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This report presents the findings of a study of industrial relations and working conditions in metal-work related sectors in China in 2006. The study commissioned by the International Metal Workers Federation (IMF) focuses on five of China’s booming manufacturing industries: 

• information and communication technologies
• electronic and electrical appliances
• iron and steel
• ship building
• automobile factories.

The study covers 27 foreign-invested factories which represent a cross section of US, German, Japanese, Korean, Finnish and Swedish transnational corporations and their suppliers. The study finds that:

• the working conditions at the surveyed factories are better than the average industrial working condition in China
• wages are generally higher than the local average, significantly higher in some cases
• both working conditions and industrial relations are better in factories located to closer to political centres such as Beijing and Shanghai when compared to those in factories located in remote parts of the country.

The study also finds certain negative aspects such as: 

• one third of the surveyed factories have no trade unions
• most workers have very little understanding of what a trade union is or its capacity to represent workers interest
• several factories exceed legal limit for overtime work and pay less than legal minimum overtime pay
• some factories make workers stand at their work stations for 8-11 hours a day
• the study finds no evidence to show that companies with active corporate social responsibility policies had better system of industrial relations or working conditions. The same is true for participation in external initiatives like international framework agreements.

Overall, the study emphasises the need for actions to improve the rights of workers in view of the growing presence of foreign capital and multinational companies operating in China.

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