Government Intervention Mechanism Of Labor Relations In The Corporate M & A Process

With trade globalization and fast growth of China economy, the amount of Mergers and Acquisitions cases between international enterprise and domestic corporations shows the rising tendency in several past years. As one of the most important channels for corporations to attain external competition advantage and allocate social resources effectively, M&A could help company expand rapidly , recede the market, barriers for entrance and quit, enhance resource allocation efficiency and improve competency itself.M&A is not only the reform and transfer of assets and debts, but the transformation of proprietorship and managerial authority, as well as labor relation. Lots of companies over pursue its economic performance maximization and ignore towards the importance of labor relation, which affected the rights and interests of employees. The disputes on labor relation and groups' conflicts had increased quickly in recent years, and which turned to be one of key factors to identify the success of a M&A.Government plays a key role in the labor relation management, and implements the intervention mechanism to protect the rights of employees while considering the corporations' managerial authority, in order to build a smoothly and harmonious labor relationship and achieve a historical task for building a harmonious society. Combining with the relative labor laws and practical cases, the writer analyzes the government' s intervention mechanism on labor relationship in the period of M&A, points out the problems of practical operation and further proposes some advice on government' s intervention mechanism.