Plans to introduce a new law regulating employment contracts have been criticized by overseas companies, which believe it will hand more control to the government-supported trade union, the South China Morning Post reported. A draft of the Labour Contract Law states the trade union would have to be notified of large job cuts, and have a say in deciding rules for employees. Some firms believe this will remove flexibility in hiring and firing, and represent a step backwards for economic reforms. The union, essentially the only one on the mainland, would be able to negotiate for workers through collective bargaining. The draft was published by the National People’s Congress and opened for public consultation.
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