Professor Cheung on China's New Labor Law

Professor has been a big fan of China's reform policy, because it is pragmatic and cautious; more importantly, it is the freeest of all free economy, and more 'capitalistic' than the US.

So it is worth our attention when he rings the bell.

• 很不幸，因为新劳动法的推出，我不能不在该文补加一个脚注。九十七岁的高斯不会高兴：他坚持该文要以中国大凯旋的姿态收笔。
• Very unfortunately, because of the launch of this New Labour Law, I had no choice but to add a footnote/caveat to my essay. Professor Coarse, at the age of 97, will not be happy about this caveat, he wanted me to end my essay with the full success of China's economic progress.

Cheung suggested a face-saving remedy for Beijing

• 前思后想，我认为如下的治方值得北京考虑。那是新法不改，但容许工商业机构选择（甲）、采用新劳动法，或（乙）、劳工合约完全自由。劳动市场于是有甲、乙两种机构或公司的选择存在。如果员工认为新法对他们有利，可选执行新法的机构，否则会选合约自由的。倒过来，如果老板采用自由合约的公司，不同意的员工可以另谋高就。这样分两种合约性质不同的机构或公司处理，员工的自由选择可以说清楚很多有争议性的问题。适者生存，不适者淘汰，哪种公司胜出是市场竞争的结果。如果两种公司一起存在，我敢赌身家，自由合约公司的员工的收入一定比选择新法的上升得快！
• I think Beijing needs to consider the following option. i.e., keep the New Law [to save face], while allowing the companies [in fact the employee] two options: the New Law and a "free contract"....... I am willing to place my bet, when there are two types of companies, the worker will choose to work for the second type.

IMO, to go one step further, Beijing can even let different provinces choose different laws (and perhaps force a few provinces to choose the new law), after a couple years, it will know which provinces win. This is fully consistent with the great helmsman Deng's Feeling the Stone to Cross the River doctrine.

Links below. Please use babelfish/google translator for a rough translation.

（2007.12.11）新劳动法的困扰

（2008.01.08）再谈新劳动法

（2008.01.15）灾难的先兆——三论新劳动法

（2008.01.22）新劳动法的启示