The Labor Subcontracting And Its Bargaining Mechanism

In recent years, with the considerable development of the construction industry, there are also many problems such as the poor construction quality, lack of market standards, the extensive production method, and the low technical level, and so on. As a result of the separation between management layer and service layer in the construction industry, various problems are of universal existence in labor subcontracting level. The second-level construction market, namely the specialized subcontracting and labor subcontracting market, was not perfect, which causes the confusion of backdoor dealings of it. This results in the poor construction quality and the unsafe work conditions and has bad affects on the health development of the construction industry.For the construction general contract enterprise, it is a difficult and complex task to well manage so many labor subcontractors. If this work can be better completed, the economic interest of the company will be improved, so as to the social efficiency. Then it could make the company develop healthily.Otherwise, it will have the bad impact on the company, damaging the company's economic efficiency.The paper used some theories, such as the new classical economics theory, inframarginal analysis and game theory, concentrating in the leading clue of bargaining mechanism of the labor subcontracting. The basic theoretical analysis and the efficiency analysis is conducted by the method of combining quantitative analysis with qualitative analysis. The contents of this paper could be summarised as follows:First of all, based on the fully analysis and reference of documents in labor subcontracting at home and abroad, especially those in bargaining mechanism of the labor subcontracting, the paper has analyzed the general theory of the labor subcontracting, presenting the reason for doing so and its classification. It also has compared the difference between labor subcontracting and the specialized subcontracting, and elaborated the labor subcontracting mechanism as well as all relationships in such an activity. Then, the paper presents the necessity of conducting labor subcontracting activities by establishing an infra-marginal analysis model, and it also sits up an infra-marginal analysis model for the bargaining mechanism of it.Furthermore, the paper establishes and discusses the game model between the construction company and the labor service company, as well as between the construction company and the owner.Then, it takes the project constructed by China Railway 16TH Group Co., Lid as the typical case to analyze and research the labor subcontracting process during the construction procedure.Finally, some useful and practical measurements and policies are recommended in the government, construction company and labor service company's prospects respectively.