Government and Policy

Minimum wage hike becoming the norm

By Chen Xin and Chen Hong (China Daily)
Updated: 2010-06-10 11:34

Shenzhen - More than 10 provinces, autonomous regions and municipalities have raised their minimum wage standards by at least 10 percent since the beginning of the year, with more regions planning to follow suit amid a series of strikes by workers demanding a hike in pay.

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The southern economic hub of Shenzhen, the base of suicide-plagued Foxconn group, plans to raise its minimum monthly wage to 1,100 yuan ($161) citywide starting in July to improve the living conditions of 8 million migrant laborers, the local government said on Wednesday.

The existing standard - 1,000 yuan for workers inside the special economic zone and 900 yuan for the rest - was set in 2008 and frozen last year as a measure to help export-oriented companies weather the global financial crisis.

Meanwhile, Central China's Hunan province also plans to raise its minimum monthly wage from 500 yuan to 600 yuan starting July 1, local authorities said on Tuesday.

The minimum monthly wage in Beijing will also be lifted from 800 yuan to 960 yuan starting July 1, according to sources with the municipal labor and social security authority.

The All China Federation of Trade Unions on Wednesday also called for wider implementation of the negotiation mechanism between employers and employees.

Chang Hee Lee, a senior specialist on industrial relations and social dialogue at the Beijing branch of the International Labor Office, hailed the regional government's efforts in pushing the negotiation mechanism, but said such a move should be implemented at a national level to make it more effective.

Lu Xuejing, a labor expert at the Capital University of Economics and Business, said the lack of trade unions in some foreign-invested and private companies is a major problem.

"To set up a trade union is a precondition to protect the legal rights of the employees. Only through trade unions, can their voices be heard."

For a long time, employees at companies such as Foxconn earned such low wages because their trade unions were not efficient and strong enough, Lu said.