Previous in Forum: High Speed Stamping   Next in Forum: Best Lubricant for Deep Drawing Press in India
Close
Close
Close
10 comments
Rate Comments: Nested
Guru
Engineering Fields - Aerospace Engineering - Member United States - Member - Army Vet in the aviation industry

Join Date: Mar 2008
Location: Bridgewater, Va.
Posts: 2175
Good Answers: 119

China Workers Striking For Higher Pay

06/01/2010 10:39 AM

I've been reading some interesting news reports on Chinese workers striking for higher pay:

Report 1

Report 2

The Chinese government is usually very tight lipped about labor stoppages but still appears to be letting the workers have somewhat of a voice in their own welfare. With that said:

Is cheap Chinese labor starting to dry up? What does this portend for the future of global manufacturing as we know it today? With rising costs in China will first world manufacturers bring their work back home?

I've always contended, as an American, that the quicker we get the standard of living up in China, the better off we will be in the US by stopping the current massive trade imbalances. Presuming, that is, that the labor cost of manufacturing here becomes on par with there, and the transportation costs become more of a factor.

Any thoughts or examples?

Hooker

Register to Reply
Interested in this topic? By joining CR4 you can "subscribe" to
this discussion and receive notification when new comments are added.

Good Answers:

These comments received enough positive votes to make them "good answers".
Power-User

Join Date: Apr 2009
Location: South Africa - Centurion.
Posts: 280
Good Answers: 3
#1

Re: China workers striking for higher pay

06/01/2010 10:58 AM

Maybe it means that we will get flooded by cheap american products in the near future?

__________________
Dreams are the blue print for reality.
Register to Reply
Guru
Hobbies - Fishing - Old Salt Hobbies - CNC - New Member United States - US - Statue of Liberty - New Member

Join Date: Mar 2007
Location: Rosedale, Maryland USA
Posts: 5197
Good Answers: 266
#2
In reply to #1

Re: China workers striking for higher pay

06/01/2010 2:21 PM

You maybe flood by the products but doubt they will be cheap.

What we usually do is find another nation to replace them until they catch on. As it seems the Chinese people have started to.

__________________
Life is not a journey to the grave with the intention of arriving in a pretty, pristine body but rather to come sliding in sideways, all used up and exclaiming, "Wow, what a ride!"
Register to Reply
2
Guru

Join Date: Oct 2008
Location: Deepest Darkest Rutherford Oz
Posts: 951
Good Answers: 145
#3

Re: China workers striking for higher pay

06/01/2010 6:38 PM

Having previously been falsely accused of racism on this forum I shall keep this comment purposely oblique.

It will still be quite some time before "cheap" Chinese labour prices itself out of the market.

There are still lots of other places where manufacturing can go to take advantage of non existent regulations. Where the prevailing "government" would offer (or be happy to have offered to them) incentives for bringing "prosperity" to their corner of the world.

All the while, western governments moan about the skills shortage yet do nothing to postively encourage the education of the next generation of skilled fitters, machinists, technicians or engineers.

__________________
There are two reasons for a man to do a thing, One that sounds good, and the real one...
Register to Reply Good Answer (Score 2)
Guru

Join Date: Oct 2007
Location: Tulare, CA
Posts: 1783
Good Answers: 35
#4

Re: China workers striking for higher pay

06/02/2010 9:28 AM

The strikes are by the more skilled laborers.

Your basic laborers are supplied by the gulags. As long as the inmates are supplying labor needs for many companies in China, we'll have a long time to wait for them to catch up to us in wages.

__________________
Why is there never enough time to do it right the first time but always enough time to do it over?
Register to Reply
Guru
Engineering Fields - Aerospace Engineering - Member United States - Member - Army Vet in the aviation industry

Join Date: Mar 2008
Location: Bridgewater, Va.
Posts: 2175
Good Answers: 119
#5
In reply to #4

Re: China workers striking for higher pay

06/02/2010 10:10 AM

But that's exactly the kind of work we want coming back home, isn't it?

We don't seem to have a lack of unskilled labor...

Well, until they shut down the southern border anyway. (fat chance)

Hooker

Register to Reply
Anonymous Poster
#6

Re: China Workers Striking For Higher Pay

06/02/2010 12:29 PM

Since globalization started gutting American manufacturing... labor history will always repeats itself. At some point laborers realize that the products don't get produced without them. It was easier in our country for labor to organize, but I do think at some point if people think they are being taken advantage of, somebody eventually tries to organize them and get them to realize the power they have. It will, also, eventually happen here with what is considered "cheap" labor, primarily from Mexico.

This is all very unfortunate. The middle class in this country took a big hit when manufacturers decided to replace them with cheap labor. But I know at some point the cheap labor will want a standard of living better than cheap rates provide -- especially if living in this country. Most people like to progress in their lives. For companies to think cheap labor will last forever is naive and tragic, in that, they helped wreck so many American lives only to find that the cheap labor will not be cheap forever.

Register to Reply
Participant

Join Date: Jun 2010
Location: Fort Collins, CO
Posts: 4
#7
In reply to #6

Re: China Workers Striking For Higher Pay

06/02/2010 1:04 PM

I did some work for the Quality Division of a company that supplied parts to a big box store that used to have a slogan "lower prices every day". This customer of theirs came to them multiple times a year to tell them what the new price would be. They went from Mexico to Taiwan to China to Vietnam for outsource manufacturing by the time I worked with them. The combination of higher labor prices as everyone moved along the same path and a consumer expectation that prices should go down over time was painful.

Register to Reply
Guru

Join Date: Oct 2007
Location: Tulare, CA
Posts: 1783
Good Answers: 35
#8
In reply to #6

Re: China Workers Striking For Higher Pay

06/03/2010 9:29 AM

All the laborers in other countries know that people in the United States were getting paid more for the same type of work. However, there is a big difference in cost of living expenses.

In China, for years they were getting paid what they were told they were getting paid. Now that the Government is letting the companies keep some of their profits, that has opened a whole new door. About 10 years ago I had the opportunity to have a speaker from China talk to us. He was one of China's first new millionaires since it became communist, and he made his money through an Amway program called Quikstar.

The people know their companies are making more money and keeping it, since they have become major players in the global economy and commerce so it is only natural they be compensated a little more fairly.

The people in China are not socially repressed like you would think from our media. Yes they've had a couple big incidents but they recreate and do everything we do in their daily lives. For every incident that has taken place over their against their people I can come up with something from here in the USA to match. Their lives aren't much different from ours.

__________________
Why is there never enough time to do it right the first time but always enough time to do it over?
Register to Reply
Participant

Join Date: Jun 2010
Location: Fort Collins, CO
Posts: 4
#9
In reply to #8

Re: China Workers Striking For Higher Pay

06/03/2010 10:47 AM

Absolutely agree. Although my previous post implies it I didn't intend to say that workers where the cheapest labor is (today) are necessarily repressed economically or socially (although many times they are). Because of the cost of living and living conditions, working for an outsource manufacturer can be an attractive position relative to other local options. Also, as you state, as they see what is available to their non-local counterparts their expectations change and wage pressure increases. As friction related to communication, capital movement, consumer goods decreases the time related to changing expectations decreases. Then there is pressure on infrastructure (e.g. roads in Shanghai when lots of people bought cars at once).

Register to Reply
Commentator

Join Date: May 2009
Location: Gosford, Sydney, Australia
Posts: 55
#10

Re: China Workers Striking For Higher Pay

06/16/2010 10:48 PM

If they could only read your post!

Register to Reply
Register to Reply 10 comments

Good Answers:

These comments received enough positive votes to make them "good answers".
Copy to Clipboard

Users who posted comments:

Anonymous Poster (1); Anthony@ALNO (1); Hooker (1); Janissaries (2); ozzb (1); Quobaldt (1); Tobugrynbak (1); VeloDog (2)

Previous in Forum: High Speed Stamping   Next in Forum: Best Lubricant for Deep Drawing Press in India

Advertisement