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Labor Disputes Soar 30 Percent in Shanghai

Labor disputes jumped 30 percent in the first half of this year, the Shanghai Labor and Social Security Bureau said Monday.

More than 9,000 cases were filed in the first half. Among them, 3,500-plus cases involved employees of private and foreign-invested companies. Disputes involving stockholding companies saw the biggest surge at 38 percent, or 1,200 cases, officials said.

"As many private companies or joint ventures were just starting up, the ignorance or disregard of labor laws directly led to the mounting number of disputes," said Sui Wei, vice director at the bureau's arbitrary division.

Among the 8,500 cases arbitrated this year, 85 percent were won by employees.

"That implies that employees now have a better awareness of their rights, which is also another reason for the dispute increase," Sui said.

Most cases tend to focus on business or economic disputes - such as commercial confidentiality or patent-related issues - rather than the previous focus on payment delay, overtime work or use of unregistered employees.

The Labor and Social Security Bureau provided one example. A university graduate surnamed Li filed for arbitration with his former employer, a foreign-invested company, over business confidentiality.

As the company's product designer, Li signed a business confidentiality pact included in his five-year contract.

It stated that he could not run a business in the same sector or work for the company's competitors within three years of termination.

But the company agreed to pay Li a "business confidentiality allowance" if they terminated the contract, Li told arbitrators.

However, the company failed to keep its promise after Li resigned.

Li took a new job in the same position at a competitor. The original company insisted that Li violated the agreement first.

The arbitrator ruled that Li could continue working at the second position.

Sui also said bureau hired 13 lawyers and law scholars to work as part-time arbitrators this month, and they would be responsible for three to five cases every year.

(Shanghai Daily July 20, 2004)