State capitalism in construction: Staffing practices and labour relations of Chinese construction firms in Africa

Abstract

A distinct feature of China's involvement in the economic development of African countries in recent years has been the Chinese government's financing and participation in infrastructure construction projects through its state-owned firms. However, there remains limited academic research on labour relations' issues concerning Chinese firms in Africa. This article fills part of the research gap by examining key aspects of labour relations of Chinese construction firms operating in Africa. The article mobilises the notion of space in analysing the role of the state and its agencies in shaping the transnational labour market of construction workers and workplace industrial relations. Drawing on data from 52 interviews with managers, professionals and government officials, this study highlights the interdependence and interconnectedness of the Chinese lead construction firms, subcontractor firms and employment agencies on the one hand, and legislative and representational gaps for the Chinese dispatched workers on the other.

An Evaluation of Project Risk Dynamics in Sino-Africa Public Infrastructure Delivery; A Causal Loop and Interpretive Structural Modelling Approach (ISM-CLD)

“…China has steadily combined the provision of financial and technical aid for the construction of infrastructure in most African countries with business pursuits and interests [7,33]. Unique to this type of partnership is the use of state-owned corporations who come in as private sector investors [34,35], which makes a distinctive representation of Transnational PPPs [36]. These partnerships also place much concern on the sharing of risks between the Chinese corporations and the African contracting authority in the implementation of public infrastructure.…”

The Africa–China engagement: Contemporary developments and directions for future research

“…Shen (2015) finds that Chinese MNEs (private) investments presence in Africa is often attended by a negative "perception" about technological transfer and local development. Indeed, it has been argued that given Chinese companies mainly employ unskilled African labor, there would be limited opportunity for knowledge transfer as there is less scope for knowledge and capacity building programs at the lower end of the skill spectrum in Chinese organizations (Cooke et al, 2018;Jackson, 2014). Also, Ado et al (2017) indicated that, in the context of Africa-China joint ventures (JVs), although Africa's expectation of knowledge transfer is recognized in official agreements, Chinese partners are still reluctant and non-transparent when it comes to sharing their knowledge due to a culture of knowledge confidentiality.…”

“…With regards to the "employment effects", popular discourse has long suggested that Chinese MNEs and construction companies employ workers from China. There are concerns that Chinese firms in Africa expatriate labor from China to occupy employment opportunities that could be of benefit to local workers (Cooke et al, 2018). While there is some evidence of this in some countries and sectors, other research shows that the vast majority of workers employed by Chinese MNEs are locals, while senior management and technical positions are occupied by Chinese nationals (e.g., Brautigam, 2015;Kamoche & Siebers, 2015;Sautman & Hairong, 2015), with the result that Chinese MNEs (private) investments do lead to job creation (Shen, 2015).…”

“…The concerns tend to revolve around wages, work conditions and relations between Chinese employers and African workers. Indeed, Chinese MNEs in Africa are often criticized for relatively poor worker-conditions (Akorsu & Cooke, 2011;Cooke et al, 2018;Jackson, 2014;Kamoche & Siebers, 2015). These include the use of informal and temporary contracts, low salaries, limited welfare entitlement and a disregard of "decent work" as defined by the International Labor Organization.…”

Opening‐up labor mobility? Rising powers' rulemaking in trade agreements

“…In China, the opening up of new markets by large infrastructure projects (construction) and in the extraction industry (mining and natural resources) across Africa, Latin America, Southeast Asia, and Australia by state-owned enterprises (SOEs) and, increasingly, private companies has led to the constitution of important economic interest groups. These have been actively supporting the Ministry of Commerce's (MOFCOM) agenda in achieving greater mobility in particular for CSS (Cooke et al 2018;Interview 54). In addition, some specific professions falling under the IP category, such as chefs and martial arts teachers, have become an export sector in itself (Interviews 7 and 23; see also Tse 2013).…”