Relevance of the Pattern of Labor Disputes and the Transformation of Manufacturing Industry — Based on the Case Analysis of Labor Disputes in Yangtze River Delta Region

The incidents of collective labor disputes resonantly occur under some conditions in manufacturing industry of Yangtze River Delta Region (2011-2015). Trigger factors include the transformation and upgrading of industrial structure, the high liquidity of light industry asset, the exploitation of private and foreign companies, the participation of a large number of labors and the depriving of economic interests of the workers. Study found that the labor conflicts occur more often in abnormal production changes of manufacturing than in normal one, more in light industry than heavy one, more in private enterprises than other ones, more in large-scale enterprises than small-scale ones and more for economic requests of participants than for noneconomic ones.


Introduction
Yangtze River Delta region is the most economically developed area in China, which lies in the East China area, and includes three administration regions such Shanghai, Jiangsu Province and Zhejiang Province. Since reform and opening-up, the country vigorously develops its economy. Owing to the loose economic policy, the economy of Yangtze River Delta region has developed rapidly and the economic status is upgraded. According to the national bureau of statistics of the People's Republic of China, China's GDP in 2015 is up to 67.6708 trillion yuan, among which the gross domestic product is 12.8802 trillion yuan in Yangtze River Delta region (Shanghai, Jiangsu Province and Zhejiang Province), accounting for 19% of gross national product. A total of 95997 manufacturing enterprises are registered in this region. Its human resource is rich, and employs 15.4669 million people. Ownership is multiple with public ownership, private ownership and mixed ownership enterprise, in which private enterprises accounted for 83% of the total number of manufacturing enterprises in Yangtze River Delta.
Manufacturing labor disputes cases increased year by year. Based on the statistics of the club bureau of human resource in Yangtze River Delta region (see figure 1), there are 708 mass labor disputes cases (accounting for 14% during the same period 5021 cases of mass labor disputes in China) happened in the Yangtze River Delta region during 2011-2015. Among them, 372 cases, which happened in manufacturing, accounted for 52.7%. The labor disputes increase, which accompanied by 11, 23, 58, 126 and 154 year by year in Yangtze River Delta region during 2011-2015. From the view of incidence of manufacturing, cases of labor disputes in the manufacturing occurred account for more than 50% of labor disputes cases in Yangtze River Delta region, which are stubbornly high level during the 2013-2015. There was a special social and economic condition to bring about industry conflicts in China during its reform and opening era, and there were a little differences between the normal production and the abnormal production about the characteristics of industry conflicts. In fact, the transformation and upgrading of industrial structure could bring obviously about more industry conflicts than the normal production. It is necessary to separate the abnormal production from the whole manufacturing production when the industry conflicts are analyzed.

Literature Review
Transformation of manufacturing industry in Yangtze River Delta region has its intrinsic motivations. Firstly, the pressure of resources endowment is increasing. The pressure of resources endowment lies in the rising of labor costs and the scarcity of land supply (Ying-ji Liu, 2013). Secondly, the load of environment bearing becomes heavier. It has caused the quality decline and environment-protected cost increasing in manufacturing of Yangtze River Delta region. Third, the leading role of the traditional industrial economy is not strong. From 2011 to 2015, the growth rate of manufacturing output reduced year by year in Yangtze River Delta region, which has been less than 6.2%, while the unemployment rate of manufacturing registered is as high as 3%. Fourthly, multiple participants have different requests (Xin-yi He et al., 2015). The participants include on-job-in workers, laid-off workers and retired workers. The retired workers are the important driver to industry conflicts in Yangtze River Delta region.
Industrial transfer has been the strategic choice of economic development in Yangtze River Delta (Zhi-biao Liu, 2011). Reasonable industrial concentration degree of natural is the best state of external economy, which labor productivity is highest and the cost of unit production is lowest. Concentration of the industry layout asks the appropriate dispersion and the transferring to the region which resource constraint is not strong, in order to achieve the national economic balance, coordination of regional development. Since the 1990's, manufacturing industry has been transferring from Shanghai to Jiangsu and Zhejiang in the process of suburbanization (Ting-ting Ye, 2012). Based on the system of national paid land implemented and the improvement of transportation network, the original land of Yangtze River Delta is not able to undertake a large number of demands of new labor-intensive manufacturing enterprises. There is a trend that the low value-added industries transferring to the suburbs and the central and western provinces. The spread of the manufacturing industry has a significant industrial difference: the higher technology intensity, the diffused the radius, and the smaller the industry, the higher the degree of labor-intensive, the greater the industry diffusion radius (Jun-song Wang, 2014). It started on the path of upgrading and adjustment in industrial structure. There is a big drop in the first industry and the second industry but the investment of third industry has a defined increase. The proportion of the total output value of regional reached 51% in the third industry. From the point of manufacturing technology innovation, the R&D investment as a share of GDP reached 2.5% in manufacturing of River Delta in 2015. The strategic emerging industry has a great development but the energy industry growth rate slowed down (Yong-chun Huang, 2014).
Change of industrial structure and industrial spatial change will inevitably cause the change of labor relations. In the labor relations labor is a special commodity in return for remuneration with social attributes. Workers not only get economic benefits, also need to work for dignity, decency, and spiritual satisfaction (Hirschman, 1970). If the ultimate purpose of labor and capital is win-win in labor relations, labor cooperation should be harmonious; If the interest aims whole industry manufacture occurrence rate on the Case Analysis of Labor Disputes in Yangtze River Delta Region of both sides of labor and capital is opposite, the both sides of labor and capital will come into conflicts (Chang, 1995). If the labor problems can't be settled quickly and properly, labor problems will turn into a mass social incident or a destructive labor conflict (Lester Kurtz, 1999). The industry transformation easily causes laborer's inadaptability (Li Qun, et al., 2014). During the process of industrial transformation, workers can't update their operating skills and knowledge and lag behind the technological level. In this condition workers are vulnerable to production management personnel and the system of controls, or are forced to accept a pay-cut, or forced to be fired (Zi-yuan Zhang, Shu-ming Zhao, 2009). Supported by the "labor contract law", workers will argue and object to the decrease of income or loss of jobs (Bao-hua Dong, 2012). Overall, the existing literature for the analysis of industrial transformation and upgrading of economy is relatively abundant, and has carried on the reason analysis and correlation analysis to the relationship between the transformation and upgrading of industry and labor disputes, which makes a good bedding. However, these documents do not subdivide the styles of labor disputes, not to do a correlation analysis between labor disputes and industrial transformation and upgrading, and not to reveal the characteristics of all kinds of labor disputes.

Model Building
In examining the relationship between manufacturing and industrial relations, Jordi model will be used, which is built by the principles of Cobb-Douglas Production Function.
Cobb-Douglas Production Function shows the relationship between the output and input of elements. Namely, Q = f (L, K, N, E). Among them, Y = A * K á * L â is an expression of general mathematical model. Due to the adequacy of annual data, this paper has to take the static annual data (2011)(2012)(2013)(2014)(2015) to analyze the influence of transformation and upgrading of industrial structure to the manufacturing labor relations.
In order to analyze the influence of transformation and upgrading of industrial structure to the manufacturing labor relations, this paper builds a linear function with the logarithmic form, which eliminates the difference variance in sequence and unit, and gets the following econometric model: In function (1) above, R is taken as labor conflict, X as the influence factors to labor conflicts, i as styles of labor conflicts (i = 1, 2, 3, 4, 5), j as forms of the transformation and upgrading of manufacturing (j = 1, 2, 3, 4), áis constant, âis the degree of labor conflict influenced by a variety of factors, äis the error term. In function (2), R is taken as explained variable, which represents the labor disputes, X j as explanatory variables, which represents the performances and category of labor disputes, such as transformation and upgrading of industrial structure, nature of industry, enterprise scale, the number of participants and demands of workers in labor conflicts. Trans, the Scope, the Owner, Partic, Demand are taken respectively by T, S, O, P, D, which are as the independent variable items of X i .

Variable to Explain
Styles of labor conflict are the external performance of demands on labor rights. General and common styles include sitting, striking, blocking gate, blocking traffic, banner parading, jumping off a building, rioting, surrounding governmental agencies and petitioning. In statistical analysis, the styles above are classified five classes as "Striking", "Blocking traffic", "Protesting", "Petitioning" and "Jumping off a building". "Strike" contains sittings-in and strikes, "Blocking traffic" contains, blocking the gate of factories and traffic, "Protesting" contains pulling banners to demonstrations, "Petition" contains blockading governmental agencies and petitioning, " Jumping off a building " contains jumping off a building by threats and rioting.
"Trans" includes two cases of "change" and "not change", namely, "normal" and "abnormal". In normal state of the industry, its production has a reasonable increase or decrease, maintains a stable state of the employee's salary, bonus, benefits, vacation, training and social security, has a controllable state of working environment, living conditions and enterprise management system. Those factors can cause labor conflict events under certain conditions, but they have nothing to do with industrial transformation and upgrading. Abnormal state of the industry, such as decreasing sharply in production, stopping production, transferring business scope, replacing equipment by new technology or moving equipment beyond the city, merging enterprise or reorganizing the entities of business operation, the closing of the enterprise, and so on. All abnormal states are directly related to the industrial structure, industrial layout and industrial upgrading. So states of industry are changed into "normal" and "transformation and upgrading".
"Scope" is the degree of assets for industry to transform and upgrade. Industry is a broad concept, it includes many manufacturing industries in which is the most concentrated area of labor conflict. It can be divided into "Heavy industry" and "Light industry". Industry subdivided involving labor conflict, "Heavy industry" mainly includes foundry industry, mechanical and electrical equipment, marine equipment, steel, metallurgy, shipbuilding, chemical industry, rubber industry, etc., "Light industry" mainly includes electronic industry, textile, food, logistics, home, decoration, communication, design, installation, transportation, technology, gardens, printing, electrical appliances, photovoltaic industry, materials, etc. Another special industry is the "unemployment" that includes the retired workers and unemployed workers who recourse the rights and interests left in many years ago. When we classify, if the original enterprise still exists, it can be got statistical belongs of industry; If the original enterprise has early cancelled or consolidated, it will be belonged to "unemployed". "Owner" is a strong relevance between nature of business and transformation and upgrading of manufacturing industry. According to the division of ownership of enterprise assets, forms of enterprises generally has state-owned, collective, private, public-private partnerships, share ownership, invested by Hong Kong, Macao and Taiwan and by foreign investors, and Sino-foreign joint ventures. To be easily analyzed, the enterprise nature is simplified into four forms as "state-owned enterprises", "corporation", "foreign enterprises" and "joint venture". When divided, the state-owned enterprises and private companies is relatively clear, "foreign enterprises" includes Hong Kong, Macao and Taiwan capital and foreign capital, "joint venture" will has public-private joint venture, Sino-foreign joint venture, corporation and other capital forms. The direction and degree of different assets ownership interests pursued is an important cause of labor disputes.
"Partic" is the scale of participants involved labor conflict. It has a high correlation between scale of participants and degree of capital intensive, which reflects the changes of enterprise production. Number of participants is a digital concept. Generally it is divided into three levels with 100 below, 100-1000 and more than 1000 people, which are named as "small", "mass" and "large scale" respectively.
"Demand" is the asks of participants. Different enterprise production and business operation conditions can cause different labor demands. Appeals in labor conflicts involve increasing the salary, filling salary, wages paid on time, bonuses, overtime salary, supplying the social insurance premiums, requiring labor compensation and protesting against the move of enterprise, objecting alteration of enterprise property right, requesting an open and fair restructuring of enterprise, exposing a few management corruption, etc. All demands above are roughly divided "salary dispute", "mal-management", "privatization" three categories.

Data Source
Based on investigating to government bureaus and economic-technical development zones in Yangtze River Delta region, we obtained the records of labor disputes cases happened in Yangtze River Delta region during 2011-2015. According to the time, the sector, the nature of the enterprise, the style and size, the labor disputes, and the labor demands, we got the data recorded in this paper. Due to the differences of statistical standards and the omission of statistics, it exists that statistical data is less than the real number of cases.

Measurement Test and Result Analysis Stationarity Test
In order to avoid the phenomenon of "false return" in Jordi model, it usually should do an unit root test on lnT, lnS, lnO, lnP, and lnD by ADF method. Once passing stationarity test and the first order differential △of each variable, the results is meaningful for regression analysis.
In table 1, each variable R1, R2, R3, R4, R5, T, S, O, P, D passed the stationary test after differentiated by first order. Whether there is a cointegration relationship of unit root each other, the cointegration test is needed.

Cointegration Test
After synthesizing the data all of labor conflicts, we determine the lag period of Jordi model is 1, and associate the autoregressive maximum likelihood estimation method of Johansen vector, test the single integer variables, and get the results in table 2. Note: * * * , * * , * stands for that 1%, 5% and 10% level declined to "non-stationary" null hypothesis respectively.

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Relevance of the Pattern of Labor Disputes and the Transformation of Manufacturing Industry -Based on the Case Analysis of Labor Disputes in Yangtze River Delta Region  In table 3, T, S, O, P, D of the explanation variables represents respectively the transformation and upgrading of industrial structure, industry, enterprise scale, scale of participants and demands of labors, and has a cointegration relationship with explained variable R i (style of strikes, blocking traffic, protests, petitions, and jumping off a building). The co-integration equation with coefficients of various variables are shown in table 3.
As can be seen from table 3, the effect of explanation variable T, S, O, P, D is significant to explained variable R i , with a positive change. It shows that all variables, which are the abnormal changes of production, light industry, private and foreign-funded enterprises, large number of labor, and economic demands of labors during the changes of transformation and upgrading of industrial structure, are main factors to trigger labor disputes.

Opinions
Labor conflicts occur more often in abnormal production changes of manufacturing than in normal. These factors, which are reduction of output, breaking of production, transformation of business scope, replacement of the old and new technology, move of equipment, mergers and reorganization of the enterprise production and business operation entities, shutdown of the enterprise, have played an important role in 71% of occur to the industry conflicts. The recession of economy in China and the world led directly to overcapacity, product backlog, difficulty of capital turnover in the manufacturing of Yangtze River Delta region. Then enterprises have to cut production, to reduce the overtime work, to delay salary and social insurance premium, to transfer production line to other undeveloped areas. According to the law of labor contract, if enterprises fire workers because of outsourcing production, it needs to pay economic compensation to the fired workers. There are some business owners who deliberately illegal default, or even malicious volume guaranty. In the end, naturally, these can arise of mass labor disputes cases with abnormal production.
Labor conflicts occur more often in light industry than in heavy industry. During the year of 2011-2015 there are 372 labor disputes cases occurred in manufacturing of Yangtze River Delta region, of them, 245 cases happened in light industry, accounted for 66% of all; 123 cases in heavy industry, accounted for 33% of all; Only 4 cases of labor disputes was triggered by a retired worker, accounted for 1% of all. Among labor conflicts of light industry, 101 cases happened in textile enterprises (41% of the light industry class), 64 cases in electronics enterprises, 29 cases in household class, 51 cases in others. Obviously, light industry fields are prone to labor disputes cases. We can conclude that there is a high probability of occurring labor disputes involving light assets in manufacturing enterprises.
Labor conflicts occur more often in private enterprises than state-owned companies. During the year of 2011-2015 there are 372 labor disputes cases occurred in manufacturing of Yangtze River Delta region, removal of 59 cases of labor disputes in normal production and operation situation, 313 cases of labor disputes are linked with transformation and upgrading of industry, 228 of them occurred in the field of private enterprises, accounted for more than 72.8%; 72 cases in foreign investment, Hong Kong, Macao and Taiwan, Sino-foreign cooperative joint ventures, only 13 cases in state-owned enterprises. Private enterprises have a sensitive reaction to shut down or transfer their production line to lower-cost regions. In 190 cases of labor disputes by production-cutting, 142 pieces happened in private enterprises, accounted for 74.7% of the all; In the production-halting, it is accounted for 76.6%; In the production-moving, it is accounted for 100%; In the restructuring, it is accounted for 88.9%. Meanwhile, the occurrence rate is 0 in the merger and relocation of labor disputes cases of state-owned enterprises. This shows that state-owned enterprises have the monopoly and get benefit because they may be severely supported by local government and not easily merge and reorganize their assets.
Labor conflicts occur more often in large-scale than in other scales of participants. During the year of 2011-2015 there are 372 labor disputes cases occurred in manufacturing of Yangtze River Delta region, 62 pieces of labor disputes happened by 1-100 people, 296 cases by 100-1000 people,, 14 cases by more than 1000 people, accounted for 17%, 80% and 17% respectively. Clearly, the scale with 100-1000 people are more likely to happen labor disputes than the other scales in the manufacturing industry. The reason is that manufacturing is labor-intensive, or capital-technology intensive, which needs to hire more workers. These mass workers tend to form collection and act on the collective consistency in space, time and interests. 100-1000 people can be employed by the medium-size assets of enterprise, who can collaborate each other in the technological process of mutual sectors. These workers have the same interests when they are coordinated.
Labor conflicts occur more often in interest requests than in other requests of participants. During the year of 2011-2015 there are 372 labor disputes cases occurred in manufacturing of Yangtze River Delta region, among them there are 336 cases of labor conflicts happened by economic appeals than non-economic appeals, which the proportion is 90%. It shows economic appeals are easier resonated the accordant reactions than the non-economic one in labor conflicts; In normal production the demands of workers are more likely to link with salary increases and against strict management; in abnormal production, the demands of workers are more likely to object the pay-back in recessing economy and to require compensations in relocation.
The common features include that the labor conflicts occur more often in abnormal production changes of manufacturing than in normal one, more in light industry than heavy one, more in private enterprises than other ones, more in large-scale enterprises than small-scale ones and more for economic requests of participants than for noneconomic ones.

Single Factor Analysis
The effect of explanation variables with T, S, O, P and D is significant to the explained variable R i . In order to measure the influence of the dominant factors in the explained variables to the explained variable R i , we can find out the main factors to every single variable in the equation and get the relevance of the corresponding numeric (see table 4). Data in the table shows closely correlated each other between R 1 and S 1 , R 2 and T 2 , R 3 and S 1 , P 2 and D 1 , R 4 and all factors, R 5 and T 2 , D 1 respectively.

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Relevance of the Pattern of Labor Disputes and the Transformation of Manufacturing Industry -Based on the Case Analysis of Labor Disputes in Yangtze River Delta Region Note: * * * is closely correlated, * * is highly correlated, * is obviously correlated.
In order to further to explain the relevance of main factors and dependent variables, we can find how these factors influence on the styles of labor disputes by the trend chart of absolute value in 2011-2015.
1, R1 is T, S, O, P, D single factor influence. Strike by 2014 cases continue to increase, the overall decline in 2015 (see chart 2). Light liquidity, private, scale and the influence of wage income was reduced, people hired to strike in the form of labor conflict appears to rise and fall of synchronous change, and abnormal changes in production to strike the influence of form is not synchronous. This suggests that the strike is generally and enterprises to pay wages, salary welfare level is low, too strict enterprise management, enterprise production and living environment, and is not directly related to the transformation and upgrading of industrial structure changes, the strike often appear in the normal production and operation.
2, R2 is T, S, O, P, D single factor influence. Wall road increasing case, 2013 years ago the overall decline in 2014, 2015 and recovery (see figure 3). The transformation and upgrading of industrial structure, private, scale and salary income people hired to reduce the influence of events appear to block road in the form of labor disputes with the rise and fall of synchronous change, and the influence of light liquidity after 2014 is out of sync. This suggests that the road is closely related to the business status of manufacturing, especially the enterprise transformation and upgrading of industry effect is more apparent, and the incidence of plugging road conditions in the field of light industry in the fall. Blocking gate, blocking traffic form the labor disputes occur in abnormal operating conditions, especially the whole national economy downward.   number of labor, labor economy demands the combined impact of rising higher case, is the most prominent form of labor conflicts in 2015.
To be more of this shows that the rights of workers to seek government help the channels to express, hire workers consciousness began work on the rule of law, the rational rights thinking gradually accepted by the rights and interests of sound cable.   6). By the enterprise production abnormal changes, light industry, private and foreign-funded enterprises, large number of labor, labor economy demands the combined impact of threat to jump off a building cases increased significantly. This suggests that the minority group of labor in the fight for their rights in the process of the lack of channels to express, to take the irrationality and illegal forms of unrest to rights, the rule of law, legal education task workers need more extensive and in-depth publicity.

Conclusion and Policy Suggestion
The Main Conclusion 1, the manufacturing characteristic of labor conflict likely to happen. Abnormal changes in the output than the normal production and operation are more likely to happen, the light industry enterprises are more likely to happen, the proportion of industry field of private enterprise than state-owned enterprises are more likely to happen, the mass of the sound line workers are more likely to happen than other size, economic class appeal than non-economic classes are more likely to happen, which is in the manufacturing labor conflict easily in the abnormal changes in production, light industry and private enterprises sector assets; Manufacturing workers scale is mainly involved in labor disputes in 100-1000 level; Manufacturing workers participate in the labor disputes in the appeal is mainly economic, political and social demands.
2, and manufacturing all kinds of labor disputes way correlation is higher. Yangtze river delta region (2011-2015) manufacturing strikes, blocking the road, demonstrations and petitions and threat to jump off a building events is affected by some factors common mass labor disputes and appear, these factors include the transformation and upgrading of industrial structure change and high light industry assets liquidity, the heavy of private and foreign companies, large number of labor participation and the economic interests of the workers are violated; Ways we strike with the enterprise to pay wages, salary welfare level is low, too strict enterprise management, enterprise production and living environment, blocking the road way and the way of demonstration and operating conditions are deteriorating and the enterprise manufacturing industry transformation and upgrading, petitioners way associated with laborer legal awareness and rationality, irrationality and threatening to jump off a building with a handful of labor legal system concept of indifference, are also associated with aspirations channel lack.

Policy Suggestions
Yangtze river delta manufacturing strikes, blocking the road, demonstrations and petitions and threat to jump off a building developed labor conflicts is the social unrest, labor relations tension, hindered economic development, in order to eliminate the labor disputes happen, should do the following several aspects: In accordance with law, protecting the legal rights and interests of labor are not violated. On the one hand against malicious violation laborer rights and interests of the owners. To entrepreneurs intentional or malicious violation behavior of "labor contract law" to the laborer's rights and interests, especially to deliberately withhold workers' wages, wage payment delay,, volume, escaping from social insurance for the staff and workers, arbitrarily dismissed employees, abuse workers living behavior, should be strictly punished by law. On the other hand to punish malicious incitement and organization work of labor conflict events. For spreading rumors and inciting and organize workers take bold, illegal traffic jams, looting, and jumped to his threat, and other key organizers.
Strengthen professional skills training. Transformation and upgrading of industrial structure must bring a certain degree of structural unemployment. This requires enterprises and social organizations to strengthen professional skills training, through the public welfare and directional training, make traditional skill worker get new jobs. Maintain scientific and technological innovation driven not relax. Science and technology innovation is the key to keep new and strong competitiveness, in the manufacturing enterprises should attach great importance to the research and development and the investment of science and technology innovation, attention to talent introduction and training of professional skills and the government fiscal and tax and the cost of financing support for enterprise innovation, establishing science and technology industry support funds and equity funds, the introduction and training of innovative talents for the enterprise to provide social life support, help enterprises to use the Internet, realize the transformation and upgrading of the production and operation of an enterprise.
Build unobstructed channels of laborer aspirations. On the one hand, the government set up a multistage convenient laborer aspirations, set up enterprise employees, trade unions and managers tripartite collective bargaining negotiation mechanism, reform government union town government abuse, labor inspection, labor arbitration and the people's court to strengthen labor disputes disposal and conclude the trial work, folk law are also free to carry out the right-maintaining activity. On the other hand new media supervision and involvement. Social justice comes from the participation of social public and media supervision, the government should allow some letters, weibo and newspaper and magazine objective reporting and follow-up labor conflict, airing, accept public opinion suggestion.
To strengthen the publicity. Labor law is both to, isn't there a privilege. Government labor supervision departments should use a variety of media platforms and factory square, "labor law", "labor contract law" and other legal knowledge propaganda, guide the rational rights of laborer, rational rights, enterprise managers, management system respect the personality of workers, fair competition.