Recruiting in China

BEIJING (AFP) — The number of labour disputes in China have soared amid the global financial crisis as laid-off employees seek salaries owed to them by suddenly defunct companies, state press reported on Wednesday.

A total of 98,568 cases involving labour disputes were filed in Chinese courts in the first three months of 2009, up 59 percent year on year, the China Daily said, citing figures from the nation's supreme court.

"Amid the global financial crisis, the number of businesses going into the red or going bankrupt continues to grow, leading to more disputes over salary claims," Du Wanhua, a top official with the court, was quoted as saying.

Du said the rise was also likely due to the introduction last year of a labour contract law that provided a more solid legal footing for complaints and increased workers' awareness of their rights.

The newspaper said the increase followed a 93 percent surge in such cases in 2008 to 286,221.

Chinese officials have repeatedly warned of the potential for widespread unrest if unemployment continues to grow.

The World Bank last month forecast China's economy would grow 6.5 percent in 2009.

That would be its slowest expansion in nearly two decades and well below the eight percent level that Chinese leaders say is needed to keep enough people in work and to avoid unrest.

The economy, which grew nine percent in 2008, has slowed sharply amid the collapse of overseas markets for China-made goods due to the world economic downturn.

Thousands of factories and other businesses have failed in recent months, throwing millions out of work and leading to protests in some areas as angry workers demanded back pay owed by failed companies.