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The New York Times: Chinese multinationals anxious angry workers a raiseUpdate: 2011-06-05

 "New York Times," June 1, 2011 article: Chinese foreign emergency workers a wage lit
Reporter: Kyrgyz • Bradsher (KEITH BRADSHER)
Tangshan, China, Hongmei garment factories, workers are processing down jacket
This year, the once low-wage Asian neighbors China and its rapid rise in wages, while workers in the region to benefit from. Western retailers as trading companies and wage increases and cost increases facing European and American consumers will soon feel the commodity price increases.
Hong Kong's Li & Fung Group is the largest U.S. retailer for the supply of a commodity trading company in China, the company's chief executive Rockowitz (BRUCE ROCKOWITZ) Tuesday speech, said that compared to last year, the first 5 months this year, the company's goods costs rose an average of 15%. Other consumer goods companies have also suffered the same level and even greater costs rise.
Recently these days, flew to Vietnam, Bangladesh, Indonesia and other low-wage Asian countries on the crowded flight managers, they are trying to find an alternative to double-digit growth in China, the wage countries. But these countries are to follow China's wages rise quickly, even more than China, coupled with soaring global commodity prices, making the business people have little option other places.
Last year, the minimum wage in Bangladesh rose by 87%, even if it is also the country's efforts to find enough workers to meet increasing orders. "Everywhere you can see the 'recruitment' sign," Arnie Suha (Annisul Huq) said that he is a large garment factory in Bangladesh Chairman of the Board.
May 19 this year, the U.S. clothing brand Gap unexpectedly announced that, due to supplier costs rose 20%, corporate profits this year will be affected by this decline, resulting in the company's share price diving 17% in the next day. The luxury handbag manufacturer Coach also announced in January, will gradually reduce its dependence on suppliers in China, four years will be Chinese-made products from 80% to now less than half, and the production lines to Vietnam and India.
However, wages in Vietnam with China's rise as fast or even faster, and India for large enterprises, there are still many problems. Mr. Rockowitz said India's infrastructure, such as roads and ports it is "too bad", there are labor issues and government regulation, which also makes it difficult to operate in India, to accommodate tens of thousands of Chinese workers in enterprises.
China's production costs, coupled with no other alternative country, "you have the best time prices," Bennett • Modal said he Cassin clothing design company in Manhattan's chairman. The company last year, cotton and fur garments rose 25% to 35%.
Cassin company began test production in Guatemala, and has made some achievements.Mr. Mo Daier said many garment factories is still very alert, do not dare to purchase from outside of China. "Everyone was worried about quality, you spent so much time to train in a factory to meet the standards of the details."
But only 1,400 people in Guatemala, with the Chinese city of Guangzhou, Shenzhen or similar population size.
Mr. Rockowitz said that now, thanks to the Internet, workers in developing countries through the Facebook social media to understand that wages elsewhere, increasing the pressure for wage rises.
Li & Fung 4% of U.S. retailers sourcing from China almost all kinds of consumer goods. However, electronic products is an exception, which by Apple directly imported into the United States.
Yue Man Lok and other executives predicted that the next 5 years, concentrated in the southeastern coastal provinces of processing enterprises will gradually spread throughout the country. Workers are increasingly unwilling to train, the car takes 3 days, from the inland provinces to the coastal factories, especially in China's domestic consumption growth also many employment opportunities in the Mainland creativity.
Even with the recent opening of the high-speed rail can reduce 80% of the maximum travel time, which does not allow migrant workers flow recovery. "They do not have to set foot on the 1,000 km journey to the coastal enterprises, incredible coastal enterprises have been a shortage of migrant workers," Far Eastern Group Chairman Douglas Hsu said Taiwan.
Wages in inland provinces than coastal provinces and even increase, progressively closer to the coastal export zones with high-wage gap.
There is another reason many companies to stay in China, where sales growth of their business the fastest growing countries. "If the market in China, in fact, many products in the market already, and it is not much motivation to leave," a market research firm Shanghai GCIS senior partner Charles • Oliver (Charles Oliver) said.
China has become the world's largest market for many products, such as automobiles and steel. Production in China and sold in China will allow these companies to avoid facing anti-dumping and other Chinese export restrictions. Production enterprises in China in RMB, which also allows these companies to avoid losses caused by currency volatility.
Wage growth, currency appreciation, all this makes a number of Asian countries to reduce the attractiveness of high value-added industries such as automobile manufacturing. But few people have mentioned the relative concentration of manufacturing workers who transfer to the United States or Europe.

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