Faced with layoffs and wage cuts as falling demand in the West hits the country’s vast manufacturing sector, the workers who have powered China’s breakneck growth are refusing to go quietly.
Over the past month, thousands of factory workers in China’s southern manufacturing heartlands have wrested concessions from employers facing shrinking exports and rising costs in a wave of labor unrest.
In Shenzhen, workers recently gathered at the office of labor rights organization Little Bird to debate a possible strike at a factory that employs them to demand better overtime pay and compensation.
“We have never experienced this situation. We want to learn the different methods for protecting our rights,” said Ran Lin, 30, who spends 11 hours a day, six days a week testing thousands of circuit boards on an assembly line.
Ran, who supplements his 2,000 yuan (US$315) monthly wage by working overtime at the Hong Kong-invested Dongguan Yong Jie Electronics Co Ltd factory, said the company had reduced perks such as meals and housing, even as the cost of living rose.
“We made contributions to economic development. We gave so much to the company. I hope they can give us suitable compensation,” Ran said.
As a manufacturing slowdown forces employers to cut back on benefits and lay off staff, workers are reaching out to grassroots groups, such as Little Bird, and even -government-linked agencies that offer legal advice and address complaints.
“Workers’ recognition of protecting their rights has increased. They have learned to unify,” Little Bird founder Wei Wei said.
Wei said the dense concentration of factories in China’s Guangdong Province had helped to spread news of the strikes, which emboldened workers.
Thousands of workers in Guangdong and elsewhere downed tools last month as factories hit by slowing demand in the US and Europe passed the pressure of rising costs and falling orders on to staff.
China’s manufacturing activity contracted last month for the first time in 33 months, as the export-led economic growth moderated to 9.1 percent in the third quarter from 9.5 percent in the previous quarter due to falling demand.
The Chinese Communist Party fears an independent labor movement could threaten its grip on power, so it only allows only one, government-linked trade union.
However, activists say government officials have been more sympathetic to individual grievances against factories, especially those funded by foreign firms or investors from Taiwan and Hong Kong.
“The government is afraid of simmering grievances. They don’t want workers to go on the streets or to demand trade unions,” said Debby Chan of Hong Kong-based Students and Scholars Against Corporate Misbehaviour.
Authorities have addressed concerns of workers by giving more teeth to a revised labor contract law, consulting industry groups and allowing courts to handle disputes.
And in an apparent response to recent unrest, authorities in Shenzhen recently announced plans to hike the minimum wage by 14 percent to 1,500 yuan per month from January, following a 20 percent rise in April.
Geoffrey Crothall, a spokesperson for the Hong Kong-based China Labour Bulletin, said some of the recent action showed a new level of sophistication.
He cited the example of workers at five PepsiCo bottling plants across the country who protested on the same day after the US beverage giant sold its plants in China.