Submitted by: Himfr Tian

Foxconn implemented in salary after the survival of the so-called “cost advantage” will face great challenges. Foxconn’s past success is built on cheap labor costs based on.

China’s 30 years of reform and opening-up policy, has attracted hundreds of thousands of foreign-funded enterprises to invest in the development, preferential policies and cheap labor, so that foreign companies have been rewarded, to achieve an impressive growth. However, a large number of front-line workers in these enterprises income, and average wage growth rate and price level of growth compared to slow growth or even stagnation.

Press survey found, as well versed in foreign laws and China’s national conditions, although a number of foreign enterprises face in their home country or region can not slack labor rights and trade unions in China have found a “compensation rules of the game”, that is in China, “the minimum wage Standard “The bottom line on the” low-flying principles.”

Example of a company in Shenzhen, Shenzhen, the minimum wage in 1996 was 310 yuan per month in 2008, Shenzhen will raise its minimum wage of 900 yuan, while the wages of ordinary employees of the enterprise is always “stable” to remain in this ” High red lines “on neither offense nor” beyond. “

Shenzhen Municipal Federation of Trade Unions Production and Protection, said Vice Minister Li Wang, investigations revealed that the company provides employees Tounian Xinjin the salary standard is the minimum wage, You Yu enterprise personnel flow rate, many people get finished this year, left the minimum wage the enterprise. “Such acts are legal, but not moral.”

It is this great contrast and the objective existence of low-income workers led to the survival, development of the reality of the state is facing many difficulties, so in some areas to a “business improvement, employees do not appreciate the Government the middle clip,” three-game “cycle.”1994, working in Guangdong Hunan Yongzhou people Zhanghuang Yong said that many companies before the “foul” is not wages, is the employment environment is poor and clearly illegal.

Workers to the labor departments and labor unions to report the complaint is relatively easy. “Now companies are astray, and the basic minimum standards for wages are pressing, forcing workers to rely on overtime to take a lot of” paid. “Standardized management business looks, but the fate of employees has not improved, a lot of cases, no complaints the door. “

This enterprise strong, weak labor workers consultation and negotiation pattern, also makes the grassroots government departments in labor conflicts in two to suffer any humiliation. Some grass-roots agencies to handle labor disputes in the show’s “only GDP” concept does not help to resolve the business and employee conflicts.

In a recent interview with reporters, once seen PRD party secretary of a certain town dealing with labor disputes process “complex” mentality: on the one hand, he admitted that given this well-known foreign wage “really is not high, also in the local business can only be considered medium-level “and continuing to improve, not improved; on the other hand, he repeatedly stressed that this enterprise is the” standard operation “and” the overall employment environment or good, to the welfare of workers is also high, “is the greatest pillar of local economic development “can not beat him to death.”

“The economy booming, but the majority of workers in particular, the rights of migrant workers is in decline; wages appeared to be growing, but the actual earnings of workers are in relative decline. This situation can not continue in any case.” Li Wang says.

Experts believe that the end of “pipe wages” lies in labor-intensive enterprises to strictly urged foreign investors to change the employment system and labor, resulting in a reasonable benefit-sharing mechanisms.

End “pipe wages”, the key lies in the junior local government’s “inaction.” WANG Hongli said, a long time, China’s economic development is faced with abundant supply of labor and capital scarcity situation, some local governments in the process of economic development to form a GDP-oriented and capital supply for the primary task of the Zhi Dao ideas and approaches, forming a habit of accommodating capital, to consider the interests of many enterprises to consider the interests of workers less, taking into account the social costs of government revenue and more pay less, not supervision, can not supervise, do not want to supervise the bad state of mind.

However, deep “tube wage” survival of the soil, the fundamental measure is to promote the advantages of relying solely on the price of labor intensive industries and enterprises accelerate the transformation and upgrading.Currently, the Guangdong provincial government has also clearly stated in the current situation, we must strive to solve the problem, deal with the crisis accelerated the process of becoming a catalyst for economic growth mode transformation, a turning point changes in income distribution pattern, establishing a sound non-public business conflicts and disputes handling mechanism of the new opportunities for co-ordination.

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