Chinese labor relations in Ghana
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This document categorizes and describes the different types of Chinese individuals and businesses operating in Ghana. It identifies three main categories: staff of state-owned enterprises, owners and staff of privately-owned companies, and independent traders. It then provides details on the characteristics and behaviors of Chinese state-owned enterprises, privately-owned SMEs, and the isolation and poor treatment of local Ghanaian workers by some Chinese employers. However, it notes trends of improvement through the localization of Chinese businesses and greater involvement of organizations like the Ghana Trade Union Congress and Ghana China Chamber of Commerce to improve labor relations and practices.
Chinese labor relations in Ghana
- 1. Jinghao Lu 22nd August, 2012
- 2. Categorizing the Chinese in Ghana ? State-owned enterprise (SOEs) staffs ? Privately-owned company owners and staffs ? Independent Traders
- 3. Chinese State-owned Enterprises (SOEs) ? About 20 out of 500 registered companies at the Chinese embassy are SOEs ? Mostly large-scale business in infrastructure, mining, manufacturing, energy generation, telecom and fishery ? Relatively high percentage of Chinese staffs ? Chinese Staffs: ? Short-term stay, except for the senior executives ? Young in age, mostly ? Monthly income between US$1,500 and US$2,500, excluding stipend
- 4. Chinese Privately-owned, Small- and Medium-Enterprises(SMEs) ? Locally registered ? Entrepreneurs from Hong Kong, Taiwan and lately Mainland China ? In 2011, 41 manufacturing companies, 25 Chinese restaurants, 8 clinics, 7 fishing companies and 59 trading companies (according to Chinese embassy) ? Generally law-abiding, localized and experienced ? …with a long-term plan
- 5. Independent Traders ? Not included in the discussion
- 6. Formation of Isolation ? Level of isolation varies, depending on nature of business and prospective length of stay ? Concerning safety, competition and salary ? Reinforcement of isolating living arrangement from the company ? Language barrier from both sides
- 7. From Isolation to Perception of Local Labor ? Rudimental belief in life meaning and work value ? Difference in education, skills and learning ability ? Concept of labor union
- 8. From Perception to Treating Local Labor Perception Practice “Productivity is essential; ? Discrimination of hiring but some Ghanaians do ? Low wage and welfare (pay as what one deserves) not understand this” ? Dislike / disband labor union “Ghanaians are not loyal” ? Impatience of training local workers ? Using Chinese staffs whenever possible, including employing overstayed Chinese workers Difference language and ? Obstacle for Ghanaian to get promoted management culture “Low-skilled workers ? Maintaining temporary employment for low-skilled should be obedient; but jobs Ghanaians are not” ? Immediate dismissal ? Disciplinary measures applied on Ghanaian workers “Ghanaian government ? For all the violations above, believing “in the end workers are corrupt rent- money can solve the problems” seekers”
- 9. Ghanaian Workers’ Dilemma ? Not many alternatives to Chinese employers ? Ghana Trade Union Congress can only speak on behave of labor unions; but many Chinese SMEs forbid labor unions to be formed ? Sabotage is a way to release anger ? Mistrust widens
- 10. Trend of Improvement: Localization ? Chinese SOEs and multinationals are willing to improve labor relations ? Trusted Ghanaian workers are good mediators of labor tension ? Organization of events to allow more interactions
- 11. Trend of Improvement: Ghana Trade Union Congress (TUC) ? Improved knowledge about SOEs and their top-down management systems ? Participated in think-tank forum and visited Chinese government leaders ? Creatively inform Chinese employers about labor laws ? Maintain relationship with the Chinese Embassy ? Lecture for Chinese SOE managers as well as Ghanaian workers ? Translate Ghanaian labor laws into Mandarin ? Use the Ghanaian lawyers employed by Chinese companies to communicate ? Rewarded the Chinese companies which made positive changes with good publicity in the media ? Cooperated with the Ghanaian authorities that supervise various projects undertaken by the Chinese ? Allowed Chinese companies to learn slowly
- 12. Role of Chinese Business Leaders ? Chinese business associations such as Ghana China Chamber of Commerce (GCCC) play an important role ? Publishing annual Ghana Chinese Business Directory ? Translating Ghana news into Chinese ? Increasing influence of GCCC
- 13. Road Ahead ? According to TUC, between 2009 and 2011, Chinese labor practice in Ghana generally improved ? This trend will continue thanks to organizations such as TUC and GCCC ? Chinese companies are learning about western business model and labor practice in order to localize ? Through Forum on China-Africa Cooperation (FOCAC), Ghana’s government and civil society increased their knowledge on Chinese business culture ? Enlarging Ghana’s talent pool is important ? Confucius Institute is about to be established in Ghana ? GCCC’s membership is growing ? Ghanaian media can encourage Chinese labor practice improvement
- 14. Question and Comments? Please contact Jinghao Lu (jinghao.lu@gmail.com) to obtain the manuscript