Eight of China’s provinces and municipalities have released ‘guidelines’ for increasing salaries.Yet given the worker angst in the nation, these guidelines sound a lot like requirements. Workers now have government cover to demand higher income.
Still, not all parts of China seem eager to announce such guidelines.
Two of China’s regions that have been most beset by worker strikes, and higher worker aspirations, weren’t part of the latest release:
There are some who wonder why manufacturing hubs like Guangdong province [near Hong Kong] and Zhejiang province [near Shanghai] have yet to publish their guidelines, since they have just experienced a spate of strikes staged by workers demanding an increase in pay.
“I think the reason these provinces have chosen not to act so far, lies in their worries that releasing a guideline too hastily will inflict extra personnel costs upon local enterprises and impose additional negative impact on them,” Lue said.
It’s hard enough that manufacturers face potential yuan appreciation vs. the dollar. Combine this with hefty salary hikes, and you’ve got a potent cocktail for margins to endure.