Resource: Labor Disputes

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In courthouses across China, the volume of labor disputes is on the rise. Li Mingna is a young worker who is taking on his former employers in a fight over his severance package. Though he is young and only has a high school education, Li Mingna represents himself in court against his employer's contract lawyer. This case is an example of the court mediation of disputes that emerge in China's new economy.

When China's Civil war ended in 1949, Mao Zedong and the Communist Party established the People's Republic of China. They wanted to centralize power, unify the country and develop China's industry and infrastructure. A few of Mao Zedong's nationwide projects were the Great Leap Forward, a 5-year economic and social plan that he initiated in 1958, and the Cultural Revolution of the 1960s. Unfortunately, at the end of the Maoist era, the economy and the education system of China were very weak.

Deng Xiaoping, who became China's leader in 1976, introduced new policies to encourage economic growth. Large segments of the economy were cut loose from direct state control. The private sector boomed, a new class of entrepreneurs prospered and China's formal legal system was re-established. At the same time, however, the Communist Party remained in control of a one-party, authoritarian state and a growing gap between rich and poor emerged. Employers used their newfound market power to exploit workers. Tensions developed. Conflicting claims of property rights came to be a significant problem.

The government of China decided to address these issues by trying to expand and modernize the legal system. Since the 1980s the country has opened almost 400 law schools, training hundreds of thousands of lawyers and judges. The country has also created education campaigns to encourage people to settle their issues in court rather than on the streets.

Before 1995, many judges did not have college degrees or much knowledge about the law. Since 1995, the requirements to become a judge have gotten stricter: now judges need to have a university degree and must pass a national exam. However, the judges are appointed and paid by the one-party government. Their decisions, as well as decisions and actions of lawyers, are often influenced by the Communist Party and local governments. Many Chinese citizens are bothered by the corruption they see as widespread in China.

In 2003, Hu Jintao was elected as the President of the People's Republic of China. His challenges include trying to find solutions to China's economic, social and environmental problems. One of his initiatives, the Socialist Core Value System, encourages honesty and law-abiding and ethical behavior among all Chinese citizens. Whether President Hu's goals lead to real improvements will be a key measure of China's progress toward implementing the rule of law.

Print Questions for Discussion

• Summarize this case. How does the worker, Li Mingna, use the legal system to settle his disagreement with his employer?
• How might the decision in plaintiff Li's favor turn out to be a "hollow victory"?
• Why might the government of China like to see court proceedings such as this one publicized to audiences outside China?