Nantong Yawei Machinery Trade Union Plays Three Key Cards in Collective Wage Negotiation

Nantong Yawei Machinery Manufacturing Co., Ltd. is a leading enterprise in Baidian Town, Hai'an County. As the company's economic performance continues to grow, employees have developed new expectations regarding wages. Failure to address these expectations in a timely manner could have serious consequences for the enterprise. To this end, the trade union has proposed that the company actively carry out wage consultations and establish a basic wage system centered on a reasonable piece-rate pay structure, complemented by a distribution incentive mechanism that rewards actual performance and contributions. By playing the "three key cards," the union ensures that the negotiation process proceeds in an orderly and regular manner.

I. Employee Representatives

The basic requirements for employee representatives are: high ideological awareness and strong capabilities in democratic management, and the courage to speak up and act on behalf of employees. At the same time, a balanced composition in terms of age, gender, and job categories is ensured. The representatives include grassroots trade union cadres, ordinary workers, and female representatives. The trade union has organized three rounds of democratic recommendation for negotiation representatives. The current representatives—16 in total—were recommended following changes in the corporate system and mechanism in early 2016. For each negotiation session, the union chairperson is designated as the chief employee representative, while other representatives are selected from a "negotiation representative pool" and publicly announced after due process.

The union places great emphasis on representative training, adhering to the principle of "cultivating competent talents." Specialists and negotiators in collective wage bargaining at the county and municipal levels are invited to provide systematic training for employee representatives, enabling them to further master relevant laws and regulations and improve their competencies. To "grasp the situation accurately," representatives frequently visit workshops and work teams to solicit employees' aspirations and concerns regarding wage negotiations, and collect and organize feedback in a timely manner. The trade union diligently analyzes the company's economic performance and labor productivity, and stays informed of local wage standards, government-issued wage growth guidelines, and income data of employees from similar enterprises in the locality and surrounding areas.

II. Issuing the Bargaining Offer

Due to various factors such as the rising consumer price index (CPI), the rate of wage growth has consistently failed to meet the satisfaction of the majority of employees. Prior to initiating the collective wage negotiation process, employee representatives submitted multiple proposals regarding wage increases. The trade union proactively issued a bargaining offer to the employer side, demonstrating the courage to initiate wage consultations and actively safeguard employees' legitimate rights and interests. Through proactive communication with the management, consensus was reached, ensuring the success of the bargaining offer. Upon mutual agreement, a Draft Special Collective Contract on Wages was formulated, reviewed and approved by the employee representative assembly, signed by representatives of both parties, and submitted to the county labor and social security authorities for review and record-filing. It is then publicly posted on the bulletin board in a timely manner.

III. The Bargaining Offer Document

The bargaining offer document includes the basis for the offer, the scheduled time and venue for formal negotiations, the number of representatives from each side, and relevant supporting materials. Prior to each negotiation session, the trade union sends out the offer document in advance. The basis for the offer primarily includes: the company's economic growth in the previous year, the economic forecast and affordability for the current year, the commitment to "doubling employee income over five years" set forth in the company's development plan, rising commodity prices, as well as income levels of employees at comparable enterprises in the same industry and neighboring companies.

The management attaches great importance to the offer document, providing comprehensive data to facilitate the smooth conduct of collective wage negotiations. Each time, the management gives a clear and timely response regarding the matters related to collective wage consultations, carefully selects five management-side negotiation representatives, and provides the union side with relevant data, including the previous year's sales revenue, corporate profits, balance sheets, total headcount, total payroll, and average employee wages.

Positive Outcomes

Since the implementation of the collective wage negotiation system at Nantong Yawei Machinery Manufacturing Co., Ltd., employee wages have achieved an average annual growth rate of 8–10%. The wage negotiation mechanism has not only secured wage increases but also effectively safeguarded employees' rights in various other aspects. More importantly, it has fostered a more harmonious working environment for all employees. The former trend of job-hopping has given way to a new landscape of cohesiveness, unity of purpose, and collective dedication.