Monday, March 12, 2012

New labor in China

In China they have had new laws passed increasing labor wages and workers benefits. This has caused many industries to begin hiring more temporary workers so they can get around the new rules. They estimate that 1/5 of employees are now temporary workers and it is expected to increase.  This is interesting to me because it is a reoccurring pattern for companies to find ways to get cheaper labor, such as the US outsourcing in China.

Kimberly Young
http://www.businessweek.com/articles/2012-03-08/why-chinas-factories-are-turning-to-temp-workers

1 comment:

  1. I agree with you on the aspect that it is a cheap way for companies to find cheap labor. I wonder what would happen to the companies and quality of the work if they were to make it so there was a guarantee of pay or something along those lines. That way the workers would have some security rather than always having to stress out about finding jobs.

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