China is widely viewed as a tightly controlled society, which is why this spring’s headlines about labor strife surprised so many people. An automaker was hit with a series of strikes, and an electronics manufacturer was shaken by a string of employee suicides. And government officials, who usually clamp down on labor unrest and suppress news coverage, allowed employees to criticize the companies for weeks—and let state-run media report what they said.
But lawyers at General Electric Company already knew that China is a challenging labor environment. Two years ago, employees at a GE plant near Shanghai went on strike, and even locked in their managers. The dispute received no publicity—unlike this year’s strikes at Honda Motor Co. or the turmoil at Foxconn Technology Company, where nine employees committed suicide (and four tried to) during the first five months of 2010.
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