Two examples: Foxconn, Honda Increase Factory Wages in China | 2point6billion.com - Foreign Direct Investment in Asia
Foxconn, the Taiwanese-owned IT giant responsible for making Apple, Dell, Intel, Microsoft, and Motorola products among others, announced today that starting Oct. 1, it would increase wages for assembly-line workers in Shenzhen by nearly 70 percent, up to RMB2,000 (US$293) [~228 €] per month....Japan-based Honda Motors settled a labor dispute on Friday that shut down a significant portion of the automobile manufacturer's production over the last two weeks by agreeing to a wage increase of 24 percent. That would put the starting monthly wage of a new employee at RMB1,910(US$281) [~218.5 €].
That puts these factories' employees wages way above Bulgaria and Romania minimum wages, at more or less the same level as Lithuania and not very far below Latvia, Hungary, Estonia and Poland... (Observatoire des inégalités - In 9 European countries, the minimum wage is under 300 € per month ). "Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
if it spreads to chinese-owned factories, the implications will be far greater.
It might be te case:
Foxconn, Honda Increase Factory Wages in China | 2point6billion.com - Foreign Direct Investment in Asia
These wage raises come in addition to minimum wage increases being implemented by provincial level governments across China this year ranging from 5 percent in Hunan Province to 27 percent in Ningxia Province. Analysts with Morgan Stanley put the average minimum wage increase in China this year at 17 percent based on the 11 provinces that have enacted such measures. "It is widely expected that many other provinces will soon follow suit," they said. This may be the beginning of the end for China's infamous army of cheap labor.
This may be the beginning of the end for China's infamous army of cheap labor.
I would expect that the significant increase in wages by Foxcon, etc. would exert some significant upward pressure on wages in the Pearl River manufacturing area, at least over the next year or two. That could be mitigated were China be unable to control internal migration from poorer areas, but I suspect that effect would be limited by the education and training required by high wage Pearl River facilities. As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
that is only for a few very high end manufacturers in China.
Yes, but that's the ones that are in competition with central European countries' manufacturing plants. "Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
