South China's Guangdong Province will raise its minimum
salary levels in September, in attempt to make the province a more
appealing destination for migrant workers.
The increased monthly pay will benefit more than 23 million
migrants workers who are currently employed in the province, said
Fang Chaogui, director general of Guangdong Provincial Bureau of
Labor and Social Security.
"Guangdong will once again lead the way in minimum salary
levels," Fang told a press conference in Guangzhou, capital of
Guangdong Province, yesterday.
After the new standard comes into effect September 1, workers in
Guangzhou will earn a minimum of 780 yuan (US$97.5). In Shenzhen it
is increased to 810 yuan (US$101.25), while in cities Zhuhai,
Foshan, Dongguan and Zhongshan the minimum will be 690 yuan
(US$86.25).
The increase is on average 17.8 percent, Fang said.
"This is the seventh time Guangdong has raised its minimum
salary in the past 12 years," Fang said. "This is the biggest
increase yet."
Currently, the minimum monthly salary in Shanghai and Jiangsu
Province is 690 yuan (US$86.25), higher than the 640 yuan (US$80)
in Beijing. These places are also reported to be considering an
increase.
Fang urged all companies in Guangdong to strictly implement the
new standard and further protect the legal rights of migrant
workers.
"We will seriously punish those who fail to adopt the new
minimum salary standard," he warned.
The large number of foreign-funded companies, joint ventures and
private companies registered in the province are suffering a
shortage of more than 1 million workers.
Low salaries are blamed as one reason many workers are leaving
the area for the Yangtze River Delta region.
Local companies and workers welcomed the announcement,
Peter Chu, who runs a shoe factory in Guangzhou's suburbs, said:
"The new minimum salary will certainly help us recruit more workers
for business expansion, without significantly increasing business
costs in the near future."
The Hong Kong investor said workers' salaries accounted for
about 10 percent of his company's total production cost.
"Many companies could reduce production costs through scientific
and technological innovations," Chu told China Daily.
Chen Zhihua, a local migrant worker, said the higher salary
would benefit workers.
"The increase will help the many migrant workers in the
province, and encourage us to work harder."
(China Daily July 13, 2006)