Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - China (Ratification: 1930)

The Committee notes the information provided in the Government’s report, in particular the adoption of the revised Regulations concerning minimum wages, which came into force on 1 March 2004.

Article 3 of the Convention. The Committee notes that under section 5 of the revised Regulations concerning minimum wages, the minimum wage rates may be either monthly, which are applicable to full-time workers, or hourly, which are applicable to part-time workers. The Committee also notes that, under section 6 of the Regulations, in fixing or adjusting minimum wage rates due consideration should be given, among other factors, to the cost of living, the consumer price index of urban residents, the level of social security contributions, the average wage, the level of economic development and the status of employment. As regards the requirement for full consultations with employers’ and workers’ organizations prior to determining minimum wages, the Committee notes the Government’s reference to the Guiding Principles for the Establishment and Perfection of the Mechanism of Tripartite Consultation on Labour Relations, which were issued by the Ministry of Labour and Social Security on 13 August 2002. Since neither the revised Regulations of 2004 nor the Guiding Principles of 2002 are available in the Office, the Committee would appreciate receiving a copy of these two texts. In addition, while noting the Government’s indication that the equal participation of employers’ and workers’ representatives is a general practice, the Committee requests the Government to take appropriate steps to ensure that the national legislation is aligned with established practice.

Article 4. The Committee notes that under section 26 of the Regulations on labour and social security inspection, which came into effect on 1 December 2004, in case of sub-minimum payment of wages, the Labour and Social Security Bureau may order the enterprise concerned to pay the workers an extra compensation at the rate of between 50 and 100 per cent of the amount due. It also notes that section 13 of the revised Regulations provides that if the employer fails to pay the workers at the legal minimum wage rate, the Labour and Social Security Bureau may impose a monetary fine of up to five times the wages due. The Committee requests the Government to transmit a copy of the Regulations on labour and social security inspection of 2004.

As regards the means to inform the employers and the workers concerned of the minimum wage rates in force, the Committee notes the Government’s explanations on its various efforts to diffuse the revised Regulations of 2004 and to publicize the minimum rates as widely as possible.

Article 5 and Part V of the report form. The Committee notes the information provided by the Government that, as of the end of 2005, the number of workers covered by the minimum wage system in all occupations was 70.6 million, and that all 31 provinces, autonomous regions and municipalities, including Tibet, issue local monthly minimum wage rates, while 23 of them issue hourly rates. It also notes that the highest monthly minimum wage is in the Municipality of Shenzhen (810 yuan, or approximately US$102) while the lowest is in Jiangxi Province (270 yuan, or approximately US$34). As regards inspection results, the Committee notes the figures given in the Yearbook of Statistics in China, 2004, according to which the Labour and Social Security Bureau settled 263,567 cases, 7,463 of which concerned the payment of minimum wages. It also notes that, in 2005, the labour inspection services, totalling some 20,000 full-time and 26,000 part-time inspectors, visited 1,185,000 enterprises and handled approximately 13,000 cases regarding violations of the minimum wage regulations, which permitted the recovery of 5.81 billion yuan (approximately US$733 million) of unpaid wages. The Committee would be grateful if the Government would continue to provide up to date information on the practical application of the Convention.

Finally, the Committee notes the comments made by the All-China Federation of Trade Unions (ACFTU). It notes, in particular, its promotional activities for the implementation of the revised Regulations concerning minimum wages, its active involvement in the enforcement of the minimum wage legislation and its research work serving for the adjustment of local minimum wages. The Committee would appreciate receiving a copy of the ACFTU’s “Manual on Safeguarding of Labour Remuneration Rights”.