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TRADE WARS
China's workers flex their muscles as growth slows
by Staff Writers
Shenzhen, China (AFP) Dec 4, 2011

China non-manufacturing sector contracts
Beijing (AFP) Dec 3, 2011 - China's non-manufacturing sector contracted in November, according to data released Saturday, as Beijing begins to ease its monetary policy amid signs of a slowdown in the world's second largest economy.

The Purchasing Managers' Index fell to 49.7 last month, a fall of eight points from October, the China Federation of Logistics and Purchasing said.

A reading above 50 indicates the sector is expanding, while a reading below 50 suggests a contraction.

The non-manufacturing sector includes transport, property, retail, catering and the software industry, among others.

The data follows figures released Thursday showing China's manufacturing activity contracted in November for the first time in 33 months, as exporters are hit by slowing demand due to the eurozone debt crisis and US economic woes.

New orders in the non-manufacturing sector fell to 47.2 in November, down 5.3 points over the month, according to data from the federation based on a survey of about 1,200 companies in 20 industries, Xinhua news agency reported.

"Less active consumption in the off-season and the sluggish demand in the construction sector combined to weigh down the index," federation vice president Cai Jin was quoted as saying.

The slowdown in exports and economic growth, which eased to an annual 9.1 percent in the third quarter from 10.4 percent last year, has led the government to begin an easing of monetary policy, which had been focused on fighting inflation.

China's central bank on Wednesday announced the first cut in bank reserve requirements in almost three years to help boost lending and spur growth to counter alarming signs of a domestic slowdown and the crisis in key export markets.

Analysts had forecast such a move after the central bank said recently it would "fine-tune" monetary policy amid growing concerns that the weak global economy is increasing the risk of a sharp slowdown in China.

China, anxious about rising living costs, has pulled on a variety of levers to curb price rises in the past two years, including hiking interest rates five times since October 2010.


Faced with lay-offs 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 labour unrest.

In the southern boomtown of Shenzhen, workers recently gathered at the office of labour rights organisation 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 ($315) monthly wage by working overtime at the Hong Kong-invested Yong Jie Electronics 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," said Ran.

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," said Wei Wei, founder of Little Bird.

Wei said the dense concentration of factories in China's southern province of Guangdong had helped spread news of past strikes, which has emboldened workers in a recent wave of labour conflicts.

Thousands of workers in Guangdong and elsewhere downed tools last month in a series of strikes as factories hit by slowing demand in the United States and Europe passed the pressure of rising costs and falling orders on to staff.

China's manufacturing activity contracted in November 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.

China's ruling Communist Party fears an independent labour movement could threaten its grip on power, so it only allows only one, government-linked trade union.

But activists say government officials have been more sympathetic to individual grievances against factories, especially those funded by foreign companies or overseas Chinese investors from Hong Kong and Taiwan.

"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 labour 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 spokesman 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 Pepsi bottling plants across the country who protested on the same day after the US beverage giant sold its plants in China.

"That is a level of organisation that we've not really seen before, in terms of coordination of factories in different parts of China," Crothall said.

In strikes last year against Japanese companies, workers cloaked their protests in anti-Japanese rhetoric to make them more acceptable to the government, which still raises the issue of Japan's wartime atrocities.

"They know it's a motivating tool to get people on their side. Chinese workers are quite politically savvy," added Crothall.

At a Shenzhen factory owned by Hong Kong women's underwear maker Top Form International, last month hundreds of workers refused to return to their sewing machines for several days, until management paid every worker 1,000 yuan.

"They swear at us. They never give us overtime. Why should we work?" one of the strikers told AFP outside the ageing green factory building.

Another two-week strike in November by nearly 1,000 workers which paralysed a Shenzhen factory invested by Japanese watchmaker Citizen revolved around rest breaks.

Managers made employees work additional time without pay to make up for breaks, which lasted 15 minutes every two hours, workers said. They returned after talks negotiated 70 percent pay for the rest periods.

Deng Shiping, who joined a strike of thousands against a Taiwan-invested electronics factory last year, said organising was made easier since everyone lived together in dormitories -- a typical arrangement for migrant labourers.

Workers chose representatives to inform other shifts and departments about the planned strike. "There was no leader, it was us -- the workers -- all together," he said.

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Chinese migrant worker in search of better life
Shenzhen, China (AFP) Dec 4, 2011 - Young Chinese migrant worker Deng Shiping has found money since coming to the southern city of Shenzhen, but he cannot find love.

Like millions of others before him, he travelled to Shenzhen -- the special economic zone bordering Hong Kong -- from the impoverished central province of Hunan in search of a better life three years ago.

"My mother, my father, my older sister -- everyone plants rice. I came here by myself. It was just for the money," Deng, 27, said in downtown Shenzhen, surrounded by the gleaming office buildings and massive shopping malls built on the toil of migrants like him.

Deng found a job welding tiny components for earphones on the production line of a factory owned by Taiwan's Merry Electronics.

He wants to earn enough money to build a house to start a family in his rural home in Hunan near Chenzhou city.

He has yet to find his bride-to-be, even though three-quarters of the workers at his factory are female -- most of their parents do not want them to marry another migrant worker.

Now he hopes to find a wife in his home town once his house is built, and has downloaded a photo from the Internet onto his cell phone of a doe-eyed Chinese girl as a model for his potential mate.

Pay and conditions at the factory have improved since thousands of workers went on strike in summer last year, allowing his own salary to rise to 1,320 yuan ($210) a month, which is Shenzhens minimum wage.

"Food prices are rising. But if I work overtime, I can get by," he said.

One of the reasons for the strike was bosses fined workers for talking on the job, a rule which has since been scrapped.

"If I was working with others and I got careless and spoke, the boss would deduct 20 yuan from my salary -- 180 yuan if I was loud."

He worries about possible adverse health effects of exposure to fumes from welding and a solvent used in production. "It's poisonous," he said, adding workers receive an extra 50 yuan a month as compensation for the increased risk.

Still, he sees the factory job as a stepping stone to starting his own business, selling clothes wholesale.

"I'm not going to be here for long. I want to run my own business," he said.

Wei Wei, founder of a Chinese organisation promoting migrant workers' rights called Little Bird, said: "Everyone likes Shenzhen, because it's special."

"But having workers find jobs in this city has caused great damage," he said, citing labour strife and occupational diseases. "A lot of workers leave Shenzhen broken-hearted."



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