Monday, April 29, 2013

The Chinese Wage-slave

Chinese workers are slowly and painfully improving their pay and conditions. But that is true only for formal workers. What many fail to note are the perilous conditions of China's temporary production workers and the increased tendency among Chinese factories to use such workers to manufacture the brand-name products that fill your home. Factories supplying Apple and Samsung, for example, make heavy use of temp workers. According to official statistics, temp workers make up 20 percent of China's urban workforce of 300 million, though the proportion in individual factories often tops 50 percent. The average migrant worker's $320 monthly salary in 2011 was actually 43 percent less than the $560 national average, according to government statistics.


The two most common Chinese terms for temp workers are linshigong , literally “short-term workers,” and paiqiangong , “dispatch workers.”. Temp workers in China are primarily recruited and assigned via laowu paiqian gongsi , “labor dispatch companies.” These are similar to staffing agencies. Labor dispatch companies are often the channel through which child workers—under the age of 16 in China—end up in factories. Dispatch companies charge workers $50 to $100 in service fees, so to the company a child worker is simply another source of revenue.

As in the West, temp workers in a Chinese factory do not receive any type of insurance from the factories, leaving them with neither a health care safety net beneath them nor a retirement net ahead. Unlike formal employees, temp workers are often paid less and do not usually receive insurance. If they are injured on the job, they must depend on their own meager savings, those of their economically disadvantaged families, or the benevolence of the factory. If a worker wants to take a job-injury or rights-violation case to court, her legal standing is diminished because she lacks a contract with her employer.

Businesses gain considerable cost-saving benefits by using temp workers in their factories. Temp workers do not sign a contract with the factories, relieving the company of responsibility for providing these workers with the five types of insurance mandated by Chinese law. In a mid-sized factory with 500 temp workers, the company could save tens of thousands of dollars per month in insurance payments alone.

Another long-term benefit for companies is that they do not have to employ veteran workers who might require higher pay. Rather, the company can let temp workers come and go, then hire the next batch of cheap young temps. In cases where workers are injured, the company is less likely to be forced to pay compensation because the worker does not have evidence of a contractual relationship. Finally, factories can skimp on making their facilities more pleasing for workers since the workers are not expected to stay.

Article 68 of Chinese labor law defines non-full-time workers as those employed no more than 24 hours per week and an average of four hours per day, filling a company 's short-term temporary needs. But the reality is that such workers do more overtime than the law permits, lack a contractual relationship with their employers, and are often paid sub-minimum wages. The text of Chinese law is generally pro-labor. But in reality, collusion between local government and business interests—and the oiled gears of bribery—has led to lax law enforcement.

From here

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