We've heard about the rising wages in China's industrial regions and its negative impact on the nation's competitive advantage as a manufacturing base. The labor contract law introduced last year also is believed to be elevating labor cost by mandating worker benefits, for one. So how much really does it cost now to hire an injection press operator?
Certainly the location matters. In Zhejiang province - one of the richest regions on the east coast -- some injection workers are paid a mere 4.3 yuan ($0.63) per hour, according to an investigative report from the Zhejiang Workers' Daily. The employer, Ping Xing Electronic Co. Ltd. in Leqing city, also pays an extra 30 yuan ($4.38) monthly allowance if the worker goes to work for no less than 28 days in that month. Moreover, the president of the local workers' union admitted that most factories in Hongqiao Township have longer than legal working hours. Many don't provide benefits or written contracts. "Only a few large companies have relatively proper practices."If the sample is still too small, let's go to the popular job hunting sites. When I searched for injection press operator positions on www.zhaopin.com, a Chinese equivalent of www.monster.com, these results popped up (city, company, monthly wage):• Suzhou, China Shuheng Pipe Clamp Manufacturing Co. Ltd., 1,000-2,000 yuan (US$146-293)
• Chengdu, Push Medical Plastics Packaging Co. Ltd., 1,000-2,000 yuan (US$146-293)
• Changchun, Joyson Automotive Components Co. Ltd., 1,000-2,000 yuan (US$146-293) As a matter of the fact, the smaller molding shops that don't recruit through online ads pay even less.I don't agree with notion that the decline of foreign investment means China is losing its competitiveness against other low-cost manufacturing locations. China's slowdown is a natural response to the global adjustment of over-consumption and overproduction. The abundance of labor supply during a downturn keeps wages even lower.I do feel bad for the workers. The labor contract law gave them a good opportunity to secure better pay, working terms and benefits, but the global recession disrupted the government's plans to upgrade the economy. Now, where is China going?
