Do Not Overlook the Trade Union in China

Recently, one piece of important news is overlooked by the western media. That is the visit to China of a delegation of leaders from a major US trade union, Change to Win. The relevant news can be found in many Chinese media, but not in western media.

The delegation was led by the president of Change to Win, Anna Burger at the invitation of All China Federation of Trade Unions and participated with some famous leaders of US trade unions such as James Hoffa, the son of famous Jimmy Hoffa. For a long period, the biggest trade union in the US, AFL-CIO does not commit the position of All China Federation of Trade Unions as a real trade union due to its affiliated position under the leadership of the China Communist Party. The visit of Change to Win, the second largest trade union in the US, was believed to create a new chapter of the relationship between the trade unions in China and the US.

The common ground between the trade unions probably lies in the concentrated force to help improving workers’ working and living standards. The news that All China Federation of Trade Unions organized the labor unions for some branches of Wal-mart Stores Inc. is one important catalyst for this visit. It seems to display the endeavor and strength of All China Federation of Trade Unions in helping the workers. However, there are underlying reasons.

Change to Win was founded in 2005 by 7 member unions which gave up the affiliated membership of AFL-CIO. They are International Brotherhood of Teamsters, Laborers' International Union of North America, Service Employees International Union, UNITE HERE, United Brotherhood of Carpenters and Joiners of America, United Farm Workers of America, and United Food and Commercial Workers International Union. To some extent, large proportion of their 6 million members is influenced by the globalization. As James Hoffa said, the establishment of trade unions in the foreign invested companies in China might help to adjust the balance of the competitiveness between Chinese labors and US workers. The stronger the trade union is, the higher wages they can probably negotiate with the employer.

The communication between All China Federation of Trade Unions and the western trade unions also has benefit to the side of China. All China Federation of Trade Unions is bound to find some ways to strengthen its power in the course of China’s development. Chinese government is making every effort to protect the benefit of its farmers. They believe that it is a good way to stabilize China’s economy. It is also true that a stronger trade union will help to stabilize China’s economy through providing better salaries for workers. The rationale behind it is that the higher income the workers (also the peasants) can get, the more likely they are going to consume. This will be the very solution China tries to find to the trade conflict between China and the US. If the internal supply can be promoted, the pressure for exports to support China’s economic growth will become less. This will finally reduce the business friction problem of China.