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Old 18-09-13   #1
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Labor Shortages in China - Students Being Called Back to Factories






Notebook ODMs, smartphone component makers facing labor shortages in China

Some of the Taiwanees notebook ODMs, component makers are supposedly facing labor shortages in their factories established in China. According to a report in Digitimes, the two most-affected companies are Foxconn Electronics and Pegatron - two original equipment manufacturers of Apple products. Quoting below the original news piece,

There are labor shortages in Shanghai, eastern China, as well as Chongqing and Chengdu Cities, western China, the sources indicated. Two main reasons behind the shortages are that many workers have gone home early for the October holidays and that student workers have returned to school since early September, the sources explained.

To solve the labor shortages, the factories have sought assistance from manpower brokerage companies to recruit non-student workers, as well as requested schools send student workers by arrangement with local governments, the sources said. In particular, Taiwan-based Foxconn Electronics and Pegatron, two OEMs of Apple products, have seen their factories in China suffer insufficient labor, the sources noted.
What surprised me was the act of companies requesting schools to send the student workers back to factories, with the help of some arrangements with local governments. Isn't that something? When was the last time students/young people were requested to come back to serve someone? Well, I think it was only during times of wars (and probably for Olympics preparations in China - you might want to google it, if you don't know about it).

Now, it's even for putting together some plastic and silicon chips to make electronic toys for grown ups. Sure, this probably wont be forced labor; students may not be in a "come back to work or face punishment" situation, and there might even be some extra rewards to those who do come back. But asking students come back to work to meet market demands for smartphones/tablets seems just sad and weird.

Instances like these are definitely not the first in Asian countries (for example, Foxconn had admitted to breaching Anti Child-labor laws last year, and recently suffered riots in its factories for imposing quality standards required for iPhone 5 which probably coupled with bad treatment of workers), but anyway, these just keep happening one after the other.

Source: Notebook ODMs, component makers suffer labor shortages in China
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Old 18-09-13   #2
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Re: Labor Shortages in China - Students Being Called Back to Factories

The salaries of factory workers in China are soaring. The average salary for a factory worker in Shenzhen (where most electroics are made) is 1,600 yuan (about Rs 16,500) compared to that a average factory worker in India makes about Rs 8000 - not even half. Besides that the Chinese workers get subsidised accommodation, transport, food, electricity and other facilities. Something you can never dream of in India.

@Prash that's a good post but I'm afraid the image you have used is a very old one (2010) and sends the wrong message. I had used it myself in one of my posts several years back, but the exploited Chinese worker is a very rare thing these days. The reality is that Chinese workers are well paid and difficult to find nowadays.

This is why many Chinese entrepreneurs are moving out of China because labour is cheaper elsewhere. For instance many Chinese have opened garment factories in Bangladesh because labour is cheaper there. In India it is generally foolishness to open any factory - better to become a importer then to try making something here.
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Old 18-09-13   #3
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Re: Labor Shortages in China - Students Being Called Back to Factories

Come on !! Vijay..

Chinese Yuan is heavily prejudiced coz it is a fixed value currency and if that is compared with US then the salaries are still so LOW !
this is a deep anguish situation and I don't support this behaviour from the Chinese govt !!
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Originally Posted by vijayninel View Post
The reality is that Chinese workers are well paid and difficult to find nowadays.


---------- Post added at 08:39 PM ---------- Previous post was at 08:36 PM ----------

And more ever !! this is dated 17th September so it is not that old...

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