labor - Only better productivity can avoid labor conflicts - FLA

Can companies in China pay their workers a decent wage, avoid problems with overtime and still make a profit? Yes, says the former South-African labor activist Auret van Heerden, who is now working in China in Business Week. Many of the current problems are caused by the extremely badly work organization in China.

One is that the brands book and confirm orders really late. And they often change their orders after booking. The brands want to order later and they don't want to hold product. Then you add price pressures into that and it is really tough for the supplier [to not overwork its workers]. But the factory often doesn't order the materials until too late and they are often delivered late [to the factory], too. The factory production layout is often a mess, so the supplier gets behind schedule and over budget even before they know it. Then they have to catch up. And to save money, they extend hours, but don't pay overtime premiums. And the suppliers also lack proper training. The styles [of clothing and footwear] are becoming more complicated and are changing more frequently.

The CEO of Fair Work Association elaborates on codes of conducts and auditing procedures, but most important is that companies should get their act together:

Productivity improvements in the factory are very important. I started working on labor rights and got into areas like productivity and supply chain management. I never thought I would deal with these kinds of issues. But until they get resolved, China will continue to have overtime problems.