Discuss what happened in Africa:
Briefly summarize both the Chinese and African markets. What's
happening in China's labor market and colleges and the impact on
Africa. Remember: relative prices matter!
Chinese Maker of Ivanka Trump’s Shoes Looks for Cheaper
Labor
By KEITH BRADSHER (Links to an external site.)Links to an
external site., JUNE 1, 2017
DONGGUAN, China — The Chinese factory workers who make shoes
for Ivanka Trump (Links to an external site.)Links to an external
site. and other designers gather at 7:40 every morning to sing
songs.
Sometimes, they extol worker solidarity. Usually, they trumpet
ties between China and Africa, the theme of their employer’s
corporate anthem.
That’s no accident. With many workers here complaining about
excessive hours and seeking higher pay, the factory owner wants to
send their jobs to Ethiopia.
The employer, Huajian International, now faces scrutiny from
labor activists for how it treats workers. Chinese authorities this
week detained an activist (Links to an external site.)Links to an
external site. who went undercover in the company’s factory here
for a labor rights group. Two other activists who worked at Huajian
are missing; it’s unclear whether they were detained.
Zhang Huarong, center, Huajian’s founder, singing the
company’s song with employees. Credit Gilles Sabrié for The New
York Times
Ms. Trump’s father campaigned for the United States presidency
on a platform of bringing back (Links to an external site.)Links to
an external site. overseas manufacturing jobs. But deep (Links to
an external site.)Links to an external site.economic (Links to an
external site.)Links to an external site. and demographic shifts
mean a lot of low-end work — like making shoes — doesn’t offer huge
profit in China. As President Trump accuses (Links to an external
site.)Links to an external site.China of stealing jobs (Links to an
external site.)Links to an external site., those jobs are now
leaving for other shores.
Huajian, which also makes shoes for a number of American
brands, was a major beneficiary of the decades-long shift of
manufacturing jobs away from the United States. Global brands
flocked to China to tap into the country’s cheap and willing labor
pool.
Today, Chinese workers are less cheap and less willing. More
young people are going to college and want office jobs. The
blue-collar work force is aging. Long workdays in a factory no
longer appeal to those older workers, even with the promise of
overtime pay.
In interviews in December and again on Sunday and Monday
outside Huajian’s vast industrial complex in this southern Chinese
factory city, numerous workers interviewed by The New York Times
complained about 14-hour days. While many liked the overtime pay,
they said the days were too long, especially since they often
included up to three hours of unpaid breaks for lunch and dinner.
The workers insisted on anonymity for fear of retaliation by
management.
Shoes on a conveyor belt in Dongguan. Many Huajian workers
have complained about excessive hours and are seeking higher pay.
Credit Gilles Sabrié for The New York Times
China Labor Watch, the advocacy group investigating the
factories, said it found that employees had worked longer weeks
than Chinese labor law allows, even excluding breaks. Such
violations are common in Chinese factories.
A Huajian spokesman, Wei Xuegang, said the company knew
nothing about the activists. Asked about the accusation from China
Labor Watch, he said Huajian scheduled extra hours during busy
times but paid workers according to the law. In a December
interview, Zhang Huarong, the company’s founder and chairman, said
Huajian followed overtime laws.
The Ivanka Trump brand declined to comment on the labor
conditions or the activists. In terms of bringing jobs back to the
United States, the company said, it was “looking forward to being a
part of the conversation.”
Such tensions are fueling the drive of Huajian’s founder, Mr.
Zhang, to move work to Ethiopia. A former drill sergeant in the
Chinese military who sometimes leads his workers on parade-ground
drills, Mr. Zhang says work like making shoes will never return to
the United States and is increasingly difficult in China as
well.
“Do Americans really like to work, to do these simple and
repetitive tasks?” said Mr. Zhang, in the December interview.
“Young Chinese also don’t want to do this after they graduate from
college.”
In many respects, China’s economy is maturing.
The number of people who turn 18 each year and do not enroll
in college — the group that might consider factory work — had
plummeted to 10.5 million by 2015 from 18.5 million in 2000,
government data shows. Because of the effects from China’s former
“one child” policy, the figure is on track to fall below seven
million by 2020.
Costs are rising too, as the government raises minimum wages
and benefits in an effort to shift China’s economy away from cheap
manufacturing. Wages in Dongguan have increased ninefold since the
late 1990s, Mr. Zhang said.
Workers said they resented the hours, especially the unpaid
breaks.
One employee’s printed schedule in December showed that the
factory required 60 hours and 10 minutes of paid work per week.
Chinese laws require that workweeks average no more than 44 hours
and limit overtime to 36 hours per month.
On Monday, in the middle of China’s three-day Dragon Boat
Festival holiday, throngs of workers filed into the factory. Asked
whether he would be eating zongzi, the traditional rice dumpling
served during the holiday, one worker replied that they don’t get
to celebrate. Another said Huajian gave each worker two small
dumplings and an egg for the holiday.
One worker, a middle-aged woman with the surname Du, said her
children had gone home to central China. Ms. Du wished for time off
to celebrate, so she could make rice dumplings for them.
Mr. Zhang said that his company kept working hours within
legal limits, despite workers who want more overtime pay.
“We cannot let them work extra hours just because they have
low pay,” Mr. Zhang said in a lengthy interview in December. “We
have thought about it, but we want to do business well.”
Many workers have said their days were too long, especially
since they often include up to three hours of unpaid breaks for
lunch and dinner. Credit Gilles Sabrié for The New York Times
China Labor Watch said on Tuesday that it had lost contact
with three undercover activists (Links to an external site.)Links
to an external site. at Huajian factories. The wife of one in the
factory in Dongguan said he had been detained by the police.
Li Qiang, who started China Labor Watch 17 years ago, said the
group’s activists had never before been detained by the police.
“I’m very worried about their safety,” he said. “The longer I’ve
lost contact with them, the more I worry.”
Huajian peaked at 26,000 employees in China in 2006. Staffing
is now down to between 7,000 and 8,000 thanks to automation and the
shift to Ethiopia, Mr. Zhang said.
Huajian produces 100,000 to 200,000 pairs of Ivanka Trump
shoes each year, a small fraction of the eight million pairs of
shoes it produces annually. The Dongguan factory makes the heels
while a second factory completes the shoes. Marc Fisher Footwear,
which licenses the Ivanka Trump brand for shoes manufactured by
Huijian, has said it was looking into the allegations.
Mr. Zhang has had occasional brushes with Chinese labor laws,
although no more than many employers in this increasingly litigious
society. In 2014, Li Jianguo, a worker, sued Huajian, saying he
worked 104 hours of overtime per month and was not paid for it.
Huajian acknowledged in that case that the worker had been putting
in 52 hours of overtime per month, according to the text of the
court verdict, and agreed to pay him for that.
Mr. Zhang said that workers currently earn $525 to $580 per
month, including overtime pay but not including company-paid
benefits like medical insurance and housing subsidies. Workers said
that pay ranged from $380 to $580 per month.
The money can go a long way in a factory city like Dongguan.
Workers said that a 215-square-foot apartment in the neighborhood
costs $29 a month to rent. The company provides a monthly housing
subsidy of $11.60.
A worker at the Huajian factory that produces heels for Ivanka
Trump shoes, which are completed at another factory. Credit Gilles
Sabrié for The New York Times
Citing labor costs and the country’s foreign investment push,
Huajian is building a sprawling complex of factories, office
buildings and a hotel on the southern outskirts of Ethiopia’s
capital, Addis Ababa. Mr. Zhang’s shoe factories there already have
5,000 employees. When finished in four years, the Addis Ababa
complex will be ringed by a replica of the Great Wall of
China.
Some interviewed Huajian workers said they were not concerned
about jobs being moved to Ethiopia, given the plentiful number of
jobs in China’s southern manufacturing zone. Still, many longtime
workers face age discrimination if they leave, as other factories
prefer workers under 35. Shoemaking is not strenuous and poses few
physical dangers, making it more appealing to older workers.
“I really couldn’t get used to these long working hours at the
beginning,” one worker said, “but I don’t really have a
choice.”
Follow Keith Bradsher on Twitter @KeithBradsher (Links to an
external site.)Links to an external site..
Rachel Abrams contributed reporting from New York. Ailin Tang
contributed research.