Young Chinese snubbing factory jobs, says billionaire boss

Discussion in 'China' started by Ray, Oct 9, 2013.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

    Apr 17, 2009
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    Young Chinese snubbing factory jobs, says billionaire boss

    “The young generation don’t want to work in factories, they want to work in services or the internet or another more easy and relaxed job,” Terry Gou, head of the Taiwanese firm Foxconn, said at the Asia-Pacific Economic Cooperation (APEC) forum on the Indonesian island of Bali.
    “Many workers are moving to the services sector and, in the manufacturing sector, total demand [for workers] is now more than supply.”

    Mr Gou’s comments to the Financial Times highlight a major shift in Chinese manufacturing trends that is forcing some factory owners to turn their backs on a country long regarded as the factory of the world.

    Following the economic opening of the 1980s, tens of millions of migrant workers flocked from impoverished villages in central and western China to factories along the country’s southeastern coast.

    That flux is still a long way from drying up. But the number of young Chinese workers prepared to swap their rural homes for the factories of Guangdong province is slowing dramatically as a result of demographic changes, shifting job expectations and a government drive to create jobs and wealth in China’s interior.

    “It is difficult to find workers nowadays,” Yu Hexi, the 52-year-old manager of a factory in the eastern manufacturing hub of Yiwu told The Telegraph during a visit to his production-line earlier this year.

    “We increase [workers’] pay every year by about 10%. We pay over 4,000 yuan (£406) a month now but still [it is difficult],” added Mr Yu, whose firm produces fake plastic flowers for export to Europe.

    “Many workers have returned to their home provinces in central and western China, like Henan, where local companies have started developing. Local governments are now encouraging [workers] to go back and offering benefits.”

    Faced with dwindling interest in the jobs on their production lines, factory owners have employed different tactics to survive.

    With more and more of China’s young “factory girls” now preferring jobs in the services industry, some employers are hiring an increasing number of men or older women to take their places.

    Other factory owners are relocating to countries such as Vietnam and Cambodia where overheads are lower.

    Since 2010, Foxconn has been moving its operations from the southeastern city of Shenzhen to inland provinces such as Sichuan and Henan where labour is both cheaper and more abundant.

    Mr Guo said his company was also “automating more of its assembly lines” and attempting to diversify into “non-manufacturing work”.

    Finding workers is not the only problem Foxcoon faces in China. Last September 5,000 police officers had to be deployed to one of its factories in Shanxi province after 2,000 workers reportedly clashed with security guards during an apparent labour dispute.

    In 2010 the company was strongly criticised over working conditions at its factories following a spate of suicides.

    Young Chinese snubbing factory jobs, says billionaire boss - Telegraph


    China is changing.

    After years of deprivation, and with new capitalism drawing blood, the restive Chinese are not ready to accept the utter nonsense of before.

    The US has given the right carrot for a new generation that will rise to achieve the their aspirations as the labouring class and will overthrow the repressive dispensation that continues to fool them and extract the pound of flesh!

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