Since late 2003, a labour shortage has appeared in southeastern coastal cities in China. To solve the problem, coastal cities in Guangdong, southern China, have increased the local minimum wage level since 2005.
Dongguan City, for example, increased its local monthly minimum wage level from 450 yuan, which was set in 2004, to 574 yuan in 2005. On the other hand, Shenzhen raised the monthly minimum wage outside the special economic zone from 480 yuan to 580 yuan in 2005 and it also increased the monthly minimum wage inside the special economic zone from 610 yuan to 690 yuan. This year, it further puts it up to 700 yuan outside the special economic zone and 810 yuan inside the special economic zone. However, the local governments’ move to increase the minimum wage levels does not help ease the deepening labour shortage.
According to a report in the Economic Information Daily in April, a foreign-invested chemical plant in Dongguan originally planned to hire about 200 to 300 young women workers, but only 50 women applied for jobs there and the factory has been unable to hire new security guards for more than six months.
The Pearl River Delta labour shortage, which first emerged in 2004, still has not been solved. The effect and the loss incurred due to this shortage become more obvious. It is usually the peak season for employment after the Spring Festival (or the Lunar New Year) holidays, but it has been a problem for many companies in Dongguan to hire enough workers and retain their workers to stay on their current jobs. Under such pressure, some ailing businesses are about to close down.
According to the report, workers in manufacturing factories in Dongguan usually work for 10 to 12 hours each day and they only have one day off each week. Frontline workers in the production lines receive a monthly salary of 600 to 700 yuan, which has already included overtime payments and premiums of social security payments. The report also said that only those factories who offer more than 800 yuan a month can hire enough workers.
Sources: Labournews.com.cn (20 April 2006), Xinhuanet (19 April 2006)
5 July 2006
Dongguan City, for example, increased its local monthly minimum wage level from 450 yuan, which was set in 2004, to 574 yuan in 2005. On the other hand, Shenzhen raised the monthly minimum wage outside the special economic zone from 480 yuan to 580 yuan in 2005 and it also increased the monthly minimum wage inside the special economic zone from 610 yuan to 690 yuan. This year, it further puts it up to 700 yuan outside the special economic zone and 810 yuan inside the special economic zone. However, the local governments’ move to increase the minimum wage levels does not help ease the deepening labour shortage.
According to a report in the Economic Information Daily in April, a foreign-invested chemical plant in Dongguan originally planned to hire about 200 to 300 young women workers, but only 50 women applied for jobs there and the factory has been unable to hire new security guards for more than six months.
The Pearl River Delta labour shortage, which first emerged in 2004, still has not been solved. The effect and the loss incurred due to this shortage become more obvious. It is usually the peak season for employment after the Spring Festival (or the Lunar New Year) holidays, but it has been a problem for many companies in Dongguan to hire enough workers and retain their workers to stay on their current jobs. Under such pressure, some ailing businesses are about to close down.
According to the report, workers in manufacturing factories in Dongguan usually work for 10 to 12 hours each day and they only have one day off each week. Frontline workers in the production lines receive a monthly salary of 600 to 700 yuan, which has already included overtime payments and premiums of social security payments. The report also said that only those factories who offer more than 800 yuan a month can hire enough workers.
Sources: Labournews.com.cn (20 April 2006), Xinhuanet (19 April 2006)
5 July 2006