Breaking Free: A European Journey's Insight
20 April 2025 · Uncategorized ·
Source: · https://new.qq.com/rain/a/20250420A02LIR00
Recently, while conducting research trips across Europe, I observed a fierce competition between JD.com (京东) and Meituan (美团), two major Chinese companies, regarding the provision of social insurance for their delivery workers. This rivalry has escalated to accusations from each company that the other is failing to fulfill promises concerning worker benefits.
In February this year, JD began emphasizing its commitment to fully covering 'five ins and one fund' (五险一金) for all riders under full-time contracts. In response, Meituan claimed it was among the first companies to collaborate with China’s Ministry of Human Resources and Social Security on social insurance pilot programs. JD subsequently announced an increase in the number of employees covered by these benefits.
This competition extends beyond worker welfare into other business areas such as meal delivery versus express delivery; each company attempts to mimic its competitor's strategies while incorporating unique elements.
From a commercial perspective, this rivalry reflects both companies’ efforts to diversify and expand their market share. JD aims to leverage its logistics capabilities for food deliveries in pursuit of secondary growth opportunities, whereas Meituan seeks to broaden into areas like express delivery by utilizing the world’s largest rider fleet.
To publicly highlight these initiatives, they have promoted themselves as prioritizing worker welfare while simultaneously marketing their services more broadly. This dual strategy enhances public perception and effectively promotes business expansion.
However, critics argue that such actions may be a facade masking a lack of genuine concern for worker rights and well-being, questioning why companies did not implement comprehensive benefits before launching extensive promotional campaigns.
In reality, both JD and Meituan face challenges in implementing full social insurance coverage due to their large workforce sizes and the complexities inherent in logistics operations. For example, while JD claims it has covered 10,000 full-time workers with 'five ins and one fund,' only a small fraction of its total delivery force currently benefits from this scheme.
Furthermore, some companies continue exploiting internal competition among employees to maximize productivity at the expense of worker welfare—a practice that exacerbates existing issues in industries like automotive manufacturing where poor working conditions persist despite global awareness campaigns aimed at improving labor standards.
To effectively address these problems and stimulate domestic consumption positively, businesses must not only improve workers’ benefits but also cultivate a more balanced economic environment that encourages fair competition rather than fostering unhealthy internal rivalries. The European model of 'inverting the vicious cycle' by prioritizing worker rights over corporate interests offers valuable insights into achieving this goal.
In Europe, strict labor laws protect employees and penalize companies for excessive working hours or inadequate rest periods. Workers enjoy greater autonomy with minimal pressure to exceed legal limits established by these regulations. Consequently, employers must ensure compliance under penalty of fines and reputational damage.
While this approach ensures a better work-life balance for employees, it also places significant responsibilities on business owners who need to manage operations efficiently while adhering strictly to labor laws—a stark contrast with prevailing practices in many parts of China where workers often endure long hours under intense pressure without adequate compensation or support systems.
In February this year, JD began emphasizing its commitment to fully covering 'five ins and one fund' (五险一金) for all riders under full-time contracts. In response, Meituan claimed it was among the first companies to collaborate with China’s Ministry of Human Resources and Social Security on social insurance pilot programs. JD subsequently announced an increase in the number of employees covered by these benefits.
This competition extends beyond worker welfare into other business areas such as meal delivery versus express delivery; each company attempts to mimic its competitor's strategies while incorporating unique elements.
From a commercial perspective, this rivalry reflects both companies’ efforts to diversify and expand their market share. JD aims to leverage its logistics capabilities for food deliveries in pursuit of secondary growth opportunities, whereas Meituan seeks to broaden into areas like express delivery by utilizing the world’s largest rider fleet.
To publicly highlight these initiatives, they have promoted themselves as prioritizing worker welfare while simultaneously marketing their services more broadly. This dual strategy enhances public perception and effectively promotes business expansion.
However, critics argue that such actions may be a facade masking a lack of genuine concern for worker rights and well-being, questioning why companies did not implement comprehensive benefits before launching extensive promotional campaigns.
In reality, both JD and Meituan face challenges in implementing full social insurance coverage due to their large workforce sizes and the complexities inherent in logistics operations. For example, while JD claims it has covered 10,000 full-time workers with 'five ins and one fund,' only a small fraction of its total delivery force currently benefits from this scheme.
Furthermore, some companies continue exploiting internal competition among employees to maximize productivity at the expense of worker welfare—a practice that exacerbates existing issues in industries like automotive manufacturing where poor working conditions persist despite global awareness campaigns aimed at improving labor standards.
To effectively address these problems and stimulate domestic consumption positively, businesses must not only improve workers’ benefits but also cultivate a more balanced economic environment that encourages fair competition rather than fostering unhealthy internal rivalries. The European model of 'inverting the vicious cycle' by prioritizing worker rights over corporate interests offers valuable insights into achieving this goal.
In Europe, strict labor laws protect employees and penalize companies for excessive working hours or inadequate rest periods. Workers enjoy greater autonomy with minimal pressure to exceed legal limits established by these regulations. Consequently, employers must ensure compliance under penalty of fines and reputational damage.
While this approach ensures a better work-life balance for employees, it also places significant responsibilities on business owners who need to manage operations efficiently while adhering strictly to labor laws—a stark contrast with prevailing practices in many parts of China where workers often endure long hours under intense pressure without adequate compensation or support systems.