Laws of the People's Republic of China

   Article 1. With a view to defining the status and functions of trade unions in enterprises in the special economic zones in Guangdong Province (hereinafter referred to as the special zones) and to bringing their roles into play in the construction of the special zones, these regulations are formulated in accordance with the Trade Union Law of the People's Republic of China (hereinafter referred to as Chinese Trade Union Law), the Regulations on Special Economic Zones in Guangdong Province and the relevant laws and regulations.

   Article 2. Trade unions in enterprises in the special zones mentioned in these regulations refer to trade union organizations set up, in accordance with the law, in solo ventures, joint ventures and co-operative ventures in the special zones (hereinafter referred to as special zone enterprises) operated independently by foreign citizens, overseas Chinese and Hong Kong, Macao and Taiwan compatriots or their companies and enterprises (hereinafter referred to as outside investors) or operated jointly by outside investors and Chinese enterprises.

   Article 3. A trade union in a special zone enterprise shall possess the status of a legal person, and president of the trade union shall be representative of the legal person.

   Article 4. Staff and workers of special zone enterprises, as part of the Chinese working class, may, in accordance with the Chinese Trade Union Law and the Articles of Association of the Chinese Trade Union, set up and join trade union organizations and carry on trade union activities.

   Article 5. Trade unions in special zone enterprises shall be directly under the leadership of the trade union organization of a higher level.

The Municipal Federations of Trade Unions of Shenzhen, Zhuhai and Shantou shall exercise unified leadership over trade unions in special zone enterprises in their respective special zones. The setting up of a trade union organization in a special zone enterprise shall be reported for approval to the federation of trade unions of the city where the enterprise locates.

   Article 6. Trade unions in special zone enterprises are representatives of the interests of the staff and workers. They shall protect pursuant to the law the legitimate rights and interests of the staff and workers, consult or negotiate on behalf of the staff and workers with the enterprises on matters of vital interests of the staff and workers, supervise according to the law the observance by the enterprises of the laws, regulations and rules of the state or the special zones in connection with labour protection, labour insurance, wage systems, environmental sanitation and safety in production, etc., and protect pursuant to the law the special rights and interests of the women staff and workers.

   Article 7. Trade unions in special zone enterprises shall according to the law give guidance and help to the staff and workers in signing their individual labour contracts with the enterprises, or sign on behalf of the staff and workers collective labour contracts with the enterprises, and supervise the execution of the labour contracts.

   Article 8. Trade unions in special zone enterprises shall support the production and management and administration of the enterprises, educate the staff and workers to adopt a correct attitude towards the legitimate rights and interests of outside investors, to observe labour discipline and various rules and regulations, to strictly abide by the labour contracts and to strive to fulfil various economic tasks.

   Article 9. Trade unions in the special zone enterprises shall organize for the staff and workers political, scientific and technical and literary studies, assist the enterprises in professional and technical training and carry on various healthy recreational and sports activities.

   Article 10. Trade unions in the special zone enterprises shall be concerned with the well-being of the staff and workers, help and supervise the enterprises in the rational use of welfare and bonus funds and in running the collective welfare projects well.

   Article 11. Trade unions in the special zone enterprises shall carry on various activities to promote their unity and friendship with Hong Kong, Macao and Taiwan staff and workers and overseas Chinese or foreign staff and workers of the enterprises, and cooperate with them in work.

   Article 12. Trade union representatives may pursuant to the law attend as non-voting members and report the opinions and demands of the staff and workers to meetings of the board of directors held to discuss important issues such as development plans, production and operational activities of the enterprise.

Board of directors of a special zone enterprise, at meetings to discuss and decide on awards and penalties to staff and workers, wage systems, welfare benefit, labour protection and labour insurance, etc., shall win cooperation of the trade union, and trade union representatives may pursuant to the law attend the meetings as non-voting members and give opinions of the trade union.

   Article 13. In solo ventures of outside investors, a labour-capital consultative meeting system shall be established, and trade union representatives and outside investors or their agents shall consult with each other at regular intervals on matters of rights and interests of the staff and workers, so as to coordinate relations between labour and capital and run the ventures well.

   Article 14. Special zone enterprises shall observe the legal regulations of the special zones on labour management and the stipulations of the labour contracts in dismissing or giving penalties to staff and workers, and promptly notify trade unions in the enterprises.

   Article 15. When there is need for special zone enterprises to increase working hours, the prerequisite is not to impair the health of the staff and workers, and the regulations of the special zones for labour and wage management shall be strictly implemented and over-time pay shall be given. In case the overtime work impairs the health of staff and workers, trade unions may raise their opinions to the enterprises and decide through consultation ways to solve the problems.

   Article 16. Trade unions in special zone enterprises shall in accordance with the Articles of Association of Chinese Trade Union set up committees of grass-roots trade unions and convene general membership meetings or trade union members' representative assemblies.

Members of grass-root trade union committees shall generally not withdraw from production, but in enterprises that have comparatively large numbers of staff and workers, the trade unions may pursuant to the Chinese Trade Union Law appoint full-time committee members not engaged in production. Wages of full-time trade union committee members shall be paid out of the trade union funds, and they enjoy various other treatments just as the staff and workers do and the enterprises shall bear such costs.

   Article 17. When committee members of a trade union in a special zone enterprise who are not released from production need to take up some time for trade union activities during production hours, the trade union shall notify the enterprise in advance and the enterprise shall support it. However, total time taken up by each committee member during production hours shall not exceed two work days in a month, and such time may be added up in a calendar year and used for participation in training or study classes or for attending meetings of the trade union and their wages and bonuses shall be fully paid by the enterprises.

   Article 18. When a special zone enterprise transfers a trade union committee member to another post or dismisses him, consent of the trade union organization of a higher level shall be obtained in advance.

When a full-time trade union committee member no longer holds his post in the trade union, the enterprise concerned shall according to his conditions arrange a proper job for him in time.

   Article 19. Activities organized by trade unions in special zone enterprises shall usually not take up production (working) hours. In the event of special circumstances that some time during production (working) hours is to be taken up, consent of the enterprise shall be requested beforehand.

   Article 20. Special zone enterprises shall give convenience and support to the work of the trade unions.

Special zone enterprises shall, in accordance with the stipulations of the Chinese Trade Union Law and the Regulations for the Implementation of the Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment, provide free of charge housing and facilities (including water and electricity, furniture, etc.) for the trade unions' office work, meetings and welfare, cultural and sports activities, and bear the relevant maintenance costs.

   Article 21. A special zone enterprise shall, in accordance with the stipulations of the Chinese Trade Union Law and the Regulations for the Implementation of the Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment, allocate each month an amount of money equal to two per cent of the total amount of salaries and wages of the enterprise's staff and workers as trade union's funds, which shall be itemized as administration expenses of the enterprise. Trade union funds shall be appropriated each month.

Members of trade unions in special zone enterprises shall pay membership fees each month in accordance with the rules formulated by All-China Federation of Trade Unions.

Trade unions in special zone enterprises shall, in accordance with the financial disciplines set forth by the state or the special zones and the rules formulated by All-China Federation of Trade Unions, work out managerial rules for the trade union funds, which shall be subject to guidance, check up and supervision by the trade unions of higher levels.

   Article 22. Labour disputes arising between trade unions in special zone enterprises and the enterprises may be settled through consultations by representatives of the disputing parties. In case no settlement is reached through consultations, either or both of the parties may apply to the labour management department under the people's government of the municipality where the enterprise is located for conciliation. If there is objection to conciliation, a suit may be brought in the people's court in accordance with the law.

   Article 23. All staff and workers from Hong Kong, Macao and Taiwan, overseas Chinese or foreign staff and workers, employed to work in special zone enterprises and having their wages as the main source of their income, may become members of the Chinese Trade Union if they agree with the Articles of Association of the Chinese Trade Union, voluntarily apply for membership of the trade union organization, pay membership fees according to the stipulations and take part in trade union activities.

   Article 24. Members of trade unions in special zone enterprises among staff and workers from Hong Kong, Macao and Taiwan, overseas Chinese or foreign staff and workers shall hand in their membership cards when they leave the special zones after the end of their work there. If they personally apply for issuance of certificates, the municipal federation of trade unions may issue certificates to them evidencing that they joined the Chinese Trade Union. For those who leave the special zones for more than six months running without special reasons and do not pay membership fees according to the stipulations, their status as members of the Chinese Trade Union shall vanish automatically.

   Article 25. These regulations shall come into force as of the day of promulgation.