%

56 or above

15.87%

Household register

Sichuan

64.29%

Chongqing

35.71%

Place of work

Guangdong

33.33%

Sichuan

48.41%

Chongqing

18.25%

Industry

Metal hardware

9.52%

Furniture

15.03%

Household electrical appliance

10.32%

Plastic

12.70%

Construction

26.98%

Others

25.40%

Job position

Workers

60.32%

Management

8.73%

Clerical

6.35%

Others

24.60%

Number of employees

in the workplace

Less than 10

10.32%

10-50

25.40%

50-200

32.54%

200-1000

18.25%

Over 1000

13.49%

 
3. Data analysis
 
a) Delay of work resumption
 
a.i. 82.54% of the respondents faced delay of work resumption but only 39.08% received normal salary payment during the delayed period
 
From the data, 82.54% of the participants said that they faced delay of work resumption and 17.46% did not do so. Among the participants without delay of work resumption, only 6.35% of the enterprises enjoyed the full resumption with all workers (Table 2). From the field investigation, most workers who resumed work on time were those in the service sectors, like the cleaning and hotel industries.
 
This research does not apply a specific time reference in defining “delayed work resumption” because “delayed work resumption” varies in different industries and enterprises. On this question, the research team adopts the practices of the participants’ enterprises on the proposed day of work resumption before the Chinese New Year last year. For example, foreign-funded manufacture firms usually resume work 15 days after Chinese New Year. Therefore, until 17 February 2020, that the participants did not resume work because of lack of foreign orders was considered delay of work resumption.
 
Table 2:Did your company delay work resumption?

Option

Number

Ratio

Delayed

104

82.54%

Not delayed

All employees

8

6.35%

Partially

14

11.11%

 
The work resumption date was listed in Table 3 below. 28.44% of the respondents resumed work in March, 42.20%, in April, and 18.35%, in May. Until mid-July 13.50% of the participants indicated that they would not return to their workplace in a short time. It meant that about 60% of the participants had no income unless the employers would pay their salary or living expenses according to the regulation by the Ministry of Human Resources and Social Security.
 
The workers from other areas also suffered from community lock-down and traffic stoppage due to the pandemic. It also obstructed them from work resumption. The eleven regions covered in this study lifted travel ban from early March to late April 2020.
 
Table 3: Work resumption time

Option

Number

Ratio

February

12

11.01%

March

31

28.44%

April

46

42.20%

May

20

18.35%

109 valid responses for this question

 
Only 39.08% of the respondents were paid normal wages during the period of delayed work resumption, while as high as 35.63% had no payment (see Table 4). Both the delayed and non-payment of wages had violated the law.
 
According to the Ministry of Human Resources and Social Security, “if the employer stops work and production within one wage payment cycle, the employer shall pay the workers the same amount as stated in the labour contract. If the suspension of production exceeds one wage payment cycle, and the employee has worked normally, the employer shall pay the wages to the workers not lower than the local minimum wage. If the employee did not work, the employer should pay the employee the living allowances.” Generally, one wage payment cycle refers to one month.
 
Employers are obligated to pay employees the normal wages during the Chinese New Year holiday. The General Office of the State Council announces that “during the extended Chinese New Year holiday, employers should calculate and pay employees normal wages. It is not allowed to force employees to take the holiday extension period as paid annual leave.”
 
Table 4: Wages payment during the delayed work resumption period

Option

Number

Ratio

Normal payment

34

39.08%

Delayed payment

12

13.79%

Partial payment

8

9.20%

No payment

31

35.63%

Others

2

2.30%

 
69.72% of the participants worked in their enterprises (including construction sites) and 9.17% worked from home. Since most interviewees were construction or manufacturing workers, it was highly unlikely for the workers to work from them, a flexible way to resume to work.
 
Table 5: Work modes

Option

Number

Ratio

Work in companies

76

69.72%

Work from home

10

9.17%

Others

23

21.10%

Valid responses: 109

 
a.ii. 19.27% of the respondents were quarantined, but only 42.86% of them received normal wages during the quarantine
 
19.27% of the respondents received quarantine after work resumption. 19.05% of the quarantined workers received no payment, and 38.10% received partial payment (see table 6). The announcement by Ministry of Human Resources and Social Security states, “when employees cannot normally work because of the governmental quarantine or other emergency actions, employers shall pay employees during the period under actions”. But the research revealed the poor implementation of the labour protection although it has been guaranteed by government policies.
 
Table 6: Wage payment during the quarantine period

Option

Number

Ratio

No payment

4

19.05%

Partial payment

8

38.10%

Normal payment

9

42.86%

 
b) Labour rights conditions
 
In this study, the collected data related to the labour rights was mainly limited to social insurance and pandemic-related occupational health and protection issues.
 
b.i. 32.54% of the participants did not enjoy social insurance protection.
 
Only 67.46% of the respondents’ employers followed the instructions in the Labor Contract Law to have social insurance for their employees and 32.54 of the respondents could not enjoy the social insurance.
 
b.ii. Around 90% of the respondents received free protective goods.
 
89.91% of the respondents’ employers provided workers free protective goods; mainly mask, but 10.09% of the participants still did not receive any free anti-epidemic items .
 
c) The labour conditions before and after the pandemic outbreak
 
This section compares the labour conditions pre- and post-pandemic by wage level, workload, number of employees and labour relation.
 
c.i. Wage level: 58.72% of the participants faced wage cut, and 33.33% of the employers did not negotiate with their employees about the wage change
 
Nearly 60% of our participants said that their income was cut after the pandemic outbreak and 33.94% of the respondents’ income remained unchanged (see table 7).
 
Table 7: wage level after the work resumption

Option

Number

Ratio

No change

37

33.94%

Increased

8

7.34%

Decreased

64

58.72%

109 valid responses to this question

 
It is noticeable that a significant number of our respondents were in a disadvantaged position on their wage change. Only 66.67 of the employers negotiated with their employees on the wage change but 33.33% did not do so. According to the Labor Contract Law, when employers set, change or decide the wages, they “shall discuss the issue with labour representatives or all workers, make proposals and suggestion, and conclude the agreement with the trade unions or labour representatives in an equal conciliation”. Moreover, “when the trade union or employees regard the wage change as inappropriate, they have the right to raise the issue to the enterprises and revise the proposal in conciliation with their employers”.
 
c.ii. Workload: 11.01% of the respondents’ workload increased 
 
The workload of most participants  (88.99%) had not increased after the pandemic outbreak, but 11.01% still suffered from increase in workload during the pandemic. Workload went up in two industries typically, 1) the pandemic-related industries, like healthcare and anti-pandemic supplies production, such as masks, alcohol and mask production machines, and 2) the cleaning industry.
 
c.iii. The scale of business: 77.98% of the respondents indicated a change in the number of employees in their workplaces mainly because of layoffs or alternative work.
 
77.98% of respondents reported a change in the number of employees in their companies, and the remaining 22.02% reported no change.  Most companies changed their business scale due to layoffs or alternative work, 41.18% and 36.47% respectively (see table 8).
 
Table 8: reasons for the change in number of employees

Option

Number

Ratio

Layoffs

35

41.18%

Alternative work

31

36.47%

Partially delayed resumption

15

17.65%

Others

4

4.71%

 
c.iv. The employment relations: 71.56% of the respondents were fired, mainly because of economic redundancy
 
71.56% of the respondents indicated that their employers terminated employment relationship with them after work resumption and 28.44% maintained their jobs . The layoffs mainly resulted from economic di9fficutlies: 83.33% were economic redundancy, and 10.26%, bankruptcy (see table 9). Under the economic recession and increasing financial loss and bankruptcy, it is a serious problem that the lay-off workers could become long-term unemployed.
 
Table 9: Reasons for the layoffs

Option

Number

Ratio

Economic redundancy

65

83.33%

End of contract

3

3.85%

Bankruptcy

8

10.26%

Quarantine

0

0.00%

Others

2

2.56%

 
d) Support from the government 
 
The governmental support is crucial under the economic recession. 70.63% of our participants said that their employers had received support from the government and 29.37% of them did not enjoy so. This study found that the main support measures were exemptions and subsidy, such as reducing tax, exempting or delaying social insurance payments and offering employment subsidies. Although majority of the companies of our respondents received supports from the government, the answers to the previous question reflected that many companies still suffered from redundancies. It was questionable if the government supporting policies were sufficient and effective.
 
It is noticeable that most respondents said they had known nothing about the supporting policies to workers. It reflected that the supporting policies in the local level mainly targeted enterprises. The research team found that there were no support measures to workers except free bus travel inside the city for workers to work. The local governmental support helped release the traffic burden of workers, but not their economic difficulties due to the delayed work resumption or loss of job. Financial difficulties were more pressing to workers.
 
4. Discussion 
 
As compared with the previous researches, a higher proportion of the participants in this study suffered from delayed work resumption, wage cut and loss of job. As this survey was completed in mid-July this year, it reflects a more updated labour conditions that the workers in rural areas are facing larger difficulties than those workers in urban areas.
 
In addition, this survey mainly concentrates on the labour conditions of workers but does not touch the problems derived from the change in labour conditions. For example, the research team, in its on-site visits, found that more than ten respondents’ young children had already stopped their studies and started working to support their families. It was because their households had no income during the pandemic period. Drop-out of schooling is highly likely to constrain their social mobility. All this issues, like children's education, should draw more public attention and require further in-depth studies of individuals’ difficulties.
 
A missing gap of this study is lack of gender analysis. Comparing to male workers, would female workers suffer more in illegal layoffs, wage cut and re-employment? Also, would more women be forced to quit their jobs due to increase in family care work during the pandemics, such as taking more time for care of children due to online teaching? We need further studies to examine the issues. 
 
In terms of institutional protection, both the Chinese Labour Law and the related labour policies due to the pandemics provide clear, comprehensive and adequate regulations and protection of labour rights. They are supposed to protect workers’ rights and interests. However, this study reveals a significant number of firms' unlawful activities, such as illegal dismissal, wage cut, delayed wage payment and non-payment. The key problems are loose law enforcement and labour monitoring. It is expected that labour disputes soar rapidly after the pandemics. It is questionable to the fact if the labour administration and the judicial system can protect workers well.
 
During the pandemics, LAC’s working partners notice that, for enhancing the local economic development, the local governments have taken more favourable positions to enterprises' interests than workers' interests. The practices include selective law enforcement, loose labour monitoring and favourable judiciary rulings to enterprises. Close watch should be paid to the fact if the labour monitoring, law enforcement and the judiciary decision of the local governments are biased to enterprises. 
 
 
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