Friday, April 27, 2012

Workers' struggle takes ominous turn in China

The Guardian is reporting that workers at Apple's biggest contractor in China, Foxconn, are threatening to jump off their factory roofs if management doesn't make good on assurances to improve wages and working conditions.

That revelation came as a nasty shock to the think tank here at Falling Downs. Not that long ago China's union activists were making headlines and inspiring workers around the world by throwing factory managers from the roof.

Now they're threatening to throw themselves from the roof?

Chinese workers have made gigantic gains over the past few years. In the past year alone factory wages have gone up an average of 20%. As their wages spiral up and American wages continue to stagnate, it's estimated that China and the US will reach wage parity within a few years.

After that the Chinese workers will be leading the way in establishing the benchmarks in labor contracts. However, I don't believe this new bargaining tactic will take hold in America.

Can you imagine the response if the UAW bargaining team walks into a meeting with Ford or GM and gives 48 hour notice that they're all going to jump from the plant roof if they can't reach an agreement?

That's not going to fly here.

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