Workers at a Shenzhen electronics factory have forced their employer to pay lay-off compensation in advance as a safeguard against potential factory relocation plans…The surprising intervention of the district union was a key factor in the dispute, according to the director of Chunfeng, Zhang Zhiru… The active involvement of the official union, and them taking the workers’ side, was the highlight of this case.

The dispute began on 23 May when workers went on strike…In the following days, the Chunfeng Centre organized two trainings for the workers on how to engage in collective bargaining with management. The workers…formed a workers’ committee, and invited management to the negotiating table…After several rounds of negotiations, the factory put out an announcement…that it would not relocate and would begin to calculate the social insurance and housing fund payments. But…threatened to dismiss the strikers if they did not return to work within three days. The workers refused to be intimidated and continued the strike.

…Longhua district trade union…[then] intervened and helped the workers negotiate with management. On 1 June, management agreed to provide all workers with a lump-sum compensation package…Workers have learned from bitter experience that if they don’t get lay-off compensation in advance, the chances of getting anything at all after the factory closes its doors are slim…