Help Wanted: China Finds Itself With a Labor Shortage

[Rose Siding]

NINGXIANG, China - The pipeline that pours young, eager workers into China's manufacturing juggernaut begins in the country's interior at vocational schools like Hunan Top Software.

So it is here in Ningxiang, a 10-hour drive from the factories on the southern coast, that clues can be found to a problem once thought inconceivable: The world's most populous nation, which has powered its stunning economic rise with a cheap and supposedly bottomless pool of migrant labor, is experiencing shortages of about two million workers in Guangdong and Fujian, the two provinces at the heart of China's export-driven economy.
....
No one thinks China is running out of workers. But young migrant workers coveted by factories are gaining bargaining power and many are choosing to leave the low pay and often miserable conditions in Guangdong. In a nondemocratic China, it is the equivalent of "voting with their feet."

March is one of the most important hiring months for China's factories, yet some analysts believe that the current shortfalls are the beginning of a long-term trend that is already bringing wage pressures and could eventually erode China's position as the world's dominant low-cost producer.

http://nytimes.com/2005/04/03/international/asia/03china.html

[lonelysoul2020]

1. Union

I bet China will get a union before wal-mart gets one.

[Melynn]

3. I think that Wal-Mart was forced to accept a union in China

I believe that Wal-Mart was forced by the Chinese government to have a labor union represent the Wal-Mart store employees in China. The union was a state sanction union but a union just the same.

I could be wrong about this, I'm not 100% certain of the facts. I sure some of our fine union activists here at DU might have more information about this.

[Igel]

6. "state sanctioned union but a union just the same"

Hardly. One kind of union, in theory, represents the workers, and usually gives it a good try. The other kind, also purely in theory, represents the workers ... as the state sees fit.

When you have the same people in control of the unions, economic policy, labor law, and also making sure the balance of trade goes your way ... can you say, "Conflict of interest"?

[notadmblnd]

13. Canada, but it starts with a "C" too..

I haven't heard anything about China, But the Canadians unionized aWal-Mart up there and Wal-Mart threatened to close down.

[BrotherBuzz]

8. LOL, that's a suckers bet...

Wal-Mart Gives in to China's Union Federation

Richard McGregor
The Financial Times, 23 November 2004


Wal-Mart, the world's largest retailer, said on Tuesday it would agree to establish officially-sanctioned unions in its 40-odd Chinese stores, but only if its workers requested that it form one.

Wal-Mart, which has long battled to keep unions out of its stores in the US and around the world, has been under pressure from the All China Federation of Trade Unions, an official organisation, to allow it to establish branches in its stores.

Wal-Mart said in a statement that the company was in full compliance with Chinese law "which states that establishing a union is a voluntary action of associates." Wal-Mart refers to its workers as "associates."

"Currently there are no unions in Wal-Mart China because associates have not requested that one be formed," the statement said. "Should associates request the formation of a union, Wal-Mart China would respect their wishes and honour its obligation under China’s Trade Union Law."

<more>

http://yaleglobal.yale.edu/display.article?id=4920

[newyawker99]

11. Hi lonelysoul2020!!

Welcome to DU!! :toast:

[lonelysoul2020]

18. newyawker99 Thanks for the welcome to DU.

I truly didn't know that wal-mart was unionized in china. The last i herd about the wal-mart union in Canada i herd it was closing so i didn't count that one.

[daleo]

2. China's one-child policy means they won't be low cost labor forever.

They still have plenty of surplus labor force due to urbanization, but that won't last all that much longer. China's demographic profile doesn't fit that of a cheap labor pool in the long run.

[Lisabtrucking]

4. tell them to get a hold of Mexico there are plenty of people willing

to work there.

[notadmblnd]

14. cheap labor can't be found in Mexico either

they're all working here.

[LiberallyInclined]

5. a rising tide doesn't lift all boats-

if the tide is rising in one place- it's receding on the other side of the world...for other countries' standards of living to go up, the ones at the top(e.g. the U.S.) have to go down- not every country can use 25% of the earth's resources.

and as their wages rise- ours will fall, and over time they may all even out somewhere- but lower than where we "started" (WTO-wise).

[Petrushka]

9. Good point! (n/t)

[Deja Q]

7. Was Ningxiang named after Nixon?

[Biology]

10. maybe they'll outsource to the U.S.

[lovuian]

12. Capitalism is in for a real reality shock!!! No cheap labor

its like Marx says the Workers will revolt!!!

[d.l.Green]

16. Time to bring out the secret clones... eom

[NYC]

15. Did we send them too many jobs?

Too many jobs in China, not enough workers?

We have some unemployed workers over here. People didn't think about that when they outsourced jobs, and sent factories overseas.

[obxhead]

17. maybe we are starting to see

the next true global superpower take control.