Monday, April 16, 2012

Alone in the Car: China's Cities and Provinces Raise Minimum Wages

The national government of China is concerned about spreading the wealth around. It wants to make sure working class folks and those in all regions, not just large metro areas, receive good wages. Therefore, they have set out to increase minimum wage by at least 13% for each of the next several years. Several cities or provinces have done more than that this year announcing a 22% increase in their minimum wage.

Remember what I have said before about statistics. These increases mean for example, Shanghai's minimum wage will now be $230 a month. They have a population of 23 million people or Beijing's minimum wage will now be $199.53 a month for their city of 19.6 million people. This at a time when the country is looking to add jobs because the global downturn and loss of jobs hit China too. Some clothing manufacturers have moved to Viet Nam because it is too expensive to have factories in China with the new wages. Sound familiar?

Treat others as you would like to be treated. Employees should put in a good, solid workday. Employers should pay decent wages. I really don't understand why those elements are so hard. Even China's policy is changing. This is truly a global market, a global human resource question, and a global work environment.

People usually make it complex. People are encouraged to be aggressive, to be selfish, boastful, and they (in my opinion) turn out to be somewhat boorish. Rather, if they keep it together by having a positive attitude, share with others, and develop a multi-faceted personality, people will see that doors will open and opportunities will come their way.

Small businesses play a major factor in employment, hiring more people than other levels of companies. By setting a precedence of fair play, including salary, small business owners set the standard for all business sectors to follow. It teaches those entry level employees what is expected and what is the result simply by doing what is right. This lesson, once learned, will influence them throughout their career. Thank you small business owners who take the time to mentor these folks right, right from the beginning.

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