An interesting phenomenon is taking shape in Japan, long known as the land of lifelong job security. The workplace is transforming, more companies are willing to let workers go, and salaries have stagnated or declined. As a result, more and more Japanese, such as Hiroko Yokogawa (above), are taking on second and third jobs. In fact, a startling 17% of workers between 20 and 50 have a side job. Lack of Security Leads Japanese to Seek 2nd Jobs - NYTimes.com
If you've never heard of Hon Hai before, you should. Hon Hai is the world's biggest electronics contract manufacturer. Its factories produce iPads, iPhones, and other PCs, videogame consoles, printers, cell phones and other electronics for Dell, HP, Sony, Nokia, and Nintendo. The company's revenue will reach $85 billion this year, and it has grown tremendously -- it is 30 times bigger than it was a decade ago, and this year has cut back it's forecast growth -- from a historical trend of 30% to "only" 15%. In China, Hon Hai is the largest private employer and the third largest employer overall. Now, the company is betting big in China, with plans to invest $3.5 billion in new facilities in China's inland. Within two years, 50% of Hon Hai's workers will be in inland China, up from 20% today. Eventually, the company expects it will have 1.5 million employees on its workforce.
The average factory worker in Vietnam makes $136 a month, in Indonesia it's $129 a month. In China? $413 a month. As wages continue an upward spiral in China and the country moves further up the value chain, companies are scrambling to line up lower cost factories in Southeast Asia. Corruption and infrastructure problems continue to impede growth in the region, however.
China has the reputation of being the world's factory, where insanely low labor rates make it attractive to make things for consumers. As the economy matured, however, it was only a matter of time before other countries started to look cheaper than China.
This is already happening in the labor-intensive apparel industry. A lot of Coach bags are made in China since labor is cheap there. So are products made for Ann Taylor and Guess. Recent wage increases in China, however, are forcing these manufacturers to look at India, Vietnam, Cambodia and Indonesia as alternatives.
Workers at this soap plant in China are paying more attention to how the soap is packaged so that the packaging is more environmentally friendly, including a switch away from styrofoam. The reason isn't entirely altruistic -- it's because Wal-Mart insists on it. The giant retailer -- which if it was a country would be China's fifth largest export market -- is insisting that all its suppliers, including ones in China, clean up on environmental and labor practices in order to keep Wal-Mart's business. It's a great example of companies affecting social change when governments are unable -- or in the case of the United States, unwilling -- to do so.
