China's labour-management system reforms: Breaking the 'three old irons' (1978-1999)

This article systematically examines the fundamental changes that have taken place in China's labor-management system since China embarked on its economic reforms in 1978. The system was, from the 1950s onwards, characterized by what were called the "three old irons," i.e. life-time employment, centrally administered wages, and state-controlled appointment and promotion of managerial staff. This study reviews the degree to which the reform process is breaking these "three old irons" and is arguably replacing them with a "hybrid" human resource management model, albeit with "Chinese characteristics," that reflects the influence of foreign multinational corporations that have invested in China.