Surge in Labour Disputes and Protests Amid China's Economic Slowdown

As China's economic growth slows, labour disputes in the property and manufacturing sectors rise, highlighting social safety net concerns. Public discontent is growing despite media control, with migrant workers particularly affected. Recent strikes reflect rising social pressure and persistent issues in labour relations.

China's economic slowdown is fueling a rise in labour disputes within its property and manufacturing sectors, raising alarms about the social safety net for blue-collar workers. Despite stringent government media controls, public discontent and hardship are increasingly visible, as highlighted by Nikkei Asia.

Recent protests include an ex-soldier in Beijing accusing a Kunming office of mistreatment on August 1 and a Hunan demonstrator calling for freedom and elections on July 30, linking his protest to his past democratic support. The China Labour Bulletin (CLB) reports a 3 percent increase in labour strikes in the first half of 2024, with a 12 percent rise in property and manufacturing sector incidents, collectively accounting for 80 percent of these strikes.

Nikkei Asia notes that this rise mirrors growing social pressure amid economic hardships as China's growth dipped to 4.7 percent in Q2 2024 from 5.3 percent in Q1. Economic challenges are prompting industries to pivot towards exports or shift production abroad. Significant disputes include Akcome Technology's bankruptcy and a major strike at a Jiangsu shoe factory over layoffs and compensation.

Construction workers, mainly protesting unpaid wages, are leading these demonstrations, spurred by the financial struggles of property developers. Migrant workers, enduring long hours and low wages with limited social security, suffer particularly from the lack of formal contracts and welfare coverage. The government promises to address these issues, yet measures like raising the retirement age are seen as insufficient by many workers.

Experts caution that migrant workers face a precarious labour environment with limited job security. The government's vows to improve social security are viewed as necessary but not adequate. The increase in strikes highlights ongoing issues in China’s labour relations.

Economic slowdowns, global trade shifts, and domestic policies have placed significant pressure on businesses and workers, often leading to layoffs, wage reductions, and delayed payments, inciting protests. Workers are now more aware of their rights and are increasingly willing to fight for them, driven by issues like unpaid wages, hazardous work conditions, and insufficient benefits.