Workers in China protested, and the companies responded by increasing hefty pay. This is good news for China and the world, because it implies that the country is slowly leaning on towards the benefit of the workers. This is a good indication because it will lead to increase in domestic consumption. Aside from this, it is also one step towards global economic balance and would definitely be for the better.
This move also coincides very well with China’s aims of creating a new model for growth, one that is determined by consumption. According to Ting Lu, an economist, this new model demands that the GDP is redistributed more towards the labor force.
Examples of companies that heeded to the concern of the laborers are Honda Motor Company, which increased their pay raise to 24 percent. Another company is Foxconn, whose workers will get 30 percent increase, primarily sparked by incidents of suicide which are speculated to be due to poor working conditions, a speculation which is heavily defended by Apple’s CEO, Mr. Jobs.
The stories of these two companies are quite amazing, since China has been known to cover their ears from the woes of the workers. It has been estimated that China’s blue collar workers will continue to enjoy these benefits until 2012.
