New generation of Chinese migrant workers Jenny Chan Ethical Trading Initiative London 23 September 2010

Students & Scholars Against Corporate Misbehavior Hong Kong NGO, June Staff team, in Hong Kong and Shenzhen Executive Committee (8 persons) Student members (active 80+) Academic advisors (100+)

SACOM “Looking for Mickey Mouse’s Conscience” (2005)

Outline 1. China’s changing labor market 2. Wage 3. Health & safety 4. Freedom of association 5. Labor rights training

1. China labor market Structured by the state Household registration policy (hukou) Internal rural-urban labor migration Chinese migrant workers as second-class citizens

“Floating population” 230 million (China’s National Bureau of Statistics, 2009)

Young Chinese migrant workers years of age (61.6%) Better-educated- youths: years of age (1/3) hold diplomas or degrees Most of them are unmarried

100 million rural migrant workers “the post 80s and 90s generation”

All-China Federation of Trade Unions (ACFTU) Survey report, June 2010 Sample: young migrant workers in 10 cities Demand for decent working conditions Aware of equality and rights -Mass media -NGOs, “bare-feet” lawyers, university student activists -Local Chinese trade unionists

Unskilled and minimum-wage jobs At the bottom rung of the international commodity supply chain

Dormitory labor

The new Chinese working class Face a huge gap between soaring expectations and the harsh reality of factory lives -Despair and loss of hopes - Strikes, demonstrations, petitions to the government

(2) Chinese wages Industrial wages in China have been rising 2004: Provisions on the Minimum Wages 2008: Labor Contract Law 2010: “No.1 Central Document” Positive impacts on both rural incomes and migrant wages

Legal minimum wages Up 10 – 30% City and provincial minimum wages Migrant labor shortage has spurred higher wages e.g. Shanghai: 1,120 yuan/month (GBP107.7) e.g. Shenzhen: 1,100 yuan/month (GBP104.8) In northern China e.g. Tianjin: 920 yuan/month (GBP87.6) e.g. Beijing: 900 yuan/month (GBP85.7)

Central China Zhengzhou (Henan Province) Western China Chengdu (Sichuan Province) Chongqing municipality

Living wage Workers often put up with working hours far beyond legal limits to earn extra income 2,300 yuan/month (GBP220): Living wage standard in Shenzhen City, on the borderline of Hong Kong

(3) Health & Safety Multinational corporations & big retailers have been pressuring suppliers in China Manufacturers minimize their costs to remain competitive -Transfer the pressure of increasingly low profit margins to workers - Force workers to do overtime to meet the quota, neglecting health & safety rules

Elec-Tech International Zhuhai City, Guangdong One-hand justice

Foxconn 13 young workers attempted or committed suicide at the two Foxconn facilities in Shenzhen City (Jan-May 2010)

Wal-mart, Apple, …. Corporate code-of-conduct implementation and factory auditing mechanism Limited effectiveness in worker protection

(4) Freedom of Association The deeper problem behind the pressure of high-risk, high-stress, and low-income jobs is restriction on workers’ right to union organizing Chinese law givew workers’ key rights -to elect union representatives -to carry out union activities without being discriminated (Trade Union Law 2001)

(5) Labor rights training ETI company members: support your supplier factories in China to facilitate workers to form their unions Assistance from local NGOs and labor scholars (and Chinese trade unionists)

2007 – 2009 Hewlett-Packard (HP): in-factory rights training in Donguan City, China - Delta Electronics (Dongguan) - Chicony Electronics (Dongguan) SACOM: funding independence e.g. Bread for All (Switzerland) & SOMO (The Netherlands)

Worker-based, rights-focused training Rights training is a complementary strategy to supplier auditing in advancing corporate responsibility More than 4,000 participating workers acquired knowledge about the new Chinese labor laws and corporate codes of conduct The level of dialogue between factory workers and employers, suppliers and customers, and businesses and NGOs was significantly increased.

labor rights awareness training classes advanced training for worker representatives seminars for middle- level managers and supervisors participatory training

Worker hotline Chinese migrant workers constantly face harassment and intimidation We set up a confidential, independent worker hotline—a safe, direct channel for workers to voice their concerns

Worker participation For sustainable improvement of working conditions, workers need to be involved in the day-to-day monitoring and implementation of labor standards. The social inclusion of informed workers holds the greatest promise for lasting change that could eventually reduce the need for customer auditing of supplier working conditions.

Conclusion Towards higher labor standards The new generation of Chinese migrant workers defend their rights and dignity Companies should improve their purchasing practice to protect workers’ rights Let’s cooperate with NGOs and unions to offer trainings at the workplace and community levels

Thanks