The competition of an enterprise can be strengthened by establishing a harmonious relationship with its workers, says an article in Market News. The following is an excerpt:

During the ongoing session of the NPC, Sun Baoshu, vice-minister of labor and social Security, said that the investment environment could be improved if the labor contract law is carried out strictly and thus a harmonious and stable relationship between labor and capital is established. In fact, he said, harmonious and stable relations can add a competitive edge to enterprises.

Labor relations are one of the most basic social relations. The labor contract law further clarifies the rights and obligations of both workers and enterprises, protects the legal rights of workers, and keeps the interests of workers and enterprises in balance. Only by maintaining harmonious and stable relations with workers can enterprises keep growing.

In practice, some employers try to cut costs and beef up competition by illegally refusing to pay social securities for employees. It is not only unfair competition for employers who follow the law, but also harmful to the rights of employees. Some employers also abuse their rights by using interns, delay signing labor contracts with them, or shorten the term of their contracts. It will lead to the unstable employment of workers and make them disloyal to an enterprise.

Since the annual sessions of the NPC and the CPPCC started, some deputies and members have held the same view that strict implementation of the labor contract law will strengthen the loyalty of employees and contribute to the long-term growth of an enterprise and social stability.

To promote the full implementation of the labor contract law, much work needs to be done. We should further strengthen its publicity so that workers and enterprises can have a full and clear understanding of the law; we should also accelerate the pace of related measures and supporting regulations to guide the employment market.

(China Daily March 13, 2008)