Rare decision: Xiamen labour panel punishes foreign-run company in dispute over workers' strike
Legal experts say ruling is 'rare' as companies usually win the upper hand in such cases due to loopholes in the law
A labour dispute committee penalised a foreign-run electronics company for firing 34 workers after going on strike - in a rare move that challenges an arbitration system typically seen as favouring employers.
The workers had walked out of the plant in Xiamen, Fujian province, earlier this year to oppose plans to relocate the factory. Kewei Tongchuang, backed by Singapore investment and managed by Americans, had accused the 34 employees on strike of violating company regulations by not showing up to work.
The company issued an ultimatum, saying they should be back to work by February 28 or they would be fired. The striking workers returned to the factory floor on March 3, but were sacked the next day due to “violations to company policy”.
The workers challenged their termination before the Xiamen government’s labour arbitration committee.
Local governments bear huge pressure of maintaining stability. Many don’t want to convey the impression that strike is a way to solve [a] dispute
The panel ruled yesterday that the workers had reasonable cause not to show up to work and that their industrial action should not be seen simply as a company rule violation. On top of that, the committee ordered the firm to compensate the workers.
The labour committee’s decision was extraordinary as mainland labour dispute arbiters – under pressure from stability-obsessed local governments – typically decide on the basis of discouraging future strikes, according to legal experts.