Since gaining its “factory of the world” label, China has seen a substantial increase in foreign businesses relocating factories to its provinces, tempted by low operational costs. Whilst the country is reaping benefit from foreign investments and a booming economy, competitiveness comes at a price, and workers seem to be footing the bill.

Many protests in China occur far from the public eye but recent figures show they are on the increase. More than three million people took part in demonstrations in China in 2003, an increase of 15% from the year before.

The most recent seven-week strike by 6,800 ex-textile factory workers has just come to an end in Xianyang city, Shanghai Province, after staff refused to sign what they considered ‘unfair labour contracts,’ according to China Labour Bulletin rights group. The Hong-Kong based China Resources, owner of the Xianyang Huarun plant, previously state-owned Tianwang Textile Factory, tried to impose a yearly severance payment onto its workers, an equivalent of one month’s salary, which would not guarantee future re-employment. Other contract conditions included a ‘probation period’ of six months, generating only 60% of the workers’ regular salary, followed by an offer of a short-term contract. The dispute has now been resolved with some concessions in place but as many as 20 activists have been detained by the police and a ‘wanted notice’ has been issued for three others, allegedly for criminal offences.

In another dispute four workers at a Taiwan-owned shoe factory in Southern China have been jailed for three-and-a-half years for protesting against wage conditions. One other person has had his sentence suspended. They were among 40 arrested after thousands went on strike at two factories in Dongguan, producing shoes for international brands such as Brown, Wolverine World and Timberland, on April 23 this year. According to a New York-based labour rights group, although charged with ‘property damage’, the workers were never proven guilty as the prosecution produced no evidence. Another five workers were also arrested at a different factory in Dongguan after a separate protest on April 21 and they are expected to stand trial soon.

Reports from the Chinese police confirm that the trend is rising in size and number with strikes becoming increasingly organised. The main reasons for the strikes reported include wage disputes, social welfare problems, the restructuring of state-owned enterprises and evictions. Anger has occasionally erupted into violent confrontations with employers and authorities.

 

 

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