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RR RUEHCN RUEHGH
DE RUEHBJ #1711/01 1600839
ZNR UUUUU ZZH
R 090839Z JUN 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 8246
INFO RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHCN/AMCONSUL CHENGDU 6502
RUEHGZ/AMCONSUL GUANGZHOU 0765
RUEHGH/AMCONSUL SHANGHAI 4892
RUEHSH/AMCONSUL SHENYANG 6317
RUEHHK/AMCONSUL HONG KONG 7603
RUEHIN/AIT TAIPEI 5694
RUEHGV/USMISSION GENEVA 1147

UNCLAS SECTION 01 OF 04 BEIJING 011711 
 
SIPDIS 
 
DEPARTMENT FOR EAP/CM, DRL/IL 
DEPARTMENT PASS USTR FOR KARESH, ROSENBERG 
DEPARTMENT PASS USTR FOR STRATFORD, WINTER, ALTBACH, CELICO 
LABOR FOR ILAB HELM, LI ZHAO, SCHOEPFLE 
TREASURY FOR OASIA/ISA-DOHNER AND KOEPKE 
USDOC FOR 4420/ITA/MAC/MCQUEEN 
GENEVA FOR CHAMBERLIN 
LABOR COLLECTIVE 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ELAB ETRD PHUM PGOV CH
SUBJECT:  MOLSS Seeks More Inspectors, Training to Improve 
Labor Law Enforcement 
 
 
Sensitive But Unclassified; Handle Accordingly 
 
¶1.  (SBU) Summary:  The Director of the Inspection Division 
of the Ministry of Labor and Social Security's Legal 
Affairs Department is aware of and trying to remedy the 
problem of too few labor inspectors in China; his goal is 
to double the total number of inspectors so that each 
inspector is responsible for 8-10,000 workers.  MOLSS has 
petitioned the State Commission on Personnel Service 
Structure and Establishment Administration for additional 
personnel at the national level, but China's political 
system will require provinces, cities and other lower level 
units wishing to add inspectors to do the same.  MOLSS, 
through the Labor Rule of Law Project with the U.S. 
Department of Labor, anticipates completing and beginning 
to use training materials for inspectors this year.  While 
it is undeniable that there are underage workers in China, 
China is doing very well in preventing this problem, the 
Director claimed.  While it is heartening that MOLSS is 
attempting both to increase the number of labor inspectors 
and to find ways to help them organize so as to better do 
their jobs, it is clear that this will not be an easy task. 
In addition, this Director's remarks show how much 
anticipated, and how much needed, are the materials for 
training inspectors produced by the U.S.-funded Labor Rule 
of Law Project.  End Summary. 
 
¶2.  (U)  Laboff, Labor Intern and Labor Assistant met with 
Li Yansong, Vice Director, Inspection Division, Legal 
Affairs Bureau, Ministry of Labor and Social Security 
(MOLSS) to discuss the Inspection Division's plans for 
improving workplace inspections.  China's labor inspection 
system was established in 1994 following passage in that 
year of the Labor Law, Director Li said.  Currently MOLSS 
is working to expand the size of the inspection force, and 
to improve methods of inspections so as to better enforce 
the law. 
 
MOLSS Conducts Annual and Special Inspections 
--------------------------------------------- 
 
¶3.  (U)  The Inspections Division conducts regular and 
special inspections; special inspections are conducted 
jointly with other ministries and organizations.  For 
example, for three consecutive years, the inspectorate has 
conducted, with the Ministry of Construction and the All- 
China Federation of Trade Unions, special inspections of 
wage payments to migrants at the end of the year, and this 
inspection may be continued on an annual basis.  This year, 
MOLSS conducted, with the Public Security Bureau and 
ministry of Commerce (MOFCOM), a special inspection 
following Spring Festival to eliminate illegal employment 
agencies who cheat migrant workers.  Currently, a special 
one month campaign is being conducted to assure that labor 
contracts are being signed, that wage and hour regulations 
are being followed, and that underage workers are not being 
employed.  In the months of July and August, another 
special inspection will be conducted to assure employer 
compliance with protections in the law for women and 
underage workers.  The Inspection Division also pushes the 
local Labor and Social Security Bureaus (LSSBs) to 
strengthen their inspection goals. 
 
MOLSS Trying to Remedy Inspector Shortage 
----------------------------------------- 
 
¶4.  (U)  MOLSS knows that the Inspection Divisions 
throughout the country are shorthanded, Director Li said. 
Therefore,  MOLSS is trying hard to increase the number of 
inspectors so that each inspector is responsible for 8- 
10,000 workers; to do this would require approximately 
twice the current number of inspectors.  MOLSS has asked 
 
BEIJING 00011711  002 OF 004 
 
 
the State Commission of Personnel Service Structure and 
Establishment Administration (Bianzhi, an organization 
under the authority of the State Council which administers 
the size and internal structures of government bodies) to 
increase the number of administrative personnel assigned to 
the Inspection Division.  MOLSS has asked the ACFTU and 
Women's Federation to support its request to the 
Commission.  However, because China's administrative system 
devolves responsibility for inspections to the provincial 
and municipal levels of government, each level has to deal 
individually with the problem of expanding the workforce. 
In addition, China's policy of reducing the size of 
government will pose many practical obstacles to increasing 
the numbers of inspectors. 
 
Guangzhou Tianzhe Inspection System Could Be Model 
--------------------------------------------- ---- 
 
¶5.  (U)  In southern China, there is one inspector for each 
40-50,000 workers, which makes it very difficult to assure 
adequate inspections, Director Li said.  However, the 
Tianzhe district of Guangzhou has developed what he 
considers to be the best system of inspections.  Tianzhe 
has established four inspection teams composed of full time 
professional inspectors.  Their work is assisted by part 
time inspectors, also from the LSSB.  Legal Affairs 
Supervisors, drawn from the All-China Federation of Trade 
Unions and from the Women's Federation, and Workplace 
Inspection Coordinators, a group of laid-off workers hired 
with reemployment funds and trained in the inspection 
process, are empowered to warn companies about violations 
of the law, and to report these violations to higher 
authorities if the company does not remedy the violation. 
 
¶6.  (U)  In the Guangzhou system, each full time inspector 
is assigned responsibility for one level of government. 
Inspectors have access to a computer, which links them to a 
network established by the Guangzhou LSSB.  The network 
contains records of companies' violations and other 
information.  In Director Li's view, the Tianzhe model has 
been effective.  However, it is s than many foreign models, 
Mr. Li said.  However, it is very expensive to establish 
and to maintain, and as a result, would be hard to 
establish nationwide, he noted. 
 
Training System for Inspectors in Development 
--------------------------------------------- 
 
¶7.  (U)  In order to improve the inspectors' professional 
skills, MOLSS, with the help of the U.S. Department of 
Labor in the Labor Rule of Law Project, is preparing 
materials for training inspectors.  Drafting of the 
materials will be finished by September, and approved by 
the end of 2006.  Some pilot programs may be conducted 
throughout the country this year as well.  In addition, 
MOLSS will establish two networks, the first an information 
technology network, and the second a geographic network 
pursuant to which each inspector will take charge of a zone 
or region. 
 
Enforcing the Requirement for Labor Contracts 
--------------------------------------------- 
 
¶8.  (U)  Employers are required by law to sign a labor 
contract with every employee.  Jurisdiction over labor 
contracts within MOLSS does not reside with the Inspection 
Division, but rather with the Labor Relations Division. 
Moreover, not every locality has a requirement that a 
contract be verified by the labor agency, the Director 
said. 
 
¶9.  (U)  MOLSS is currently engaged in a campaign to assure 
 
BEIJING 00011711  003 OF 004 
 
 
that employers sign contracts for all their employees 
within three years.  The Inspection Division is involved in 
this campaign but the Labor Relations Division is in 
charge.  The Labor Contract Law which has been drafted and 
will be passed before the end of 2006 will provide 
increased protections for workers. 
 
Child Labor Allegations Rigorously Investigated 
--------------------------------------------- -- 
 
¶10.  (U)  Employers are responsible for obtaining the 
identification card of all workers employed in their 
company, and for verifying the card's validity, Director Li 
said.  If an individual applying for a position has no 
card, then it is the obligation of the employer to contact 
the Public Security Bureau from the individual's home town 
in order to verify the individual's age.  These obligations 
fall exclusively on the employer. 
 
¶11.  (U)  The Inspection Division inspects employers who 
are alleged to be employing child workers upon receipt of a 
report or complaint, regularly on its own initiative, and 
during special inspections.  These inspections have been 
conducted for many years and inspectors are very 
persistent, Director Li indicated.  Many investigations are 
conducted jointly with the ACFTU and Women's Federation. 
All LSS Bureaus are aware that this is a hot button issue, 
and that they are to tolerate no violations of the policy, 
he said.  Child labor is a preoccupation for inspectors who 
are constantly be on the alert for children working, 
Director Li said.  Whenever he enters a hotel or a 
restaurant, he immediately scans the faces of workers to 
see if there are any that appear to be too young. 
 
¶12.  (U)  It is undeniable that there are underage workers 
in China, Director Li said.  However, as a systematic 
matter, it is clear that China is doing well in attacking 
this problem, and, according to the Director, this is the 
assessment of the International Labor Organization as well. 
A map he viewed in Holland showed China's rating in this 
regard to be the same as the United States and European 
countries, the Director said.  China's traditions of 
history, culture and especially of valuing education all 
militate against child labor. 
 
¶13.  (U)  China's laws and regulations also strongly 
condemn child labor.  In 2003, the State Council issued a 
document that established severe punitive measures for 
employers found violating prohibitions against child labor. 
The document requires a fine of 5,000 rmb. (more than USD 
600 at the current exchange rate) per month per child found 
working.  The criminal law also contains a provision 
stating that an employer who threatens the life of a child 
worker will be held to be criminally responsible.  Last 
year, when he visited California as part of the Labor Rule 
of Law program, he was told that California authorities 
also considered this fine to be a severe punishment for 
such a violation.  Nonetheless, he stated, some enterprise 
managers lack awareness, and compulsory education is not as 
complete as desired. 
 
¶4.  (U)  In his personal view, Director Li said, China 
should make some changes in its laws.  He has looked at the 
U.S. law, and believes that it is clearer than Chinese law 
as to when a young person may work, and under what 
circumstances, such as vacations from school, holidays, 
etc.  China has not created sufficient legal working 
opportunities for young people; these legal opportunities 
could be good opportunities for their growth and 
development. 
 
¶15.  (SBU)  Comment:  While it is heartening that MOLSS is 
 
BEIJING 00011711  004 OF 004 
 
 
attempting both to increase the number of labor inspectors 
and to find ways to help them organize so as to better do 
their jobs, it is clear that this will not be an easy task. 
In addition, this Director's remarks show how much 
anticipated, and how much needed, are the materials for 
training inspectors produced by the U.S.-funded Labor Rule 
of Law Project. 
 
Randt