Strikes threaten China's status as the factory of the world

News in pictures
News in pictures
On Facebook
From the blogs

Roy Hodgson for England: A club of one

To argue against Harry Redknapp for England is akin to arguing in favour of bankers bonuses. While s...

Time for a reality check on the Sri Lankan civil war

Sri Lanka, much like Britain, has side-lined accountability long enough.

Children Of Alcoholics week: One million children may just be the tip of the iceberg

Children Of Alcoholics week starts today. So, what are the aims for Nacoa during this important week...

Review of Being Human: ‘Being Human 1955’

Following on from an episode tinged with tragedy, this week lifted the mood with something lighter.

Suggested Topics

A rash of new strikes in China, in defiance of the country's long-standing aversion to industrial action, is posing an unprecedented threat to its reputation as an exporting powerhouse.

Chinese workers have long been banned from forming labour unions independent of the Communist Party. But yesterday, after one strike by employees of a Toyota supplier earlier this week, another group in the city of Tianjin took industrial action over wages.

In the southern city of Guangdong, meanwhile, negotiations between management and labour at a Honda manufacturing plant yielded little progress, raising the likelihood of strikes to secure a new pay deal. And in Chongqing city, workers at the Chongqing Brewery staged a strike that reportedly ended yesterday, according to the Danish brewery Carlsberg, which part-owns the brewery.

The government has been drawn into urgent attempts to placate angry workers, lest the strikes spin into a broader threat to economic stability.

Although reporting on the strikes in the Chinese media has been kept to a minimum, there has been discussion on the impact of rising wages, including an editorial in the People's Daily, the main government organ.

"In many developing countries with a rising economy, simultaneously we have seen a wave of rising salaries. Manual workers living at the bottom of society are more and more eager to get their share of their country's growing GDP," ran the commentary. "The challenge is to preserve the advantages of cheap labour and at the same time preserve the delicate balance between corporate profits and social harmony." Premier Wen Jiabao has also called for better treatment of workers.

The strikes at the Toyoda Gosei factory in Tianjin, which began on Thursday, drew the attention of police. A video obtained by the Reuters news agency showed workers in scuffles with police officers as others screamed: "The police are coming!" Employees at the Honda factory in Guangdong, meanwhile, were still weighing up the benefits of a strike after a promised rise in base wages fell far short of expectations. Under the new deal, base monthly pay would be raised about 200 yuan to 1,139 yuan (around £112).

Among people on the street, there is support for the workers' actions. One university teacher surnamed Ma said he thought the strikes were a good thing.

"Many Western countries have strikes from time to time. It is ordinary," he said.

"Chinese workers have been very low-paid for a long time. There are many rich people in China nowadays. They enjoy fabulous houses and get money easily. But there are also many poor people, working hard, earn very little."

China is wrestling with the implications of rising wages. The country's new prosperity is built on cheap labour, and the transition to the next stage of development could prove destabilising. Some companies are already moving to Vietnam and Cambodia. While wages in China account for only five per cent of the cost of manufacturing, other costs are also on the rise, such as electricity and water.

For decades, the country's army of tens of millions of migrant workers, by some estimates nearly 10 per cent of the total Chinese population, have formed the backbone of China's economic strength.

But rising prices have caused discontent. A recent spate of suicides at the Foxconn plant in Shenzhen, southern China, drew international attention to the working conditions found in some Chinese factories, and forced the management to double wages to stave off even more bad publicity, which would have affected the plant's fortunes. And just as in the late 19th century in Britain and America, workers are looking around at the rising wealth of the ruling classes and saying they want a piece.

"Yes, China has developed super fast. But many people still have to worry about so many things, health care, children's education and employment," said a telecoms company employee named Xin Junjie.

"I feel pity for our country's workers. They are good and hard-working people. To strike means they feel they have no way out."

Independent Comment
blog comments powered by Disqus

Day In a Page

Apple admits it has a human rights problem

Apple admits it has a human rights problem

After years of complaints and workers' suicides in China the technology giant faces up to the human cost of its gadgets
Peter Moore: 'I feel guilty I'm the only one alive'

Peter Moore interview

'I feel guilty I'm the only one alive'
Sellafield faces nuclear option as overspending threatens plant's future

Sellafield faces nuclear option

Overspending threatens plant's future
Israel blames Iran for embassy bomb attacks

Israel blames Iran for embassy bomb attacks

Tehran rejects Netanyahu's 'lies' after diplomats in India and Georgia targeted
Former manager enjoying Apoel crack at the big time

Tommy Cassidy interview

Former manager enjoying Apoel crack at the big time
James Lawton: Patience may not be a virtue this time, Roman – Andre Villas-Boas looks all at sea

James Lawton: AVB looks all at sea

Abramovich's visits to training reinforce the idea of a coach feeling pressure from above and below
The 10 Best sledges

The 10 Best sledges

Not all of them require snow...
Procrastination: Not now – I'm busy

Procrastination: Not now – I'm busy

Confronting the real reasons for puttting things off can help us beat it
Fun in the sunset years

Fun in the sunset years

A new movie follows retirees moving to India for low-cost care and a culture of respect for the elderly. For many Britons, it's already a reality
Picture preview: Lucian Freud drawings

Lucian Freud drawings

Picture preview
Silent revolution at the Baftas as the French take top awards

Silent revolution at the Baftas

The Artist wins in seven categories, with Meryl Streep the other big success story
Whitney Houston: The diva who had – and lost – it all

The diva who had – and lost – it all

Nick Hasted charts the highs and lows of Whitney Houston's life
How Picasso won over (some of) the British

How Picasso won over (some of) the British

Winston Churchill and Evelyn Waugh hated his work, but Picasso provided inspiration for a whole generation of UK artists
Topshop: A Decade Of Design

Topshop: A Decade Of Design

When London Fashion Week starts on Friday, Topshop will celebrate 10 years backing its brightest young stars
John Prescott: 'My wife thought I'd just retire, but I'm not a slippers man'

'My wife thought I'd just retire, but I'm not a slippers man'

At 73, John Prescott isn't mellowing. In fact he's taking a shot at becoming a police commissioner