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Migrant workers seek greener pastures
(China Daily)
Updated: 2008-12-17 08:08

 

Migrant workers wait for trains in a Dongguan railway station to return to their homes in Henan province. Jiang Dong

The main streets that once bustled with scores of factory workers and activity now stand quiet. Fewer trucks tread on the roads and there is an uneasy calm here as many migrant workers are busy heading home to face the harsh realities of the grim economic winter.

Like the rest of the world, Guangdong also has been hit by the global recession. Many factories had to curtail their production in the wake of lesser overseas orders, while some had to even down shutters.

Dongguan employed over 6 million farmers-turned-workers in its bustling factories till a few months back. But less workload and even days of being idle have forced many to quit their jobs or seek permission to return home.

It is not just the employees who have been affected. Thousands of landlords may lose rents, while shopkeepers near the closed factories may no longer find customers to buy their wares.

The situation is no different for middle-aged Guo Jinrong and her husband Yin Peitong, employed at a local shoe factory. With their employer veering towards bankruptcy as international orders have virtually dried up, there is every possibility that the duo may lose their jobs soon.

The couple's 11-year-old son and their aged parents, living 1,000 kilometers away in a remote village in Henan province also do not have much reason to cheer.

"The stark reality is that our ability to raise the family has been challenged," said Guo. "To be frank, we have no money for my son and parents since the last two months. We have also been unable to purchase them warm jackets for the winter."

Like millions of migrants in Guangdong, the industrious couple never looked at overtime work as a burden and survived on their meager wages and extra pay - less than one dollar an hour - to support the family.

With slowdown resulting in sharp decline of orders from Europe and the US, the Xingyang Shoemaking Factory where Guo and Yin have worked for three years has given them less overtime opportunities since the middle of this year. Regular work has also lessened in the recent months.

From September, Guo and Yin were able to get work only every other day, with hardly any chances of working for extra pay.

The couple's total income has fallen by more than half to less than 1,400 yuan a month. "If the situation worsens and the orders completely stop, we will lose our jobs," said Guo.

The current earnings are just about enough to keep the pot boiling, the couple said, and that they have to tighten their purses and pursue thrifty habits.

Many migrant workers are in the same boat. The Xingyang Shoemaking Factory owns 10 sub-production units and employs about 8,000 workers. "Many, like us, were fretting about their future as the factory could not run at full capacity," said Guo.

Even with the prevailing gloom, many factories along the expressways in Dongguan are unwilling to downsize staff, as they do not want to incur compensation costs.

But with low pay and less work, many workers are now asking for permission to leave on their own. And that is beneficial to their employers as they do not have to pay any compensation.

Guo and Yin have also made such a decision. "We could not put up with being idle," said Guo while packing and heading for home last Sunday.

Dongguan's East Train Station, however, does wear a busy look with packed trains transporting thousands of migrants back to Sichuan, Anhui, Henan and other provinces daily.

"In most cases, the vexed factory owners would let the employees go," said Guo. Some owners, who believe that their business will return to normal next year, will try to persuade the experienced workers and managers to continue to stay with them.

In October, 714 companies were closed in Dongguan, according to the local government. Local officials said more companies would be closed in the coming months, with the figure likely to cross 1,000 after Christmas.

Like the middle-aged couple, Li Ji and Li Dan, both in their twenties, have also chosen to quit their job of making press buttons for mobile phones. "We had no chance to work for extra pay and what we earn now is far too less for us to survive," said the young couple.

As they are novices, their basic pay is less than $100 per month. "The boss didn't fire us but we chose to go," said Li.

"During the previous two months, our salary, without any overtime income, could only just keep the wolves at bay. We did not find any joy while working," said Li. "We only want to return home and stay with our parents for a while."

Guangdong, one of the key manufacturing hubs in China, has been struggling to cope with slumping exports as many units have closed down. And there are fewer enterprises that have shown interest in fresh hiring.

In downtown Dongguan, the four-storied job fair building which used to swarm with job-seekers now wears a deserted look. The popular weekend job fairs have also stopped.

Now, the stalls on the ground floor are rented by some enterprises. "The number of job-seekers and enterprises has been declining by a big margin," said Yang Jun, a job fair employee.

Yang said the job market would remain closed for most of January due to the Spring Festival holidays, the most important holiday in China which falls in late January. "Earlier the job fairs used to close only for half a month. The expanded holiday can tell you how stagnant employment prospects are," said Yang.

 

Job-seekers look for suitable vacancies at a job fair in Dongguan. Jiang Dong

While floods of migrants return home, workers from other regions are also joining the exodus. Zhang Jun is one such person. After wandering before bulletin boards for several days, Zhang also chose to return to Fujian province where he worked as construction worker for many years. "The average pay in this city is too low," Zhang complained.

In Guangdong, the average pay of a common worker never surpasses 1,500 yuan per month. But in Fujian, Zhang said: "My earnings can be doubled."

"The closure of the factories has not only made those workers lose jobs, but left us also in despair," said Li, who runs a grocery shop.

The toy factory has laid off 7,000 workers after it declared bankruptcy in October. The local government spent over 24 million yuan to compensate the employees, who were left helpless when the company owner fled.

Near its entrance, there are 10 small shops, of which five are closed.

"Nobody visits our shop now and it's hard," said Li. "But I am looking for the factory to be auctioned and reopened soon."

Editor's note: China's export-led coastal cities have borne the brunt of the unfolding financial crisis and looming global recession. China Daily reporter Fu Jing spent several days this month in Dongguan of Guangdong province, investigating the impact the financial turmoil has brought to the migrants, markets and enterprises in this world-famous manufacturing center. We are running his findings today and tomorrow.

(China Daily 12/17/2008 page15)