Asia: The Role of Unions

Unions are becoming increasingly prevalent across Asia. Here we take a look at which aspects of the employment relationship unions may be involved in Singapore, Hong Kong, the People's Republic of China, Thailand, Indonesia, South Korea and Japan.

Singapore

• Trade unions are usually involved in negotiating collective agreements (or memorandums of understanding which are the precursor to a collective agreement).
• Trade unions can also represent executive employees on an individual basis in certain prescribed situations.
• In addition, unions may represent employees in unfair dismissal complaints and specific salary related claims. Unions must also be notified of and consulted with on transfers of employment.

Hong Kong

• Where trade unions are active they are usually involved in organising industrial action, such as strikes, picketing and go-slow or work-to-rule campaigns, and in negotiating working terms and conditions with employers on behalf of members.
• It is useful to note that there is no legislative regime governing collective bargaining and collective agreements in Hong Kong and no statutory recognition of collective bargaining agreements. Even if a trade union enters into an agreement with the employer, the employee can only rely on the terms of the agreement if those terms become part of an individual employee's contract of employment.

PRC

• Trade unions are usually involved in negotiations with employers on the implementation or revision of rules and regulations affecting employees, and on the terms of collective labour contracts. Trade unions must also be consulted before employers are able to implement an 'economic layoff'.
• Additionally, trade unions may participate in employee work injury investigations and labour dispute mediations. Trade unions can also review disciplinary action taken by employers against employees and potential breaches by employers of their obligations. Trade unions can also be involved in industrial action such as strikes.

Thailand

• Trade unions are usually involved in negotiating with employers on collective bargaining agreements, which usually set out the provisions crucial to the employees' employment conditions. These include job security, criteria and conditions concerning termination of employment, employers' management powers, increase or reduction in wages, welfare and benefit, improvement of work environment and work rules and regulations.
• Trade unions may also participate in other labour related activities, e.g. economic layoff of groups of employees, if this is provided for in the relevant collective bargaining agreement.

Indonesia

• Trade unions are quite protective of their members and play an extensive role in Indonesia. Trade unions are usually involved in negotiating collective labour agreements, approval of work rules and employers’ compliance of minimum wage and outsourcing issues.
• Trade unions are also involved in individual termination cases involving their members. They can represent employees in bipartite negotiation with employers.

South Korea

• Trade unions are usually involved in collective bargaining and daily routine activities, including issues regarding job security and workers' participation in management and welfare issues.
• Trade unions also participate in the approval of work rules and regulations and wage negotiations. In addition, trade unions may get involved in approving disciplinary sanctions for employees if this is provided for in the relevant collective agreement.

Japan

• Trade unions are usually involved in negotiations with employers in relation to union security and labour agreements, wages, working conditions and management employment and personnel matters. In particular, this includes the conclusion, revision and effectuation of collective agreements, revision of wages, working hours, days off and holidays, work environment and health management, and objection to dismissal and reinstatement of dismissed employees.