Will be January 1, 2008 the formal implementation of the new "Labor Contract Law" has not yet entered into force, its resulting impact on the business and are already ahead of shock, "fermentation." The well-known high-tech private enterprise Huawei recent initiatives to large-scale layoffs, once again raises a number of enterprises to circumvent the new "Labor Contract Law" of the constraints imposed in advance "lose out" concerns.
According to relevant reports, including Huawei, Ren Zhengfei, including CEOs of all employees at least eight years Huawei, New Year's Day in 2008 resign before the procedure to be handled, and then signed with 1 to 3 years of the contract. The conservative estimate, according to media, staff involved should be "thousands to a million people." This first "resign" and then "competition" approach, not only within the Huawei has caused a tremendous shock, but also for other like-minded businesses to play a "demonstration" role. In fact, Huawei's large-scale reduction of the practice of older employees is not unique to this one, even early in the new "Labor Contract Law" before the adoption of many foreign and private enterprises brainer, such as the end of June this year, LG's China has a large number of 5 10-year dismissal, Global Sources has been in the similar operations in late August. Huawei is now once again blowing in the internal "kill mature" style, its purpose is to remove under the new labor law should bear the economic and legal liability, reduce the compensation for dismissal of employees. Because under the new law: meet the requirements of continuous work for 10 years or continuous set of secondary conditions, such as a fixed term labor contract, the employer should be signed with the workers without a fixed term labor contract.
There is no doubt that this incident the first to suffer are those for the enterprise made great contributions to the development of the old staff. Objectively speaking, the human resources, Huawei is a relatively large adjustment, careful arrangements, the old staff compensation also reasonable, at least shows a giant Huawei as the share of basic duties. But the worry is that, many private enterprises and foreign companies rush to implement the new labor law before the act of mass layoffs, not to protect the legitimate rights and interests of employees first, do not consider the social stability and unity . This phenomenon inevitably spread to a number of state-owned enterprises or institutions, many business leaders are more or less reveal the "New Year's Day before the dismissal of older employees, reduce the unit burden" idea, and the resulting variety of complaints have shown a rising trend.
In fact, business is not the ultimate winner of this game. Some companies mistakenly believe that, as soon as possible dismissal of older employees, on the one hand to avoid the need for next year's new labor law, on the other hand to re-stimulate the vitality of enterprises, improve the enterprise's innovation. In fact, this is totally a misconception. According to human capital theory, development of an enterprise depends on the internal human capital stock, the employees length of service longer because with more practice and experience, employees are often more than the new human capital. This is the most typical of the lifetime employment system in Japan. The results show that lifetime employment system is the enterprise labor relations balance both career staff provide solid assurance to make employees feel at ease their jobs; is that the enterprises an effective means of raising labor productivity. Because of the job guarantee, the staff more willing to devote their energies to learning with the business or their job-related knowledge, and constantly improve their professional level, so as to enhance business productivity. Many experts even assert that it is this long-term employment system to ensure Japan's economic take-off and corporate growth.
In essence, long-term or non-fixed term labor contract is the construction of harmonious labor relations as an important foundation. It is also based on this consideration, the new labor law tried to play through the internal structure of these terms of long-term or non-fixed term labor contract employment system, to guide employers and employees signed a long-term labor contract or labor contract without a fixed term, to promote the long-term or no fixed-term labor contracts in China to promote and popularize. Long-term development of employers, no fixed term labor contract, if used properly, can also give the employer brings to attract talent, retain talent, motivate employees, enhance team cohesion and other effects.
Although the legal point of view, the behavior of Huawei impeccable. However, the externalities generated by the event of view, the obvious negative effect of the majority. Because an enterprise is not just to pursue their own interests to maximize the economic actors, too, should be the carrier of social responsibility initiative. Any lack of corporate social responsibility, not only difficult to gather the centripetal force within the enterprise, increase employee loyalty, the external reputation of the enterprise will be adversely affected. And these are precisely the compensation money is difficult.
Therefore, when the company standing obligations and responsibilities under the law before, should not be first thought was how to avoid and neglect, but should take the initiative to undertake and perform, this is a modern enterprise to build a harmonious society and a harmonious labor relationship qualified respondents. (The author is a postdoctoral Institute of Chinese Academy of Social Economy)
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