“China labour unrest flares as orders fall”

FT reports on this trend, which is a key part of the argument claiming that a severe dip in the Chinese economy could easily topple the government:

China is facing its worst wave of labour unrest since a series of wildcat strikes at Japanese-owned car plants last year, as declining export orders force factories to reduce worker pay.

More than 10,000 workers in Shenzhen and Dongguan, two leading export centres in southern Guangdong province, have gone on strike over the past week. The latest protests broke out on Tuesday at a Taiwanese computer factory in Shenzhen.

Last week, Guangdong’s acting governor said the province’s exports dropped 9 per cent in October from the previous month. Provincial leaders are also contending with widespread protests by farmers over land seizures. On Monday nearly 5,000 residents in the town of Wukan marched on government offices in a peaceful protest.

Factories are cutting the overtime that workers depend on to supplement their modest base salaries, after a drop in overseas orders.

According to CLB, the average basic wage for electronic workers is about Rmb1,500 ($236) a month, but rises to Rmb2,500 with overtime. “Their basic wage is never enough on its own without overtime,” Mr Crothall said.

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Filed under economy, inequality, labor dispute

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