Printed Circuit Design & Fab - January 2008 - (Page 4)

OUR LINE China’s Labor Pains American suppliers about the “China situation” and sometimes joke, “Where is Jimmy Hoffa when we need him?” But here we are a few years later, and the idea is not so farfetched. Unfortunately, instead of independent and competing organizations, the labor union in China is the party-controlled All-China Federation of Trade Unions. Still, even great progress can start in tiny steps. It’s not news that China is the global workshop. It’s also well known that KATHY this meteoric rise came on the back of the Chinese worker. These individuals NARGI-TOTH toil for small wages, with little to no security, in the hopes of making a bit more than they could have on the farm. Many arrive at a factory with the intention of staying a few years. They live in onsite dormitories supplied by their employer, separated from their families for months or longer. They typically save or send their earnings to their families. For those of us with regular day jobs, their living conditions and work experience are hard to identify with. Things are about to change. In 2007, China ratified two statutes to help to protect workers’ rights. The Labor Contract and Employment Promotion laws have emerged from the back rooms and went into effect Jan. 1. According to a report from Foreign Policy in Focus (fpif.org/fpitxt/3824), the new laws came under striong opposition from companies like WalMart, Google, UPS, Microsoft, Nike, AT&T and Intel (acting through the American Chamber of Commerce) to block passage. There were a number of revisions to the statute based on input from organizations like AmCham representing foreign corporations. International companies lobbied forcefully against many of the proposals, claiming they would fuel rising labor costs that have already crept steadily higher over the past five years. These companies were also concerned over the possibility that China would become a more difficult place to do business if they were forced to be more cognizant of employees’ rights and consult with state unions before layoffs. Such issues weren’t given much thought when companies dealt with workers individually, not collectively. The thrust of this statute is the labor contract system. Under Chinese law, contracts have long been required to protect employees, but the government looked the other way while many companies ignored them. The new statute complicates noncompliance with standard contract provisions, even for migrant employees, and the government has indicated enforcement will occur. Certain reports state the new statutes will have the power to enable change in labormanagement relations and improve Chinese workers’ standing. Foxconn, for one, has already acknowledged them, issuing a statement in December that it will extend contracts to workers. There are a number of employee protections incorporated into the statutes, including new limits on probationary periods and reducing the time employers can pay employees (lower) probationary salaries. There are also a number of age discrimination protections, including the right to severance pay and protection from termination for aging workers. What the new laws don’t do is provide Chinese workers with what many would consider fundamental protections. Chinese workers still lack the right to form independent unions, or strike. In the past, the All-China Federation of Trade Union has played only a minor role in employee negotiations, rarely pressing for higher wages or enhanced benefits. It is hoped that it will be more pro-worker in future dealings because defusing worker unrest and improving social stability are certainly at the root of these labor law changes. It is possible that these new labor laws will help with a number of related labor issues that technologies companies face when operating in China. The turnover rate for employees is among highest in the world. Large companies have entire departments whose sole purpose is new employee orientation and training. The more specialized the job, the more arduous the task. It is anticipated that employees with hard contracts and longer contractual tenure may ease this burden, a win-win for workers and their employers. Fair warning for those companies taking the shotgun approach, blasting low-cost bodies at the opportunities, without much in the way of organized marketing, business development or sales planning: it’s time to rethink your model. Labor costs are going to rise. The best people will command long-term contracts. The key to success may rest in a company’s ability to recruit and retain the best employees and reward them appropriately. Sound vaguely familiar? A few notes as we move into 2008. A warm welcome our new associate editor, Phil Buonpastore. Phil comes to us with a degree in electronics engineering technology and experience as an applications engineer for machine vision equipment. And Eric Bogatin fans take note: The Signal Doctor is taking a sabbatical, but promises a technical article or two in the upcoming months. pcdandf.com EDITORIAL EDITOR: Kathy Nargi-Toth, 678-589-8866, knargitoth@upmediagroup.com ASSOCIATE EDITOR: Phil Buonpastore, 678-5898853, pbuonpastore@upmediagroup.com EDITORIAL OFFICE: 2400 Lake Park Drive, Suite 440, Smyrna, GA 30080 678-589-8800; fax 678-589-8850 EDITORIAL ADVISORY BOARD: Dr. Eric Bogatin, Be The Signal; Michael Carano, Electrochemicals; George Dudnikov, Sanmina-SCI; Jack Fisher, Interconnect Technology Analysis; Happy Holden, Mentor Graphics; Istvan Novak, Sun Microsystems W HEN I was working on the supply side, I would talk with other North CONTRIBUTING EDITOR: Dr. Hayao Nakahara COLUMNISTS: Bruce Archambeault, Peter Bigelow, Dr. Eric Bogatin, Michael Carano, Dominique Numakura, Dr. Abe Riazi, Susy Webb PRODUCTION MANAGING EDITOR: Katherine Haddox, khaddox@upmediagroup.com PRODUCTION MANAGER: Javier Longoria, jlongoria@upmediagroup.com SALES SALES ASSOCIATE: Kamden Robb, 678-589-8843, krobb@upmediagroup.com EXHIBIT SALES MANAGER: Brooke Anglin, 678-589-8833, fax 678-589-8850, banglin@upmediagroup.com KOREA SALES: Young Media Inc., +82 2 2273 4818, fax +82 2 2273 4866, ymedia@ymedia.co.kr PRINT REPRINTS: Edward Kane, FosteReprints, 866-879-9144 ext. 131, fax 219-561-2009, ekane@fostereprints.com ELECTRONIC REPRINTS: pcdf_reprints@upmediagroup.com LIST RENTAL: Jennifer Schuler, 918-496-1476, fax 918-496-9465 WEBINARS: Frances Stewart, 678-817-1286, fstewart@upmediagroup.com, pcbshows.com/webinars CIRCULATION DIRECTOR OF AUDIENCE DEVELOPMENT: Jennifer Schuler CIRCULATION AND SUBSCRIPTION INQUIRIES/ ADDRESS CHANGES: fax 918-496-9465, jschuler@upmediagroup.com UP MEDIA GROUP, INC. 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Table of Contents Feed for the Digital Edition of Printed Circuit Design & Fab - January 2008

Printed Circuit Design & Fab - January 2008 Contents Our Line Market Watch Around the World Happenings ROI PTH Reliability: Designing to Improve PTH Reliability EMC for the Real World PTH Reliability: The Survival and Long-Term Reliability of Lead-Free PCBs iNEMI's Emerging Technologies: Research Priorities for the Electronics Industry Printed Circuit Design & Fab Annual Buyers Guide Special Suppliers Section Guide to Products and Services Off the Shelf: Designcon Preview Marketplace Ad Index BGA Bulletin

Printed Circuit Design & Fab - January 2008

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