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Purpose

Collective bargaining (CB) in China is perceived as inadequate, thanks to the lack of trade union independence and representation. However, there are interesting developments in some parts of the country, including Wenling, a massive manufacturing center examined here.

Design/methodology/approach

This qualitative case study covers all stakeholders, including the government, trade unions, sweater association, workers and employers.

Findings

This paper examines initially the way that trade unions are constrained by corporatism in China. Increased industrial conflicts could push employers to become the engine of change. It finds that employers endeavor to use CB as a tool to stabilize employment relations and neutralize workers resistance. A gradual transition in labor relations system is on the way. The “Wenling Way” described here could become more widely used and is seen in some quarters as a possible model.

Originality/value

This paper offers new insights into the under-reported area of Chinese industrial relations.

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