The Regulation has established a collective consultation mechanism for labor relations, fully reflecting the principle of equal consultation and taking into account the legitimate rights and interests of both parties. Article 20 and Article 47 of the Regulation stipulate that either party involved in equal consultation may propose an equal consultation offer to the other party in written form, and the other party must not refuse or delay. If there is refusal, the trade union has the right to request rectification within a specified period. For those who refuse to correct, the trade union can report to the labor administration department for a warning and be listed in the employer's labor security compliance and integrity archive.
In a report by our staff reporter Zhi-Kai Lai: "48 votes in favor, 1 abstention." On November 27th, the *Hainan Province Collective Contract Regulation* (hereinafter referred to as the Regulation) was passed with a high number of votes at the 12th meeting of the Standing Committee of the Fourth Hainan Provincial People's Congress and will come into effect from January 1, 2010. From now on, all types of enterprises and non-enterprise private entities (collectively referred to as employers) across the province will have legal guidelines for collectively concluding, terminating, or ending contracts with their employees. The Regulation stipulates that employers and employees should establish a normal wage growth mechanism through equal consultation. This means that in the future, how much salary and benefits employees receive can be equally negotiated with the employer.
It is understood that some employers in Hainan Province still have issues such as irregularities in collective contracts, and cases triggered by disputes over remuneration, labor standards, and labor conditions are increasing. These problems urgently need to be resolved through legislation. Considering the need to protect the legitimate rights and interests of workers while also promoting a "win-win" situation between employers and employees, Article 4 of the Regulation clearly states: "Establishing and fulfilling collective contracts should follow the principles of legality, equality, honesty, trustworthiness, and balancing the legitimate rights and interests of both parties."
"The advantage of the wage collective consultation mechanism lies in its being a two-way mechanism. When the economy is booming and the company's performance is good, wages can be increased through negotiation for employees; when the economy is sluggish and the company's performance is poor, consensus can be reached through negotiation between labor and capital, allowing necessary salary reductions to help get through difficult times and protect the interests of both employees and companies. This is more important than simply demanding wage increases," said a relevant person in charge of the Democratic Management Department of the Hainan Provincial Federation of Trade Unions.
Wage income is the core content of employees' economic interests and one of the issues they are most concerned about. Article 24 of the Regulation stipulates that employers and employees should establish a normal wage growth mechanism through equal consultation, ensuring that the average level of employee wages increases as the company's performance improves.
According to reports, since October last year, the progress of the wage collective consultation mechanism in Hainan has been smooth, but coverage still needs to be expanded. By the end of October this year, 930 enterprise administrative representatives and enterprise trade union representatives in Hainan Province had jointly signed the "Enterprise Wage Special Collective Contract," covering 1,860 legal entities, achieving a win-win situation of stabilizing employee and migrant worker positions and promoting steady enterprise development.
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