#China #Beijing #Gig Economy #Collective Bargaining #All-China Federation

Collective Bargaining: Empowering Workers in the Digital Age

In a major step forward for workers' rights in the digital era, the All-China Federation of Trade Unions (ACFTU) has spearheaded a nationwide initiative focusing on collective bargaining for workers engaged with platform companies. This groundbreaking campaign, which has come to fruition in 2025, has opened the doors for employees across various sectors to negotiate work conditions that directly affect their daily lives.

The Initiative's Framework

This initiative employs a centralized collective bargaining approach, which facilitates negotiations between technology-driven platform companies and their workforce. The focus is on the algorithms that govern how these workers operate, which directly influence essential aspects like remuneration, working hours, and safety protocols.

As of now, a striking 15 of the 16 targeted major platform companies have engaged in negotiations. More than 20 million workers are expected to benefit from the outcomes of these discussions, marking a significant milestone in the labor landscape of the gig economy.

The agreements resulting from these negotiations are poised to bring transformative changes. They ensure that hourly remuneration will not fall below local minimum wage standards, provide additional support during adverse weather conditions, and pave the way for a gradual reduction of penalties associated with exceeding time limits. These steps reflect a growing recognition of the importance of workers' welfare and their significant role in the gig economy.

Highlights of the Agreements

Particularly within the ride-hailing sector, notable agreements have emerged. Key actions include the establishment of transparent pricing rules, a reduction in commission rates, and the enhancement of anti-fatigue measures. New features, such as abnormal order interception and mandatory rest reminders, demonstrate a concerted effort to prioritize worker safety and well-being.

Through these negotiations, algorithmic management—the use of algorithms to dictate labor conditions—has come under scrutiny. The ACFTU and participating platforms recognize that the fostering of stronger labor relations and better working conditions is essential for both the workers' interests and the long-term sustainability of platform businesses.

Landmark Agreements

In April, amidst extensive discussions in Shanghai, the '2025 Ele.me (Shanghai) On-Demand Delivery Algorithm and Labor Rules Agreement' was established. This was the first of its kind in China, focusing on the needs and rights of delivery riders. The agreement set forth several key provisions aimed at safeguarding riders' core interests, significantly impacting over four million riders associated with the Ele.me app.

Additionally, a broader meeting took place on September 10 where delivery riders from across the nation gathered to discuss pertinent issues such as compensation, working hours, and overall welfare. The consensus from these discussions culminated in a labor rules agreement, underscoring the growing unity and collective voice of workers in the sector.

Innovative Insurance Subsidies

In a notable partnership, Taobao Flash Shopping and Ele.me have pioneered an initiative to provide nationwide coverage for pension and medical insurance subsidies for riders. Such collaborative efforts highlight a recognition of the evolving needs of workers and the platforms’ commitment to enhancing their welfare.

Through this agreement, both platforms have established a shared understanding which covers various critical aspects including labor remuneration, occupational protection, and welfare benefits. Importantly, the agreement stipulates that riders who meet certain criteria will receive substantial subsidies for their insurance premiums.

Localized Negotiation Efforts

The success of such initiatives has led other provinces, like Hebei, to initiate their own negotiations. The agreements in these regions have focused on defining workers' rights and improving protections related to income, hours of work, and benefits. The outcomes reflect a shift towards collaborative frameworks involving workers, businesses, and local government.

Looking Ahead

As trade unions across China emphasize the importance of two-way negotiations, the focus now extends to fostering 'technology for good.' By prioritizing workers' rights and ensuring transparency in algorithmic management, this initiative sets a precedent for other countries grappling with similar challenges in the gig economy.

This groundbreaking work by the All-China Federation of Trade Unions stands as a testament to the power of collective bargaining, empowering workers to take an active role in shaping their work environments while simultaneously promoting the sustainable growth of the digital economy. Businesses and workers alike have much to gain from shared dialogues in this evolving landscape.