AFSCME 3357-HOF'S BLOG

Insight on the Chinese Labor Market
from the Detroit News

Michael Dunn of the Autos Insider section of the Detroit News writes about his perceptions about doing business in China

It is true that there are thousands of workers lining up for factory jobs in the inland provinces. But if you're like most foreign investors, you'll be setting up an office in or near major cities like Beijing, Guangzhou or Shanghai. You will also want people who are facile with the computer, speak and write English and take some initiative.

Chinese professionals with such skills are getting scarcer and scarcer. That's because scores of global automotive companies like Toyota, Bosch and Hyundai and Cummins are muscling each other in pursuit of competent employees. As the former chief representative of my Beijing office once said:

"People -- there is no shortage of those in China. The kind of people you need? That's a different story."

Also

Foreign-investors can recruit and interview employees. And they can dismiss workers too. But not without strings attached. Many companies find their own employees by advertising on Chinese Internet portals. But when it comes time to sign contracts, companies must notify the local foreign enterprise employment bureau.

For every employee, these government agencies collect a monthly payment from the company, known as the "San Xian Yi Jing" or the "Three Insurances and One Fund."

The insurance payments (for unemployment, retirement and health) amount to no less than $120 per month per employee. The fund, which is a kind of forced savings towards purchase of a new home, is set at 8 percent of the month salary.

In the event a company releases an employee, the standard payment is one month for each year the employee has worked at the firm.

Moving to China? Here's some tips on finding a staff - 02/10/05