Sunnyvale, CA -- (SBWIRE) -- 03/28/2012 -- The Chinese Government and the All-China Federal Trade Unions (ACFTU)are escalating efforts to promote collective wage bargaining amongst corporations, especially multinationals operating in the country.

China aims to rope in 80% of its enterprises with labor unions in what it terms as the ‘Rainbow Plan’, which is a massive effort to institute collective wage bargaining practices in the country by 2013. For smaller companies without labor unions, the collective bargaining will be in the form of regional or industry-specified collective contracts.

First announced in 2010, efforts to promote the plan have gained steam recently in view of increasing labor disputes in the country. The current labor law gives a brief outline for collective bargaining but it is difficult to enforce in practice due to bureaucratic hassles.

In a recent case Swedish firm Ikea agreed to higher monthly wages and pay hikes linked to company’s yearly turnover for employees under the collective bargaining agreement.

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