JD.com And Didi Are Letting Their Workers Unionize

JD.com and Didi are letting their workers unionize

Despite intense political pressure to change its labor practices, two of China's largest technology companies are forming labor unions for their employees. The industry is under intense political pressure to change its labor practices.

As previously reported by a source familiar with the situation, the Chinese ride-hailing company Didi (DIDI) announced last month on an internal forum that it had organized an employee union for its employees. The individual stated that the group was affiliated with the All China Federation of Trade Unions (ACFTU), which is a government-backed organization that requires all mainland Chinese trade unions to be registered with it before operating.

JD.com (JD) also announced on Wednesday that it had formed a union for its employees earlier this week, according to a post on the company's Chinese social media accounts. "United protection of [workers'] rights and interests, as well as collective resolution of challenges," according to the company, which held its first meeting on Monday to kick off the union's activities.

The move comes as China continues its historic regulatory crackdown on the technology sector, and employers are under increasing pressure to ease up on the infamous "996" work culture that has become synonymous with the country.

Working from 9 a.m. to 9 p.m. six days a week, known as "996," and frequently associated with the technology industry, was recently condemned in detail by the country's highest court, which issued a lengthy condemnation.

In a joint statement with the Ministry of Human Resources and Social Security issued last Thursday, the Supreme People's Court noted that "excessive overtime work in certain industries has received widespread attention."

Workers are entitled to "rest and vacation," according to the statement.

There are a number of other companies that allow their employees to form unions, in addition to Didi and JD. Additionally, Meituan, the Chinese food delivery giant, has several local labor unions, including one for workers in Shanghai.

Every one of the three companies claims that they have recently taken steps to improve worker safety and security. According to Didi's April announcement, a new committee has been established to protect the rights and interests of ride-hailing drivers while also stabilizing their employment.

Deputy chairman Shu Sun is the CEO of Didi's Chinese ride-hailing business, and he reports to Didi co-founder and chairman Will Wei Cheng. The committee is chaired by Shu Sun, who also serves as Didi's vice chairman.

The conditions of labor are under the spotlight

This week, the Chinese government increased the pressure on businesses.

It was announced on Thursday that China's Transport Ministry had summoned 11 companies, including Didi and Meituan, to warn them against hiring unlicensed drivers and to remind them of the importance of paying reasonable wages and providing sufficient rest time.

According to Aidan Chau, a researcher with the Hong Kong-based group China Labour Bulletin, there has recently been outrage over the treatment of food and e-commerce delivery workers in China — this is especially true given the boom in those industries during the coronavirus pandemic.

It was not immediately clear whether drivers would be included in Didi and JD's new labor unions. In response to a request for comment, neither company provided a response. Meituan and Didi did not immediately respond to a request for comment on the latest warning issued by the Ministry of Public Security.

Chau stated that he believed the formation of the new unions was most likely prompted by recent regulatory actions taken by the Chinese government.

His comments to CNN Business came after a long period of time in which society had discussed the extremely intense work rhythms and practices in the new technology sector, which he described as well as the "new platform economy."

"There is an increasing number of small-scale protests and labor strikes taking place in these industries. As a result, the [Chinese Communist] Party is attempting to alleviate the situation through the formation of a labor union."

Another Chinese e-commerce company, Pinduoduo (PDD), came under fire earlier this year for the untimely deaths of two of its employees during the holiday season, prompting widespread criticism.

Starting with the most recent incident, a woman in her twenties collapsed in December while walking home with colleagues in Urumqi, which serves as the capital of the Xinjiang region of China. Her death was confirmed by the company, but no further information was provided about the circumstances surrounding it.

And then there was the suicide of another worker in Changsha, a city in southern Hunan province, who committed suicide by jumping from his apartment window in January. At the time, Pinduoduo stated that the man had previously requested time off without providing an explanation for his request.

Each of these cases brought attention to China's overwork problem and sparked a debate about how corporate culture should be changed in the country.

Finally

Chau explained that until recently, workers would typically band together informally to discuss labor conditions, such as in groups on Chinese social media platforms such as WeChat or QQ. He further explained that

According to the author, "it is extremely difficult for workers to establish a structured organization," he continued, noting that unions frequently require significant resources, such as potential funding and volunteer assistance.