Regulations of the Shanghai Municipality on the Workers Congress

(Adopted at the 23rd Session of the Standing Committee of the 13th Shanghai Municipal People’s Congress on December 23, 2010)

Chapter I General Provisions

　　Article 1 In order to protect the democratic rights of workers and staff members, to build harmonious and stable labor relationship and to promote the common development of workers and staff members, enterprises, public institutions and privately-run non-enterprise units and other organizations, the present Regulations are formulated in accordance with the Constitution of the People’s Republic of China, the Labor Law of the People’s Republic of China, the Trade Union Law of the People’s Republic of China, the Company Law of the People’s Republic of China, the Labor Contract Law of the People’s Republic of China and other relevant laws and administrative regulations and in the light of the actual situation in this Municipality.

　　Article 2 The present Regulations shall apply to all enterprises, public institutions and privately-run non-enterprise units and other organizations (hereinafter referred to as“enterprises and public institutions”), which establish and implement the Workers Congress System in the administrative area of this Municipality.

　　Article 3 Enterprises and public institutions shall establish the Workers Congress System.

　　The Workers Congress should be held in enterprises and public institutions with 100 and more workers and staff members; usually general meeting of workers and staff members should be held in enterprises and public institutions where workers and staff members are less than 100.

　　The Workers Congress (or general meeting of workers and staff members, the same below) is the basic democratic management form of enterprises and public institutions, an important system for coordinating the labor relation and a setup for workers and staff members to exercise their democratic management rights.

　　The Workers Congress should fully promote democracy and implement the majority rule.

　　Article 4 Enterprises and public institutions shall guarantee that the Workers Congress exercises its functions and powers in accordance with laws, and ensure that the workers and staff members have their statutory rights to stay informed, participate, express their views and supervise.

　　Through the Workers Congress, workers and staff members shall participate in the democratic management of enterprises and public institutions in accordance with laws, support the legitimate production operation and management activities and safeguard their own legitimate rights and interests.

　　Article 5 Trade unions of enterprises and public institutions are the operating mechanism of the Workers Congress and undertake its daily work.

　　Article 6 The people’s government at various levels and its competent authorities of the state-owned assets, education, health, etc. as well as the administrative departments of human resources and social security shall guide and urge enterprises and public institutions to implement the Workers Congress System.

　　Article 7 Trade unions at higher level, industrial associations and relative syndicates shall guide and help the enterprises and public institutions to establish and improve the Workers Congress System.

Chapter II Authorities

　　Article 8 The Workers Congress exercises its authorities in accordance with laws to deliberate suggestion, to examine and adopt, to investigate and supervise, to democratically elect and democratically appraise.

　　Article 9 The following matters shall be reported and examined by the Workers Congress, and the opinions of workers and staff members representatives of the Workers Congress (hereinafter referred to as“workers and staff members representatives”) shall be considered:

　　(1) The development plans, annual operation management situations and important decisions of enterprises and public institutions;

　　(2) Formulation, revision and decisions made by enterprises and public institutions about the rules and regulations or major issues, which concerned with the immediate interests of workers and staff members;

　　(3) The collective consultation between trade unions and enterprises for remuneration adjustment, economic lay-offs, mass labor disputes, and serious hidden dangers or occupational hazards and other matters identified in the production process;

　　(4) The working status of the operating mechanism of the Workers Congress and the matters for consultation and settlement at the joint conference;

　　(5) Such important matters as financial budget and final statements, restructuring programs and major reform measures as well as bankruptcy application or dissolution of the state-owned, collective and holding enterprises;

　　(6) Such important matters as financial budget and final statements, major restructuring programs of public institutions;

　　(7) Other matters stipulated by laws, rules and regulations, or agreed by enterprises and public institutions and trade unions through consultation, which shall be reported to the Workers Congress.

　　Article 10 The following matters shall be reported to the Workers Congress for examination and adoption.

　　(1) The draft collective agreements concerning labor remuneration, working hours, rest and vocations, insurance and welfare, etc.;

　　(2) The draft specialized collective agreements concerning remuneration adjustment mechanism, protection of the rights and interests of female workers and staff members, working safety and health, etc.;

　　(3) Such matters as the remuneration system, welfare system, labor management system, education and training system for the workers and staff members, the resettlement programs concerning workers and staff members in the reform and restructuring, and other important matters concerning the immediate interests of workers and staff members, which are planned out by the state-owned, collective and holding enterprises;

　　(4) Such matters as the appointment, evaluation and performance rewards and penalties, the principle and approach for revenue allocation, welfare system of workers and staff members, the resettlement programs concerning workers and staff members in the reform and restructuring, and other important matters concerning the immediate interests of workers and staff members, which are planned out by the public institutions;

　　(5) Other matters stipulated by laws, rules and regulations, or agreed by enterprises and public institutions and trade unions through consultation, which shall be submitted to the Workers Congress for examination and adoption.

　　Article 11 The following matters shall be reported to the Workers Congress, and shall be subject to examination and supervision:

　　(1) The handling status of the proposals raised by the Workers Congress;

　　(2) The implementation status of the important matters examined and adopted by the Workers Congress;

　　(3) The performance status of the collective agreements and specialized collective agreements;

　　(4) The implementation status of working safety and health standards, payment of social insurance premiums, withdrawal and use of education and training funds of workers and staff members, etc.;

　　(5) Other matters stipulated by laws, rules and regulations, or agreed by enterprises and public institutions and trade unions through consultation, which shall be reported to the Workers Congress and be subject to examination and supervision.

　　Article 12 The following personnel shall be elected democratically by the Workers Congress:

　　(1) Members of the democratic management panel (committee);

　　(2) Workers and staff members representatives in the board of directors and the board of supervisors;

　　(3) Other personnel stipulated by laws, rules and regulations, or agreed by enterprises and public institutions and trade unions through consultation shall be elected democratically by the Workers Congress.

　　Article 13 The following personnel shall be appraised democratically by the Workers Congress:

　　(1) Workers and staff members representatives in the board of directors and the board of supervisors;

　　(2) Senior managerial personnel in the state-owned, collective and holding enterprises, and person in charge of public institutions, and other personnel are subject to democratic appraisal by the Workers Congress in accordance with the relevant provisions of this Municipality;

　　(3) Other personnel stipulated by laws, rules and regulations, or agreed by enterprises and public institutions and trade unions through consultation are subject to democratic appraisal by the Workers Congress.

Chapter III Workers and staff members Representatives

　　Article 14 Workers and staff members of enterprises and public institutions can be elected as workers and staff members representatives.

　　Workers and staff members representatives are democratically elected by workers and staff members, where the permanent tenure system is implemented and workers and staff members representatives can be reelected. Their term of office is same as the term of the Workers Congress.

　　Branch companies, branch institutions (schools), departments, teams, sections, etc. are usually taken as the constituencies for the election of workers and staff members representatives. More than two thirds of all workers and staff members in a constituency shall participate in the election. The candidates with more than half of affirmative votes of all workers and staff members can be elected. The election results shall be published.

　　Article 15 Workers and staff members representatives shall be constituted mainly by the front line workers and staff members, where the middle and senior managerial personnel shall not be more than 20%. But for the trans-regional and cross-industry large-scale group enterprises, the proportion can be increased appropriately. The proportion of female workers and staff members representatives usually adapts to that of the female workers and staff members in the unit.

　　For enterprises and public institutions in the fields of education, science and technology, culture, health, etc., workers and staff members representatives of which shall mainly be composed of the personnel directly involved in the professional and technical work.

　　Article 16 The rights of workers and staff members representatives:

　　(1) Have the right to elect, to be elected, deliberate and vote in the Workers Congress;

　　(2) Have the right to know, make proposals for, participate in and supervise important matters concerning the unit development and the rights and interests of workers and staff members;

　　(3) Participate in such activities concerning the duty performance of workers and staff members representatives as training and inspection;

　　(4) Be regarded as normal attendance and enjoy due welfare treatment when the duty performance is implemented during the production and working hours.

　　Article 17 The obligations of workers and staff members representatives:

　　(1) Learn and publicize relevant laws, rules and regulations and policies, improve their own qualities, enhance the ability to participate in democratic management, strive to complete their duties well;

　　(2) Contact workers and staff members in the constituency, listen to their opinions and suggestions, and express their wishes and demands;

　　(3) Implement the resolutions of the Workers Congress and perform relevant work assigned by the Workers Congress;

　　(4) Timely notify workers and staff members in the constituency the information about participating in the activities of the Workers Congress and duty performance, accept appraisal and supervision;

　　(5) Strictly abide by rules and regulations of the unit, keep business secrets.

　　Article 18 In case vacancies occur in workers and staff members representatives, by-election shall be held in time in accordance with the prescribed democratic process in the original constituency. The election results shall be published.

　　Workers and staff members representatives shall be recalled for not performing without any reason or cannot fulfill the relevant duties, shall be agreed by more than half of all workers and staff members of the original constituency.

　　Article 19 when workers and staff members representatives exercise their rights in accordance with laws, any organization or individual shall not suppress, obstruct or revenge.

Chapter IV Organizational System

　　Article 20 The quota of workers and staff members representatives in the Workers Congress of enterprises and public institutions shall be determined in accordance with the following provisions:

　　(1) Where the number of workers and staff members is 100 to 3000, the base quota of workers and staff members representatives shall be 30. The increase of quota shall not be less than 5 for the increase of every 100 workers and staff members.

　　(2) Where the number of workers and staff members is more than 3000, the quota of workers and staff members representatives shall not be less than 175.

　　(3) Where the number of workers and staff members is less than 100 and the Workers Congress System is implemented, the quota of workers and staff members representatives shall not be less than 30.

　　The Workers Congress can set nonvoting representatives in accordance with the actual requirements. The nonvoting representatives have no right to vote or elect.

　　Article 21 The term of office of the Workers Congress is three to five years. Where the term of office of the Workers Congress needs to be extended for any reason, the extension shall not be more than one year.

　　The Workers Congress shall hold a meeting at least once a year. The Workers Congress can be held correspondingly when it is proposed by enterprises and public institutions, trade unions or more than one third of workers and staff members representatives.

　　Article 22 The presidium elected by the Workers Congress shall Regulations of the Shanghai Municipality on the Workers Congress preside over the meeting and deal with relevant significant matters during the period. The number of presidium shall not be less than 7 with the proportion of the front line workers no less than 50%.

　　Article 23 The Workers Congress can establish a number of democratic management panels (committees) to organize workers and staff members representatives for carrying out democratic management activities and handle relevant matters assigned by the Workers Congress. The principal of panel (committee) shall be taken charge by workers and staff members representatives.

　　Article 24 When the Workers Congress is not in session, except for matters stipulated by laws, rules and regulations to be submitted to the Workers Congress for examination and adoption, a joint conference of the Workers Congress can be held in enterprises and public institutions to handle the important matters through consultation, which are required to be handled in time. The result shall be reported to the next Workers Congress.

　　The joint conference shall be convened by trade unions. The attendance of the conference shall be the head of workers and staff members representatives group (team), the principal of the democratic management panel (committee), the members of the presidium and trade union committee members.

　　Article 25 The branch companies (factory), branch institutions (schools) subordinated to enterprises and public institutions shall establish the Workers Congress System and exercise the democratic management rights of workers and staff members corresponding to its management

　　authority.

　　Article 26 The fund of the Workers Congress shall be disbursed from the management cost of enterprises and public institutions.

Chapter V Rules of Procedure

　　Article 27 The Workers Congress must be convened with more than two thirds of all workers and staff members representatives to attend.

　　Article 28 The subject and agenda of the Workers Congress shall be consulted and determined by enterprises and public institutions and trade unions.

　　Article 29 The written materials submitted to the Workers Congress for examination and vote shall be sent to workers and staff members representatives seven days prior to the convening of the Workers Congress; workers and staff members representatives group (team) shall organize workers and staff members representatives for discussion, and trade unions shall collect and sort out the opinions and suggestions of workers and staff members representatives in time.

　　Where workers and staff members representatives have big disagreement on important matters concerning the immediate interests of workers and staff members, enterprises and public institutions and trade unions shall make revision upon consultation according to the opinions of workers and staff members representatives, and resubmit to the Workers Congress for examination.

　　Article 30 The secret ballot method shall be taken for the examination and adoption of the Workers Congress where the adoption is based on winning affirmative votes of more than half of workers and staff members representatives.

　　Article 31 The matters and resolutions examined and adopted by the Workers Congress shall be published to all workers and staff members after the adjournment.

　　Article 32 Trade unions of enterprises and public institutions have the right to request rectification, and enterprises and public institutions shall make corresponding rectification according to the requirements where the matters, which shall be submitted to the Workers Congress for examination in accordance with laws, rules and regulations, are not submitted in accordance with legal procedures.

　　The relevant decision made by enterprises and public institutions shall not be binding on workers and staff members where the matters, which shall be submitted to the Workers Congress for examination and adoption in accordance with laws, rules and regulations, are not submitted in accordance with legal procedures.

　　Article 33 The matters examined and adopted in the scope of the authority of the Workers Congress shall be binding on the present unit and all workers and staff members, which must not be changed without reconsideration and re-adoption by the Workers Congress.

Chapter VI Operating Mechanism

　　Article 34 Trade unions of enterprises and public institutions shall perform the following responsibilities during the preparation and convening of the Workers Congress:

　　(1)Organize and carry out election, replacement, training, etc. of workers and staff members representatives;

　　(2)Prepare the relevant documents for the Workers Congress;

　　(3)Propose the suggested candidate list for presidium, democratic management panel (committee), and workers and staff members representatives in the board of directors and the board of supervisors.

　　(4)Carry out collective consultation with enterprises and public institutions on behalf of workers and staff members, form the draft collective agreements, draft specialized collective agreements and drafting description, collective consultation reports, etc.;

　　(5) Organize workers and staff members representatives group (team) to discuss the issues submitted to the Workers Congress for examination and vote before and in the meeting, collect and sort out relevant opinions and consult with enterprises and public institutions for rectification;

　　(6) Be responsible for other preparation and organizational work of the Workers Congress.

　　Article 35 When the Workers Congress is not in session, trade unions of enterprises and public institutions shall perform the following responsibilities:

　　(1) Mobilize workers and staff members to implement resolutions adopted by the Workers Congress, and urge the implementation of resolutions and handling of proposals;

　　(2) Establish contact system with workers and staff members representatives, accept the complaints and proposals from workers and staff members representatives, maintain their legitimate rights and interests;

　　(3) Organize workers and staff members representatives and democratic management panel (committee) to carry out such daily democratic management activities as making proposals, inspection and quality evaluation;

　　(4) Complete other work assigned by the Workers Congress.

　　Article 36 Within seven working days since the adjournment of the Workers Congress, trade unions of enterprises and public institutions shall report the relevant information to the trade unions at higher level.

Chapter VII Area-wide and Industry-wide Workers Congress

　　Article 37 The enterprises in the same communities, industrial parks or commercial buildings can jointly establish area-wide Workers Congress. The enterprises with the same or similar production or operation business can establish industry-wide Workers Congress.

　　The operating mechanism of the area-wide and industry-wide Workers Congress is the area-wide and industry-wide trade unions.

　　The township and town people’s governments and subdistrict offices shall actively promote the establishment of area-wide and industry-wide Workers Congress, support and protect its normal operation of the Workers Congress System.

　　Article 38 The area-wide and industry-wide Workers Congress shall exercise the following responsibilities:

　　(1) Listen to the area-wide and industry-wide status report about implementing labor laws, rules and regulations and policies as well as the area-wide and industry-wide labor relations report, and put forward opinions and suggestions;

　　(2) Examine such important matters directly concerning the immediate interests of workers and staff members as the labor remuneration, working hours, rest and vacations, labor safety and health, insurance and welfare, training programs for workers and staff members and labor quotas, etc., and put forward opinions and suggestions;

　　(3) Examine and adopt area-wide and industry-wide draft collective agreements as well as the draft specialized collective agreements;

　　(4) Examine and supervise the enterprises in implementation of laborlaws and rules and regulations, of decisions adopted by the area-wide and industry-wide Workers Congress, and of the area-wide and industry-wide collective agreements;

　　(5) Other responsibilities shall be exercised by the area-wide and industry-wide Workers Congress.

　　Article 39 The number and composition of workers and staff members representatives in the area-wide and industry-wide Workers Congress shall be determined through consultation between trade unions and enterprises in the same area or industry. The constituencies shall be set up according to the actual situation. Workers and staff members shall be organized to democratically elect their representatives in proportion.

　　The number of workers and staff members representatives in the area-wide and industry-wide Workers Congress shall not be less than 30, of which the managerial personnel shall not be more than 30% and the front line workers and staff members shall not be less than 50%.

　　Article 40 The collective agreements and the specialized collective agreements as well as relevant resolutions adopted by the area-wide or industry-wide Workers Congress shall be published to all workers and staff members.

　　Article 41 The organizational system, rules of procedure, and the responsibilities of operating mechanism of the area-wide and industry-wide Workers Congress shall be implemented according to the relevant provisions of the Workers Congress of enterprises and public institutions.

Chapter VIII Supervision, Inspection and Legal Responsibility

　　Article 42 The municipal, district and county human resources and social security administrative departments, trade unions at the same level and the representatives of enterprises and public institutions shall jointly facilitate the establishment and improvement of the Workers Congress System through the tripartite consultation mechanism of labor relations.

　　Article 43 The municipal, district and county trade unions shall integrate the implementation status of the Workers Congress System by enterprises and public institutions into the supervision and inspection scope of the labor laws and rules and regulations. The Trade Union Labor Laws Supervision Rectification Opinions Notice shall be issued, requiring enterprises and public institutions to make rectification where the activities in breach of the present regulations occur. The Trade Union Labor Law Supervision Treatment Proposal Notice shall be sent to the authorities of the state-owned assets, education, health and the administrative departments for human resources and social security at the same level where enterprises and public institutions fail to make rectification within the prescribed period. These authorities and departments shall investigate and deal with the matters in accordance with relevant laws.

　　Article 44 Where a dispute arises from the implementation of the Workers Congress System, enterprises and public institutions and trade unions shall consult for a settlement. Where no settlement can be reached through consultation, the case shall be submitted to trade unions at higher level for coordination and settlement with the relevant authorities.

　　Article 45 Any enterprise and public institution that, in violation of the provisions of the present Regulations, commits one of the following acts shall be ordered by the people’s governments of the municipal, district and county as well as the relevant departments to make rectification, and the legal representatives and related responsible personnel shall be criticized and educated. The government shall handle the case in accordance with laws where the personnel refuse to make rectification.

　　(1) Obstruct the establishment of the Workers Congress System;

　　(2) Prevent the Workers Congress from exercising its statutory functions and powers;

　　(3) The matters, which shall be submitted to the Workers Congress for examination and adoption, are not submitted in accordance with the legal procedures and cause damage to workers and staff members;

　　(4) Change arbitrarily or refuse to implement the resolutions adopted by the Workers Congress and violate the rights and interests of workers and staff members.

　　Article 46 Where the legal representatives and other managerial personnel of enterprises and public institutions humiliate, slander or revenge by using the means of violence or threat, which inflicts injuries upon workers and staff members, shall be punished by the public security organ in accordance with laws. Where grave consequences are caused and thus a crime is constituted, criminal responsibility shall be investigated in accordance with laws.

　　Where the trade union principal of enterprises and public institutions does not perform duties in accordance with the provisions of the present Regulations and causes damage to the rights and interests of workers and staff members, trade unions at the level of municipality, district, county and industry (bureau) shall order him to make rectification within the prescribed period. In case of serious circumstance, the person who is held responsible shall be dismissed in accordance with laws.

　　Article 47 Where the relevant departments of the municipal, district and county people’s governments and their staff members violate the provisions of the present Regulations, neglect duties, abuse functions and powers, play favoritism and fraudulence, the units or the persons who are held responsible shall be imposed administrative sanctions by their units or the superior competent departments in accordance with laws. Where a crime is constituted, criminal responsibility shall be investigated in accordance with laws.

Chapter IX Supplementary Provisions

　　Article 48 The present Regulations shall become effective as of May 1, 2011.

　　(The translation of the present Regulations is for reference only. In case of discrepancy between the English translation and the original Chinese text, the Chinese text shall prevail.)