I'd like to put a 'first-hand knowledge' face on this discussion about how things work in China. I've been there and am doing just that-- having product made in China. I've been to the factory and seen the workers. I've talked with the owner of the factory, who speaks very good English, by the way. What I came away with is this--
What is reported in the press about Chinese labor practices is true. However, what they are not reporting is that it is only true in a minority of cases. For the most part, factories compete for skilled laborers and the larger the factory, the more benefits the workers have access to. It works much like the old "company store" scheme, except in reverse. To keep the laborers from moving on to greener pastures, the factory owners provide what they can in the way of perks. From the smaller factories providing employee break rooms outfitted with TV's, VCR's and DVD Players, along with microwaves and refrigerators, to the larger factories offering low-cost housing, free recreational facilities and at-cost groceries and sundries.
I asked the owner of the factory where I'm having my Mercury kit done what kind of 'hoop-jumping' he had to do to do business with people in the US and his answer was very surprising-- he said the government stays out of his business, excpet when they come to evaluate if he could use more space or not. The government actually helps him expand his facility when he needs it. This isn't in the form of a tax break or credit, its in the form of a new building!
The manufacturing facility itself was very clean, and the workers were far from dressed in rags. A lot of them had a Walkman or a CD player. The people in the painting area were working at stations with forced-air ventilation-- at each station!! You couldn't smell the paint at all!
What I came away with was this-- and I asked the owner of the factory if I was correct in making this conclusion... The government may be Communist, the government places no restrictions on who individuals can do business with. Travel to and from the country is without restriction. And what is really interesting is that they have elections for regional government positions. He confirmed for me that the country is gradually moving toward democracy and definitely embracing capitalism. In his words, he has never been so happy or prosperous before. So, while the basic wage of the people working in these factories may be way, way below what we consider acceptable, every single one of them is very happy to have the job-- and its an 8-10 hour day, unless they WANT to work overtime.
The country may still be Communist in some ways, but when I was there, I didn't see any of them. What I saw is a country rebuilding and people being given opportunities. Does that hurt this country? I'm sure it does. From my perspective, for me to be able to start my business with the money I had, there was no other choice. Making my products in China means I can put a model kit on the shelf that will sell for $65. Making the same thing here, or even in Canada, would make the same kit retail for $150 or more. The cost of my tooling in China will wind up being nearly $70,000 and the cost of running the first 2000 kits will be nearly $20,000. The cost of the tooling alone, if done here, would have exceeded $250,000. How do I know?
I shopped around!
Scott snipped-for-privacy@AOL.com