Comments on: Understanding the Chinese overtime dilemma

By: C

Wed, 18 Jun 2008 10:54:07 +0000

From these comments posted above, I get the sense that many people are in fact anti-China sourcing, which I can understand. What people need to understand is that wages have already gone up drastically over the past 3 years. From take home wages of around RMB800/month, wages are now at around RMB1400/month, and this is only the beginning. China government has now begun to strictly enforce the 35 hrs/month limit on overtime, and also 200% pay for Saturday, 300% pay for Sunday. Many factories are now being sued by workers for lost pay over the past 2 years – amounting to several millions of dollars per factory. Add on the new labor laws which mandate 90 days of PAID maternity leave, 14 days of spousal holiday every 2 years, and countless other benefits – many companies are in fact being driven out of business. At the beginning of 2008, there were approximately 90000 factories in the Pear River Delta area, of which 15000 have already closed up shop. With the rate which costs are rising, we can see a significant increase in bankruptcies and relocation. Instead of being able to make a decent wage, it may actually be very soon where a lot of people will become unemployed again and go back to the farms making RMB200/month. So in fact, this “dilemma” is really a “dilemma”. I think many people need to stop watching CNN and actually visit/live with the developing countries people first before they make their judgments.

By: r

Wed, 27 Feb 2008 15:12:27 +0000

The fact that Chinese workers “quit and go to another manufacturer that doesn’t follow the law (overtime regulation)” does not appear to me as a “dilemma.” It is not a dilemma for workers. Workers can not earn enough wage with the amount of time prescribed under law, therefore they have to find a place to work overtime. Nor is it a dilemma for manufacturers–what they need to do is to raise the hourly wage. Manufacturers will surely get workers stay and do their job. Only when breaking law becomes a choice for manufacturers, it appears as a “dilemma”. What a “dilemma!”

By: Bud Natali

Bud Natali — Fri, 22 Feb 2008 21:06:42 +0000

You are looking in the wrong place, as is the EICC and CSR effort. The issue is not with compliance with the law or guideline or standard. Compliance is a relative veneer. The issue is the marginal propensity to get tired. After x number of hours all inputs of labor productivity curve downward. Like a cliff. Instead, boost the return on the human asset by harvesting their innovation and energy. Stay at the peak of the productivity and innovation curve – it produces much more than tired hands and heads. The peripheral result is a more talented resource base and an emerging market.

By: Diane

Diane — Fri, 22 Feb 2008 20:31:16 +0000

Agree this is a dilemma but an easy one to resolve: PAY THE WORKERS a living wage then they will not have to work 100+ hours over-time/month. This would also begin to raise the standard of living and create new markets. People need money to buy things! And this is now a global issue….spread the wealth…it’s all connected.