Employing units and the employees of the unit shall, through collective negotiation, sign a collective written agreement on matters such as labor remuneration, working hours, rest and vacation insurance and benefits according to laws and other regulations. At present, the collective wage negotiation system has begun to be widely promoted within the domestic hardware industry.

It is understood that the hardware industry collective wage negotiations began in the hardware tool industry in Lin'an. Lin’an, as an important clustering belt for China’s hardware and tools industry, has implemented the second round of salary increases since July 2010, and since July 2010, not only has the wages of employees been improved, but also the scope for participating in consultations is also growing.

After the Lin’an tool industry, including hardware industrial belts such as Wendeng Hardware, Ningbo Fasteners, and Yongnian Standard Parts, companies have led the government to implement collective wage negotiations on a wide scale and focused on establishing a normal salary growth mechanism through corporate negotiations. The industry consultation focused on the formulation of uniform standards for working hours and wages, and effectively solved the problem of wage negotiation and management of small-scale non-public enterprises with family-style and decentralized forms.

Xiao Bian analyzed that the implementation and implementation of the system has a series of profound social and economic backgrounds. After the financial crisis, the economy stabilized and recovered, but the Pearl River Delta, the Yangtze River Delta and other regions have experienced "labor shortage." How to retain employees and continuously create a steady stream of benefits for the company and even the regional economy has become a real issue for the authorities. The system of collective wage negotiation has, to a certain extent, promoted the "cooperation" of employees, enterprises, and regional governments. While improving the treatment of employees, it has also ensured the company's economic income through scientific management methods.

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