Chinese Labor Relations in Ghana: Isolation, Tension and Compromise

Jinghao Lu22nd August, 2012

Categorizing the Chinese in Ghana

State-owned enterprise (SOEs) staffsPrivately-owned company owners and staffsIndependent Traders

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 staffsChinese Staffs:

Short-term stay, except for the senior executivesYoung in age, mostlyMonthly income between US$1,500 and US$2,500,

excluding stipend

Chinese Privately-owned, Small- and Medium-Enterprises(SMEs) Locally registeredEntrepreneurs from Hong Kong, Taiwan and

lately Mainland ChinaIn 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

Independent Traders

Not included in the discussion

Formation of Isolation

Level of isolation varies, depending on nature of business and prospective length of stay

Concerning safety, competition and salaryReinforcement of isolating living

arrangement from the companyLanguage barrier from both sides

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

From Perception to Treating Local LaborPerception Practice

“Productivity is essential; but some Ghanaians do not understand this”

• Discrimination of hiring• Low wage and welfare (pay as what one

deserves)• 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 management culture

• Obstacle for Ghanaian to get promoted

“Low-skilled workers should be obedient; but Ghanaians are not”

• Maintaining temporary employment for low-skilled jobs

• Immediate dismissal• Disciplinary measures applied on Ghanaian

workers

“Ghanaian government workers are corrupt rent-seekers”

• For all the violations above, believing “in the end money can solve the problems”

Ghanaian Workers’ Dilemma

Not many alternatives to Chinese employersGhana 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 angerMistrust widens

Trend of Improvement: Localization

Chinese SOEs and multinationals are willing to improve labor relationsTrusted Ghanaian workers are good mediators

of labor tensionOrganization of events to allow more

interactions

Trend of Improvement: Ghana Trade Union Congress (TUC)Improved knowledge about SOEs and their top-down

management systemsParticipated in think-tank forum and visited Chinese government

leadersCreatively inform Chinese employers about labor laws

Maintain relationship with the Chinese EmbassyLecture for Chinese SOE managers as well as Ghanaian workersTranslate Ghanaian labor laws into MandarinUse the Ghanaian lawyers employed by Chinese companies to

communicate Rewarded the Chinese companies which made positive changes

with good publicity in the mediaCooperated with the Ghanaian authorities that supervise various

projects undertaken by the ChineseAllowed Chinese companies to learn slowly

Role of Chinese Business Leaders

Chinese business associations such as Ghana China Chamber of Commerce (GCCC) play an important rolePublishing annual Ghana Chinese Business

DirectoryTranslating Ghana news into Chinese

Increasing influence of GCCC

Road AheadAccording to TUC, between 2009 and 2011, Chinese labor

practice in Ghana generally improvedThis trend will continue thanks to organizations such as

TUC and GCCCChinese companies are learning about western business

model and labor practice in order to localizeThrough 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 importantConfucius Institute is about to be established in GhanaGCCC’s membership is growingGhanaian media can encourage Chinese labor practice

improvement

Question and Comments?

Please contact Jinghao Lu (jinghao.lu@gmail.com) to obtain the manuscript