Thursday, August 26, 2010

Strikes in China Unprecedentedly Successful

China is not precisely well known for having a sincere regard for human rights. This naturally translates to labor rights within the economy. However, this disregard is starting to have repercussions for Chinese businesses. A series of strikes in southern Guangdong province  by mostly migrant workers at factories for Japan's Honda and Denso Corporation have set a precedent that offers hope to many human rights advocates interested in the Chinese economy. State-ownership and limited media rights to coverage mean that heretofore strikes have been remarkably unsuccessful. The recent strikes have been shockingly successful in making gains for workers. These strikes were likely met with success in part because the factories are Japanese-owned and thus the media was allowed to cover the events. Eventually, Honda and Denso employees were able to obtain pay increases and limited benefits. This may mark a slight shift in the structure of China's economic system. This is the first breach of their absolute ban on independent unions and collective bargaining. Such a shift would give workers significantly more power but may also raise costs in what in generally known as the "Workshop of the World."

2 comments:

John said...

Obviously the work conditions in China have been awful for years but I do find it amazing that these workers were able to unionize in a country with that kind of restrictions when Honda workers in the United States do not have any type of union.

Tanvi Devidayal said...

This is not very surprising since China's economy is mainly running on cheap labor and so if they were to unionize and go on strike, it would hurt the economy.