China's Foxconn factory workers get chunky payrise.....

[johnfm]

http://www.telegraph.co.uk/finance/china-business/...



Workers due to get 30% straight away. How is that for wage inflation.

Has Gordon Brown taken over at Foxconn or are they all with Unite and that taunt Derek Simpson.

[nonuts]

linky said:

Following the latest rise, which will take full effect from October 1, the basic salary for production-line workers at Foxconn’s will have risen from 900 renminbi (£91.30) per month two weeks ago to 2,000 renminbi (£203).

Interesting, when we run out of people to exploit stuff will either have to be produced by automated methods or cost more globally.

[Goochie]

Everything will just go to another country, like Vietnam, for example.

[fido]

Goochie said:

Everything will just go to another country, like Vietnam, for example.

Why? If they don't have the infrastructure or high-quality graduates? At least based on the graduates i work with (some are from China) they are alot more motivated and educated than your average Unite employee - actually it's quite depressing as some of the 'average' ones are Oxbridge 1st/2:1s material.

[Deva Link]

fido said:

Goochie said:

Everything will just go to another country, like Vietnam, for example.

Why? If they don't have the infrastructure or high-quality graduates? At least based on the graduates i work with (some are from China) they are alot more motivated and educated than your average Unite employee - actually it's quite depressing as some of the 'average' ones are Oxbridge 1st/2:1s material.

In engineering, I've not heard China's graduates described as generally "high quality" before.

It doesn't need graduates to run assembly lines anyway. Lower educated the better, probably.

[Goochie]

Deva Link said:

fido said:

Goochie said:

Everything will just go to another country, like Vietnam, for example.

Why? If they don't have the infrastructure or high-quality graduates? At least based on the graduates i work with (some are from China) they are alot more motivated and educated than your average Unite employee - actually it's quite depressing as some of the 'average' ones are Oxbridge 1st/2:1s material.

In engineering, I've not heard China's graduates described as generally "high quality" before.

It doesn't need graduates to run assembly lines anyway. Lower educated the better, probably.

Exactly.

When you're using person-power to assemble a product you've engineered elsewhere, it makes no different how well educated they are.

[elster]

Goochie said:

Deva Link said:

fido said:

Goochie said:

Everything will just go to another country, like Vietnam, for example.

Why? If they don't have the infrastructure or high-quality graduates? At least based on the graduates i work with (some are from China) they are alot more motivated and educated than your average Unite employee - actually it's quite depressing as some of the 'average' ones are Oxbridge 1st/2:1s material.

In engineering, I've not heard China's graduates described as generally "high quality" before.

It doesn't need graduates to run assembly lines anyway. Lower educated the better, probably.

Exactly.

When you're using person-power to assemble a product you've engineered elsewhere, it makes no different how well educated they are.

This is why China have been buying up Africa.

[fido]

elster said:

This is why China have been buying up Africa.

Africa = natural resources. I may be wrong but i doubt we'll be seeing i-Phones being produced in Africa for some time. Also it's not just low-paid assembly-line workers - remember HTC was an original design manufacturer before they started to make their own brand phones.

Edited by fido on Monday 7th June 16:01

[DonkeyApple]

fido said:

elster said:

This is why China have been buying up Africa.

Africa = natural resources. I may be wrong but i doubt we'll be seeing i-Phones being produced in Africa for some time. Also it's not just low-paid assembly-line workers - remember HTC was an original design manufacturer before they started to make their own brand phones.

Edited by fido on Monday 7th June 16:01

Indeed. The Chinese are the largest single population in Africa now. They are the overseers and manages while the locals are just the labour. It is all about controlling resources through the 21st century. Whoever controls the right resources will control production. China will slowly become the manufacturing equivalent of OPEC and will control the price paid by the West for goods.

What is interesting is that inflation in China is possibly getting out of control. This will have rapid implications on our own domestic inflation figures.

China knows that it will, over time, lose it's core competitive pricing edge which is delievered through cheap workers, cheap factories, cheap health and safety, in essence the exploitation of ignorant, peasant labour. It knows that in order to maintain market share it must prepare for this change and seek a new way to control market share and this is very simply through controlling resources.

Eventually, other countries will have cheaper labour and general costs but if they cannot obtain the resources then they cannot apply those advantages to the market place and compete against China.

Chinese inflation and market control is coming.

What the West has to do is start working out what aspects of manufacturing cannot be controlled by China and ensure that as prices increase and it becomes once again cost effective to manufacture these specific products domestically that there is the trained labour force and access to resources required.

There is no doubt that we are sleep walking at present from the waning power of OPEC into the waxing control of Chinese manufacturing. You can't stop it but you can prepare for it.

Obviously, we won't.