As the Chinese government aims to push companies further up the value chain, the flow of migrant workers continues to move towards the region, and the current labor base becomes wealthier, it is believed that the labor market is readying itself for some systemic changes over the coming years and decades. Though there is an increasing number of skilled workers, the workforce overall is young, less educated and under-skilled, calling in to question whether or not the labor force is able to support the highly-skilled industries the government is trying to develop.
Though awareness of basic rights within the Southern Chinese workers can be much improved, awareness levels are increasing. Despite the fact that the Chinese government passed signature reforms in the Labor Contract Law and occupational health and safety laws in recent years, ambiguity in the legal environment persists. This trend of heightened rights awareness is beginning to run up against a persistently ambiguous legal environment. One thing to watch moving forward is how the relationship between these two trends plays out for companies operating in the region.
Companies that develop good labor standards and practices within their own operations, irrespective of legal enforcement, are typically successful in achieving higher levels of workforce stability.
This report was commissioned by the Royal Norwegian Consulate General in Guangzhou, prepared and written by BSR (www.bsr.org).
The 10 most important things to know about labor conditions in South China
5 Key Labor Laws and Regulations in Guangdong
Labor Authorities Overview
Labor Resources Overview