Identifier
Created
Classification
Origin
07GUANGZHOU1287
2007-12-17 07:54:00
CONFIDENTIAL
Consulate Guangzhou
Cable title:
The World's Factory Floor: A Tough Place to Work
how-toVZCZCXRO5208 RR RUEHCN RUEHGH RUEHVC DE RUEHGZ #1287/01 3530045 ZNY CCCCC ZZH R 170754Z DEC 07 ZDK CTG NUM SVCS FM AMCONSUL GUANGZHOU TO RUEHC/SECSTATE WASHDC 6741 INFO RUEHOO/CHINA POSTS COLLECTIVE RUEAIIA/CIA WASHDC RUEKJCS/DIA WASHDC RHEHNSC/NSC WASHDC
C O N F I D E N T I A L SECTION 01 OF 02 GUANGZHOU 001287
SIPDIS
SIPDIS
STATE FOR EAP/CM, DRL
E.O. 12958: DECL: 12/17/2017
TAGS: ELAB PHUM PGOV CH
SUBJECT: The World's Factory Floor: A Tough Place to Work
REF: A) Guangzhou 1256, B) Guangzhou 1275
GUANGZHOU 00001287 001.2 OF 002
C O N F I D E N T I A L SECTION 01 OF 02 GUANGZHOU 001287
SIPDIS
SIPDIS
STATE FOR EAP/CM, DRL
E.O. 12958: DECL: 12/17/2017
TAGS: ELAB PHUM PGOV CH
SUBJECT: The World's Factory Floor: A Tough Place to Work
REF: A) Guangzhou 1256, B) Guangzhou 1275
GUANGZHOU 00001287 001.2 OF 002
1. (U) Classified by Consul General Robert Goldberg for reason 1.4
(d).
2. (SBU) SUMMARY: Migrant workers in Guangdong Province, especially
in the Pearl River Delta, continue to confront a variety of
work-related issues -- long work hours, low wages combined with
inflation, and few opportunities for self-improvement -- all of which
make advancement up the economic ladder difficult. Government
initiatives to assist workers lack effectiveness. Workers also face
unpaid overtime wages and employment discrimination, though
employer-provided workplace-injury insurance has reduced the number
of injury compensation cases. END SUMMARY
3. (U) This is the last of three cables reporting on current labor
conditions in the Pearl River Delta. Previous cables examined the
state of labor NGOs (ref A) and government unions, departments, and
bureaus (ref B).
A Land of Migrants
--------------
4. (SBU) Six out of every seven workers in Shenzhen are migrants,
according to Shenzhen Labor and Social Security Bureau Assistant
Researcher Huang Hanlin. Of these, there are roughly four men for
every six women. Numerous contacts told us that the majority of
migrant workers come from Hunan, Hubei, Sichuan, Guizhou, Guangxi,
Jiangxi and Henan provinces, have limited educational backgrounds,
and average in age between 22 and 27.
A Hard Life
--------------
5. (C) Long working hours, low income, and few opportunities for
self-development represent the most serious quality-of-life problems
facing migrant workers in the Pearl River Delta, according to Wang
Guifang an employee of Zhiqiang Consulting Firm, which provides
assistance to migrant workers. Wang told us that workers actually
have mixed feelings about working hours. Although nobody enjoys the
long hours -- typically at least 10 each day -- many workers welcome
overtime as an opportunity to increase their income.
6. (C) Even with long work hours and periodic increases in the
minimum wage -- Shenzhen has raised the minimum wage 16 times since
1992, according to the Labor Bureau -- workers' earnings never catch
up with inflation, said Wang, who noted that many workers live
paycheck to paycheck. Years of hard work often yield but a small
amount of savings. In a separate meeting, Guangdong Labor Department
Labor and Employment Service Center Deputy Director Chen Ruibin
described recent wage growth as "compensational," meaning that labor
had been significantly undervalued -- and underpaid -- in the past.
Chen Ruibin's colleague, Wage Division Director Chen Siyi, said that
in spite of recent high inflation, he believed that wage increases
still outpaced rising prices.
Few Opportunities for Self-improvement
--------------
7. (C) During their few non-working hours each day, many workers
frequent Internet cafes or movie theaters, according to Labor NGO
Director Zeng Feiyang. Zeng noted that many migrant workers are, in
fact, computer literate, and that Internet cafes are ubiquitous near
factories. Zeng said workers still had few opportunities to
communicate with people outside the migrant worker community. The
resulting narrow vision leaves them at a loss as to what they can do
to advance their careers or improve their lives, said Zeng.
Paltry Government Assistance
--------------
8. (SBU) Shenzhen Labor and Social Security Bureau's Huang said the
government attached "great importance" to "improvement of the
employment environment in the city," but the list of initiatives he
cited to support this claim was not impressive. In addition to the
Migrant Workers' Cultural Festival each May, and biannual ceremonies
to honor "Excellent Migrant Construction Workers," Huang trumpeted
free access to various job fairs and job agencies for workers.
Finally, he said that every year the government awards a few
outstanding migrant workers the coveted residency permit, or hukou.
Unpaid Overtime Wages a Major Problem
--------------
9. (C) Cases of unpaid overtime are on the rise, according to Du
Jiang, a lawyer with the Zhou Litai Law Firm in Shenzhen. Du said
that lately such cases account for more than half of the law firm's
business. He said the main problem was that many factories pay only
GUANGZHOU 00001287 002 OF 002
the normal hourly rate instead of the premium rate for work in excess
of eight hours. Du attributed the rise in cases of unpaid overtime
to workers' improved awareness of their legal rights.
Insurance Reducing Workplace Injury Compensation Cases
-------------- --------------
10. (C) In contrast to unpaid overtime cases, the number of workplace
injury compensation cases has been decreasing, according to Zhiqiang
Consulting Firm's Zhu. He attributed the trend to an increasing
number of factories purchasing workplace injury insurance for workers
and estimated that injury compensation cases now constitute only
about ten percent of labor-related litigation.
11. (C) In a separate meeting, Zhou Litai Law Firm's Du Jiang echoed
Zhu's remarks, noting that 70 to 80 percent of enterprises provide
workplace injury insurance for their workers. Du, too, said that the
number of injury compensation cases was decreasing as a direct result
of increased insurance coverage.
The Aged, Male, and Carriers of Hep B Need Not Apply
-------------- --------------
12. (C) Though Huang Zhiming of Shenzhen's Little Bird Hotline said
that phone inquires about employment discrimination were "few," Du
Jiang told us that his law firm continues to handle such cases. Du
divided employment discrimination cases into four categories:
discrimination against workers from certain regions; gender
discrimination with a majority of cases arguing discrimination
against males; age discrimination; and discrimination against
carriers of hepatitis B. With regard to the last category, Du said
that in Dongguan there currently were at least three cases against
Nokia for discriminating against hepatitis B carriers.
13. (C) Du lamented that very few job-seekers take discrimination
seriously, saying that workers would rather spend their time looking
for other job opportunities rather than filing suit against an
employer for discrimination. Du conceded, however, that it was
particularly difficult to prove in court that a company's decision
not to hire a particular person was based on discrimination.
GOLDBERG
SIPDIS
SIPDIS
STATE FOR EAP/CM, DRL
E.O. 12958: DECL: 12/17/2017
TAGS: ELAB PHUM PGOV CH
SUBJECT: The World's Factory Floor: A Tough Place to Work
REF: A) Guangzhou 1256, B) Guangzhou 1275
GUANGZHOU 00001287 001.2 OF 002
1. (U) Classified by Consul General Robert Goldberg for reason 1.4
(d).
2. (SBU) SUMMARY: Migrant workers in Guangdong Province, especially
in the Pearl River Delta, continue to confront a variety of
work-related issues -- long work hours, low wages combined with
inflation, and few opportunities for self-improvement -- all of which
make advancement up the economic ladder difficult. Government
initiatives to assist workers lack effectiveness. Workers also face
unpaid overtime wages and employment discrimination, though
employer-provided workplace-injury insurance has reduced the number
of injury compensation cases. END SUMMARY
3. (U) This is the last of three cables reporting on current labor
conditions in the Pearl River Delta. Previous cables examined the
state of labor NGOs (ref A) and government unions, departments, and
bureaus (ref B).
A Land of Migrants
--------------
4. (SBU) Six out of every seven workers in Shenzhen are migrants,
according to Shenzhen Labor and Social Security Bureau Assistant
Researcher Huang Hanlin. Of these, there are roughly four men for
every six women. Numerous contacts told us that the majority of
migrant workers come from Hunan, Hubei, Sichuan, Guizhou, Guangxi,
Jiangxi and Henan provinces, have limited educational backgrounds,
and average in age between 22 and 27.
A Hard Life
--------------
5. (C) Long working hours, low income, and few opportunities for
self-development represent the most serious quality-of-life problems
facing migrant workers in the Pearl River Delta, according to Wang
Guifang an employee of Zhiqiang Consulting Firm, which provides
assistance to migrant workers. Wang told us that workers actually
have mixed feelings about working hours. Although nobody enjoys the
long hours -- typically at least 10 each day -- many workers welcome
overtime as an opportunity to increase their income.
6. (C) Even with long work hours and periodic increases in the
minimum wage -- Shenzhen has raised the minimum wage 16 times since
1992, according to the Labor Bureau -- workers' earnings never catch
up with inflation, said Wang, who noted that many workers live
paycheck to paycheck. Years of hard work often yield but a small
amount of savings. In a separate meeting, Guangdong Labor Department
Labor and Employment Service Center Deputy Director Chen Ruibin
described recent wage growth as "compensational," meaning that labor
had been significantly undervalued -- and underpaid -- in the past.
Chen Ruibin's colleague, Wage Division Director Chen Siyi, said that
in spite of recent high inflation, he believed that wage increases
still outpaced rising prices.
Few Opportunities for Self-improvement
--------------
7. (C) During their few non-working hours each day, many workers
frequent Internet cafes or movie theaters, according to Labor NGO
Director Zeng Feiyang. Zeng noted that many migrant workers are, in
fact, computer literate, and that Internet cafes are ubiquitous near
factories. Zeng said workers still had few opportunities to
communicate with people outside the migrant worker community. The
resulting narrow vision leaves them at a loss as to what they can do
to advance their careers or improve their lives, said Zeng.
Paltry Government Assistance
--------------
8. (SBU) Shenzhen Labor and Social Security Bureau's Huang said the
government attached "great importance" to "improvement of the
employment environment in the city," but the list of initiatives he
cited to support this claim was not impressive. In addition to the
Migrant Workers' Cultural Festival each May, and biannual ceremonies
to honor "Excellent Migrant Construction Workers," Huang trumpeted
free access to various job fairs and job agencies for workers.
Finally, he said that every year the government awards a few
outstanding migrant workers the coveted residency permit, or hukou.
Unpaid Overtime Wages a Major Problem
--------------
9. (C) Cases of unpaid overtime are on the rise, according to Du
Jiang, a lawyer with the Zhou Litai Law Firm in Shenzhen. Du said
that lately such cases account for more than half of the law firm's
business. He said the main problem was that many factories pay only
GUANGZHOU 00001287 002 OF 002
the normal hourly rate instead of the premium rate for work in excess
of eight hours. Du attributed the rise in cases of unpaid overtime
to workers' improved awareness of their legal rights.
Insurance Reducing Workplace Injury Compensation Cases
-------------- --------------
10. (C) In contrast to unpaid overtime cases, the number of workplace
injury compensation cases has been decreasing, according to Zhiqiang
Consulting Firm's Zhu. He attributed the trend to an increasing
number of factories purchasing workplace injury insurance for workers
and estimated that injury compensation cases now constitute only
about ten percent of labor-related litigation.
11. (C) In a separate meeting, Zhou Litai Law Firm's Du Jiang echoed
Zhu's remarks, noting that 70 to 80 percent of enterprises provide
workplace injury insurance for their workers. Du, too, said that the
number of injury compensation cases was decreasing as a direct result
of increased insurance coverage.
The Aged, Male, and Carriers of Hep B Need Not Apply
-------------- --------------
12. (C) Though Huang Zhiming of Shenzhen's Little Bird Hotline said
that phone inquires about employment discrimination were "few," Du
Jiang told us that his law firm continues to handle such cases. Du
divided employment discrimination cases into four categories:
discrimination against workers from certain regions; gender
discrimination with a majority of cases arguing discrimination
against males; age discrimination; and discrimination against
carriers of hepatitis B. With regard to the last category, Du said
that in Dongguan there currently were at least three cases against
Nokia for discriminating against hepatitis B carriers.
13. (C) Du lamented that very few job-seekers take discrimination
seriously, saying that workers would rather spend their time looking
for other job opportunities rather than filing suit against an
employer for discrimination. Du conceded, however, that it was
particularly difficult to prove in court that a company's decision
not to hire a particular person was based on discrimination.
GOLDBERG