aimarraul
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Finding a future for 'Made in China'
* Source: Global Times
* [01:08 May 31 2010]
* Comments
The long line of job seekers outside Foxconn remains, even after another employee of the world's largest OEM factory tried to kill himself, following 10 suicides and two other unsuccessful attempts.
To many who are looking for a job, Foxconn is still an attractive choice. Its brand name and huge workforce mean security and stable payment of wages.
True, the work on the assembly line is mind-numbing, but what assembly line in Shenzhen, the heart of the world's factory, is any different? Going back and toiling on farmland is perhaps the last choice for the younger generation from rural areas.
Half a world away, when consumers read news of the tragedies and think they are but another example of a country without basic labor rights protections, few probably realize that Foxconn is the top OEM factory for Apple and a major manufacturer for other top electronics makers.
When consumers in other parts of the world place an order and expect the latest electronic gadgets to be delivered in the quickest possible fashion, not many have a clue that before a new model is released, it is a nightmare season for assembly line workers at factories like Foxconn. A good deal for a foreign consumer perhaps means another grueling day for factory workers.
Labor organizations are quick to blame working environments and press companies to improve benefits. The working environment in South China's factories is not perfect, granted, but these factories also must struggle to remain profitable and survive in the competitive market.
Under pressure, Hon Hai Precision Industry Co, the parent company of Foxconn, is reportedly set to raise salaries by 20 percent on average for its Chinese mainland employees.
Analysts estimated that the raise may increase the company's quarterly costs by $84 million and could mean a 10-12 percent drop in operating profits.
Big companies like Hon Hai may be able to afford a reasonable wage hike, but for many more factories in southern China, smaller in size and running on the thinnest profit margins, a minor increase in costs could mean going out of business.
The prospect of unemployment perhaps is a much worse outcome to many who depend on humble salaries.
In total, 200 million Chinese farmers have left their homes and sought a better future working in factories. Along the assembly line are millions of individuals, each with a modest dream that deserves to be fulfilled.
We cannot help them simply by pointing a finger at employers or the government.
Those who stay at the low end of the manufacturing chain can only receive squeezed profits.
China is facing a hard choice: improving the welfare of factory workers while providing jobs for the many more young people who will seek work in the coming years.
Meeting the demands of both is the best way to show true care.
* Source: Global Times
* [01:08 May 31 2010]
* Comments
The long line of job seekers outside Foxconn remains, even after another employee of the world's largest OEM factory tried to kill himself, following 10 suicides and two other unsuccessful attempts.
To many who are looking for a job, Foxconn is still an attractive choice. Its brand name and huge workforce mean security and stable payment of wages.
True, the work on the assembly line is mind-numbing, but what assembly line in Shenzhen, the heart of the world's factory, is any different? Going back and toiling on farmland is perhaps the last choice for the younger generation from rural areas.
Half a world away, when consumers read news of the tragedies and think they are but another example of a country without basic labor rights protections, few probably realize that Foxconn is the top OEM factory for Apple and a major manufacturer for other top electronics makers.
When consumers in other parts of the world place an order and expect the latest electronic gadgets to be delivered in the quickest possible fashion, not many have a clue that before a new model is released, it is a nightmare season for assembly line workers at factories like Foxconn. A good deal for a foreign consumer perhaps means another grueling day for factory workers.
Labor organizations are quick to blame working environments and press companies to improve benefits. The working environment in South China's factories is not perfect, granted, but these factories also must struggle to remain profitable and survive in the competitive market.
Under pressure, Hon Hai Precision Industry Co, the parent company of Foxconn, is reportedly set to raise salaries by 20 percent on average for its Chinese mainland employees.
Analysts estimated that the raise may increase the company's quarterly costs by $84 million and could mean a 10-12 percent drop in operating profits.
Big companies like Hon Hai may be able to afford a reasonable wage hike, but for many more factories in southern China, smaller in size and running on the thinnest profit margins, a minor increase in costs could mean going out of business.
The prospect of unemployment perhaps is a much worse outcome to many who depend on humble salaries.
In total, 200 million Chinese farmers have left their homes and sought a better future working in factories. Along the assembly line are millions of individuals, each with a modest dream that deserves to be fulfilled.
We cannot help them simply by pointing a finger at employers or the government.
Those who stay at the low end of the manufacturing chain can only receive squeezed profits.
China is facing a hard choice: improving the welfare of factory workers while providing jobs for the many more young people who will seek work in the coming years.
Meeting the demands of both is the best way to show true care.
