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The train is leaving

The best lessons about doing business in China are not necessarily in books, but rather in the fast-changing real life in that country.

I was at the train station in Shanghai with two large suitcases. Since I often encounter escalators in public places that are shut down, maybe to save energy, I felt that just to get myself and my luggage onto the train in time -- with thousands of other passengers - could be a challenge.

So I found help -- professionals who move luggage from the waiting rooms onto the train. They are called the Little Red Hats, for their uniform consists of highly recognizable red hats and vests.

The worker came, loaded my suitcases onto a cart, and asked me to pay the fee. It was 6 yuan per piece, less than a dollar, regardless of the size or weight of the luggage.

After I finished paying at the counter, the worker started walking towards the elevator. He looked upset. I asked if everything was OK. He replied with silence.

Oh well, I thought to myself, just another disgruntled worker. Then he swiped his card to open the elevator, and said quietly: "We get charged every time we use the elevator." It took me a few seconds to realize that he was probably unhappy with the business from me.

His cost to use the elevator for each job is about the same, whether it's for one bag or a cart full of 6-8 bags.

Although tips are not required in China, I slid him a five-yuan bill. Then he started talking.

"During the World Expo, we are told to serve only one customer at a time, so we don't get to use the maximum capacity of the carts." He makes 1,400 yuan (US$205) a month, which is about the monthly rent of a one-bed apartment in the city.

He seemed unhappy with his line of work. The big problem with his company, he said, is that only 25 out of the 70 employees are actual laborers who earn that money.

"Everyone else is in the management, not making money. That's why I get paid so little at the end of the day."

But he was quick to acknowledge the value of the overstaffed management -- these people have good connections with the state-owned railway system. "There's no way for someone without strong connections to compete in this business," he explained, "If the railway company didn't like you, they could set all kinds of obstacles."

The train arrived at the station. He quickly put my luggage in place and left to find the next customer.

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