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Major Trends

1. PRI Announced Five Principles for Responsible Investment in Farmland
Sep 7, 2011 - In an effort to ensure that investment in farmland accounts for environmental, social, and governance (ESG) factors, the UN's Principles for Responsible Investment (PRI) established a Farmland Working Group, of which had recently announced five Principles for Responsible Investment in Farmland(link to: ), aiming to promote environmental sustainability, respect labor and human rights, protect existing land and resource rights, promote high business and ethical standards.

2. SAI & UN Women to Develop an Implementation Plan for UN Gender Equality Seal
In September 2011, SAI and UN Women jointly established a partnership in developing an implementation plan for the UN Gender Equality Seal. This new auditable standard and certification system will focus on gender equality in a company and its supply chain. Read more Industry Observation

3. Minimum Wages Raised in Hunan and Henan
Hunan and Henan raised the minimum wages on Oct 1, 2011. Details as below:

For the latest minimum wages in all regions of China, please click the SGS’ real time updated China's Minimum Wages Map .

4. Guangdong Announces New Wage Growth Guideline in 2011
Oct 17, 2011 – Department of Human Resources and Social Security of Guangdong Province recently announced its new wage growth guideline in 2011: the wage increase reference line is 15%, top-limit is 20%, and lower limit is 5%. This will be applicable to all enterprises in Guangdong.

5. 16 Enterprises in Shenzhen Exposed for Back Pay
Sep 1, 2011 – Shenzhen Municipal Bureau of Labor and Social Security unveiled 16 enterprises for back pay in quarter 2 of 2011, with a total unpaid wage of RMB 9.74 million. Shenzhen government last year launched a joint executive and judicial mechanism to combat illegal wage arrears.

6. Henan Adjusted the Unemployment Insurance Benefits
With immediate effect from Oct 1, 2011, in the light of Henan Unemployment Insurance Laws and Regulations, the unemployment insurance benefits are adjusted to RMB864/month, RMB760/month, RMB656/month. The benefits are 80% of the minimum monthly wage payment.

7. Work-related Injury Insurance Benchmark Rates in Taizhou, Jiangsu Will Be Increased from November 1, 2011
Taizhou is going to raise the benchmark rate of work-related injury insurance from November 1, 2011. This specified adjustment measure is: Industry A will be adjusted from 0.5% of total payroll to 0.8%; Industry B will be adjusted from 1% to 1.6%; and Industry C will be adjusted from 2% to 2.4% (Industry A, B, C are distinguished by the work-related injury risks they may have).

8. An Enterprise and a Hospital in Dongguan Were Prosecuted as Joint Defendants for Hepatitis B Discrimination
Sep 30, 2011 – A job applicant took an enterprise to court for Hepatitis B discrimination, as well as the hospital that revealed his personal information of physical examination. Dongguan Bureau of Human Resources and Bureau of Health fined the enterprise and the hospital respectively in May.

9. An Enterprise Was Fined for Firing a Pregnant Employee
Oct 16, 2011 – An employee in Hangzhou reported to relevant department that she was fired for pregnancy. After investigation, it is found that the employer neither signed the labor contract nor paid the social insurance for this employee. According to China Labor Law, if an employer fails to sign a written employment contract with an employee after the employee starting working for more than one month but less than one year, the employer shall each month pay the employee twice his wage. This employee was paid with RMB14,410 at the end.

10. China Implements Guidelines for Emergency Exercises of Production Safety Accidents
China State Administration of Work Safety has published a new industrial standard for work safety- Guidelines for emergency exercises of production safety accidents (hereinafter referred to as Guidelines) on April 9, 2011. This was implemented on September 1, 2011. Read more(PDF  125KB)

11. Liquid Chlorine in a Chemical Factory Leaked and Caused a Large Number of Injuries
Oct 16, 2011 – An accident of leakage of liquid chlorine happened in a chemical factory in Changzhou, Jiangsu, causing 1 death and 165 injuries. It is said that there was a similar accident on Jun 29 last year, and this accident was caused by the negligence of the driver of hazardous chemicals.

12. A Fire in a Carton Factory Caused Disastrous Damages
Oct 11, 2011 – A fire broke out in a carton factory in Ji’an, Jiangxi due to overload of electricity, which resulted in damages of over RMB100,000 worth of cartons and machines. The factory owner said overload of electricity and short-circuit of aging power lines were the root of causing this accident.

13. Special Inspection of Environmental Law Enforcement to Be Conducted in China
Ministry of Environment Protection of China announced that a special inspection of law enforcement on chemical environment management and hazardous wastes will be conducted in China from Oct to Nov, 2011. This will be the strictest environmental supervision inspection aiming to prosecute and reduce violations of environmental laws.

14. Tracking the Taizhou Lead Poisoning Scandal: The Owner Was Thrown in Jail and Fined
Sep 28, 2011 – The court in the Luqiao District of Taizhou, Zhejiang sentenced the president of a battery company to 15 months in prison. Previously, the industrial emissions from his plant poisoned 168 villagers, including 53 children. The court also imposed fines of RMB100,000 on the company and RMB50,000 on the president.

International News

15. US, EU Apparel Companies and Major Industry Association Pledge to Help End Forced Child Labor in Uzbekistan
Sep 19, 2011 - More than 60 of the world’s top apparel companies and brands as well as the American Apparel and Footwear Association (AAFA), representing over 800 brands, have signed a pledge, saying not to knowingly source Uzbek cotton harvested by forced child labor. These companies will maintain this pledge until the elimination of this practice is verified by the International Labor Organization (ILO).

Hot Events

Meeting Quality Management System Audit Requirements of International Buyers - SEMINAR

Date: Nov 11, 2011(Shenzhen)
Nov 30, 2011(Shanghai)
Time: 2:00 p.m. - 5:00 p.m.
Language:  Mandarin
Fee: Free
Contact: For registration inquiries
Ms. Ge
0755-25328888 *8937
Download Registration Form (PDF 81.6KB)

 SMETA/Sedex Member Ethical Trade Audit Requirement Training
 
Date:     Nov 30, 2011
Place: Shenzhen
Language:  Mandarin
Fee: RMB 880 / person / day
(Special discounts for early birds!)
Contact: For registration inquiries
Ms Luo
0755-25328888 *8455 (Shenzhen)

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