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Beijing - The All-China Federation of Trade Unions (ACFTU) recommended over the weekend that unions be established in all non-public companies, including those that are foreign funded as well as Hong Kong and Taiwan-funded companies.

The ACFTU released an urgent notice late on Friday, demanding that its branches push for union coverage in order to improve the protection of workers' interests, especially migrant workers.

It urged unions to promote a collective wage negotiation system according to Labor and Trade Union laws, as well as to help workers on the production line gain higher pay. Unions should also push companies to enrich workers' lives by organizing more social activities, recreation and sports.

The recent spate of suicides at the Taiwan-funded manufacturer Foxconn, and a large-scale strike at the Japanese automaker Honda's Foshan plant, both located in South China's Guangdong province, have highlighted the living conditions of workers, many of whom are struggling with low pay and bad working conditions.

Last week, Foxconn offered a 30 percent rise in wages and Honda plans to raise basic pay by almost a quarter.

An ACFTU spokesperson said the proportion of China's GDP that goes toward wages has been shrinking for 22 consecutive years, suggesting a potential social conflict.

Experts warn the issue should be handled carefully, as it concerns a large group of people key to the country's economic growth and social stability.

The Beijing municipal government last week decided to increase the city's minimum wage from 800 yuan ($118) to 960 yuan per month. It is estimated that the 20 percent increase in wages will benefit nearly 100,000 people.

Prior to Beijing's adjustment, Guangdong, Shandong, Ningxia, Hubei and many other provinces and autonomous regions had also raised their minimum wages. The average increase is about 15 percent.

Statistics from the ACFTU show that at the end of 2008 more than 4,100 major foreign companies were doing business in China. At that time, 82 percent of the companies had trade unions. But the number in small-scale private companies was much lower and company trade unions were sometimes interfered with or even controlled by the company.

CHINA DAILY

(China Daily 06/07/2010 page2)