Posted on 06/19/2006 12:52:10 PM PDT by nypokerface
BEIJING, June 19 (UPI) -- Domestic pressure is driving China to introduce labor law changes that could drive some non-Chinese firms out of the country, a report said.
A bill introducing tough laws that prevent the exploitation of workers, including regulations that exceed even European standards, is heading for the Chinese People's Congress, even as industrial unrest and wage inflation threaten the economy, the Times of London reported Monday.
The proposed law would strengthen safety and workplace inspections, force employers to consult with workers' representatives over significant job cuts and tighten the enforcement of minimum wages that already apply in provinces. It may also reduce the maximum workweek and impose higher pay rates for overtime.
Dr. Keyang Wu, a Chinese relations expert for the British Chambers of Commerce, supports the bill but also warns that China doesn't have "the luxury to put in labor laws that are totally out of reality.
"It cannot be in parallel with Europe. Business is attracted to China not only because of its labor costs but also because of its efficiency. If regulation starts to affect that and flexibility, then companies could turn to India, Pakistan and South East Asia," Wu said.
They can keep adding regulations. They haven't had their first big economic slowdown yet since the big growth started. They would be well served to learn from Japan circa 1991.
What China needs is to punish company owners and local government officials for ripping off the workers and breaching contracts. Too many rural workers would be offered jobs, and half way into the project, they will not receive any pay. The factory owner who under bid for a contract would tell the workers that they will be paid as soon as they help the owner finish the contract so the company can get paid, and in turn the workers will be owed their wages. Most workers comply, but when the contract is filled, and the owner gets his money, he immediately closes the factory and skips town. The workers would complain to the local officials only to discover that some of the officials were paid bribes or were part owners of the factory. Since the officials are Communist Pary members, any protests or criticism by the workers will be put down as sedition against the government. This is where the PRC needs reforms, otherwise they will face violent revolts in the country side. Sounds like seeds for another revolution - 1947 redux????
It would be nice if China crushs their own economy and help promote rebuilding factories in the US or even India!
I saw a documentary on that situation and the way they treated the workers was appalling. They keep many of them in armed dorms and charge them have their pay for room and board. The food was swill so they had to buy other food and the dorms were just concrete cells.
American workers can't compete against slave labor.
Half of China's GDP is bad debt made by their banks. Like Japan in the 1990's, Chinese bankers made loans to financially unsound projects headed by the sons and daughters of Communist officials during the early phases of economic liberalization. No one had the guts to tell them no because of their powerful family ties. Today the banks are stuck with the bad loans. Asia may have modern schools, modern engineers, modern business managers, but all this means nought if they do not practice modern banking practices (invented by Industrial Age Britain and practiced by most of the West). I think China will have social upheaval similar to the 1930's in the 21st Century. China's inability to resolve internal structural weakness had lead to internal strife every 100 years since the fall of the Ming Dynasty in the mid 1600's.
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