Labor Dispute Resolution in the Shenzhen Special Economic Zone

Abstract

Based on case studies in the Shenzhen Special Economic Zone, this article analyzes the modern labor dispute resolution system in China. Although heralded as a bold step towards marketization with convergent characteristics of the Western market economies, the system suffers from institutional hangovers from the previous era and lacks certain Western benchmark features. Among the factors affecting the system's implementation, ownership is found to be the most important. State-owned enterprises show the highest probability of establishing a dispute resolution system, whereas a lower degree of compliance is found in the nonstate-owned enterprises where strong market forces prevail. The existence of a trade union seems to have no impact on workplace compliance.

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