There are many reasons why private enterprises are unwilling to form trade unions.
First of all, private enterprises often pursue profit maximization, and the establishment of trade unions may increase costs, such as paying union membership fees and providing better welfare benefits. These extra expenses and obligations may adversely affect the profitability of enterprises, so some business owners choose not to form trade unions.
Secondly, private enterprises usually have greater flexibility and autonomy, which enables business owners to formulate and adjust labor policies more freely. After the establishment of trade unions, they will negotiate with business owners on behalf of employees and demand higher wages and better welfare benefits, which may limit the autonomy and flexibility of business owners.
In addition, private enterprises are usually small in scale and have limited employees, and may not have enough manpower and resources to manage and support the operation of trade unions. It takes a certain amount of time and energy to organize members, handle disputes and negotiate, which may increase the management burden of small enterprises. Some private business owners may worry that the existence of trade unions will lead to tension between labor and capital, and may even lead to strikes, lawsuits and other adverse events, which will have a negative impact on the image and reputation of enterprises.
To sum up, private enterprises are reluctant to set up trade unions mainly because of economic interests, autonomy and management burden. However, this does not mean that private enterprises do not care about the rights and interests of employees, and many enterprises will protect the interests and welfare of employees in other ways.
Legal basis:
Company Law of the People's Republic of China
Article 18
The employees of the Company organize trade unions and carry out trade union activities in accordance with the Trade Union Law of People's Republic of China (PRC) to safeguard the legitimate rights and interests of employees. The company shall provide necessary conditions for the activities of the trade union. On behalf of employees, the trade union of the company signs collective contracts with the company on matters such as labor remuneration, working hours, welfare, insurance and labor safety and health.