1,000 RMB X 125$ US Dollars

Living on 1,000 RMB a month in Shanghai

Just recently, we came across a report from December 2006 about the lives of seven individuals, each making 1,000 yuan (US$128) per month, living in seven different Chinese cities. The cities included Beijing, Shenzhen, Xi'an, Changchun, etc., as well as our own city of Shanghai. The following is our translation of the interview with Xiao Nao, who lives in Shanghai. Although it was published in December, some of the references (like taxi fares) lets you know the interview took place some time before that:

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How Much Do Workers Make In China?

The Nameless Factory Worker

written by John Chow

This is where many young village girls end up if they leave the family farm. China has thousands of factories that manufacture every product known to man (and some that are not known). These factories employ a mostly female workforce because women are easier to control.

The workers are paid an average of 1000RMB per month plus housing and food. Since these factories are huge and the only things near by are more factories, there’s really no where for the girls to spend their money. Most will send the funds back home to help their families.

The jobs are very repetitive and I’m sure extremely boring. However, it pays many times more than working on the farm back home. Add in the fact that the living costs are zero since the company provides food and housing and the girls find themselves in a situation many American workers can’t seem to reach – positive cash flow.

The Nameless City Worker

Jobs in the city pay more than jobs at the factories. However, the cost of living in the city is much higher as well. It’s not uncommon to find 4 or 5 people sharing a small apartment. Most unskilled jobs in Shanghai pay 1000 to 2000 RMB per month. Because of the low wages for unskilled workers, business create a lot of redundancy by employing a bunch of them. The restaurant industry is a prime example. They’ll have multiple greeters at the door and who knows how many more waiters inside. On our train ride to Suzhou, there was a greeter at every single train car.

While the unskilled city worker may have access to far more entertainment choices than one of the 250,000 workers at the iPod factory, they generally don’t make enough to really entertain themselves.

The English Speaking Worker

In a city like Shanghai, being able to speak English opens up a world of new possibilities for the Chinese worker. Speaking English also means more money – 3000 to 5000 RMB per month. For example, in order to work at the Grand Hyatt Shanghai, all employees (except cleaning staff) must be able to speak English or another language. The Grand Hyatt pays a lot more than a local hotel. Then again, they charge a ton more too!

A worker can make more money if he has a collage education. However, even if the worker is unskilled, as long as he can speak English, he’s worth more than three times an unskilled worker.

The Western Educated Worker

At the high end of the working class is the western educated worker. An English speaking employee with a western education is highly prized in China. Wages start at 17,500 RMB per month and many times, the company will pay for all or part of the housing cost. In a country where the average factory wage is 1,000RMB per month, starting at 17,500 puts these workers in a very elite class.

It used to be that most western educated Chinese student would stay in the West after graduation because the opportunities are greater. However, this is no longer the case and most students now choose to return home after getting their degree. Look at it this way. A new grad will make the same wage working in the US or China. However, the wage of the new grad in the US isn’t 17.5 times greater than the average US factory worker. Chances are, the US factory worker makes more than the grad.

The great need for educated employees has allowed many US and Canadian citizens to seek work in China. You can expect your wages to be about the same as what you would make working at home. However, because the cost of living is so much lower, you can live pretty high on the hog. That is, as long as you stay away from Pudong.

Can American Workers Compete?

Cultural Differences: Can American

Workers Compete?

Written by bianxiangbianqiao on Tuesday, February 10th, 2009 at 6:06 pm
Filed under:culture, media |Add comments

With the Big Three US auto makers begging the US government to bail them out of bankruptcy, there have been many images on TV and in newspapers of American auto workers at the production line. I watched closely and unconsciously compared them with images of Chinese and Japanese workers, mostly from the same media outlets. My brain computed a couple of differences between images of American and Chinese industrial workers. The most striking difference is that the American workers at the big three auto plants were not wearing uniforms. I saw many t-shirts and jeans on the floor, of different colors, styles and designs. Some of the workers’ clothing bore writings of little relevance to the work environment, the work they were doing or their identity as participants in the production process. I saw sneakers on the workers’ feet, but no hat on their heads. The Chinese and Japanese workers I saw on TV wore uniform, complete with matching hats that seemed to be fashioned after the American baseball hat. The Chinese preferred color for workers’ uniforms seems to be sky blue. The Japanese preferred color seems to be light brown. I understand the American culture of individualism and personal expression. However, when you are working at a billion dollar plant, you need to have some focus, and conduct yourself differently than working in your backyard on a Sunday afternoon. Anther difference between American and Chinese workers I noticed in the images is the way they work. The Chinese workers apply their mind and body, mental and physical energy to their work. This attitude shows up in the speed, precision and efficiency of their body movements, especially hand-eye coordination, and the focus and application in their facial expressions. In the Japanese workers, I see an additional element in their attitude, pride. In the American workers, I see some indifference, some disinterest. They are just going through the movements, like poorly programmed robots. Of course this is no a new observation. In the 1990s the Chairmen of Toyota and Honda got their companies into big trouble with the American congress for unflattering remarks about Americans’ inability to make good cars because of their workers’ poor work ethics. They hurt the feelings of the American people. I think the Japanese proved themselves right in that Americans have been unable to make good cars. But they are wrong in attributing the cause to the American work ethics. I say this because I have seen my American students work very hard outside of school, collecting tickets at theaters, bagging groceries, checking out customers at Wal-Mart etc. As a group, mainstream Americans’ work ethics is as good as any group I have seen, including the Chinese. I think part of the cause of the poor performance of the American manufacturing sector is that in the US professionalism is monopolized by people with “professional” jobs, doctors and airplane pilots, but does not generalize to industrial workers (the so called blue collar). I see this differential distribution of professionalism in the two countries in my recent trips to China. The difference starts at the border control. The American immigration officer that checked my passport greeted me with a boredom that clearly suggested he or she was meant for something much better than what he/she was doing. On the other hand, the Chinese officers at Beijing and Shanghai airports greeted me with enthusiasm and smiles. This impression continued in my travel in China. On the D-trains from Beijing to Shanghai the young women conductors with the soft Shanghai accent were much more professionally groomed, spoken, uniformed, capped and responsive than the stewardesses of United Airlines flying from Chicago to Beijing. I was also impressed by the police officer onboard the train that walked through the corridor urging the passengers to wake up and watch their bags when the train approached every station. Of course my observations are incomplete and biased because they are anecdotal. I admit that. My impression is that in China and much of East Asia ordinary people take their work seriously and with a sense of pride. In the US only people with “professional” jobs approach their work with professionalism.

American workers can call their Chinese counterparts “cheap” and blame them for taking away jobs. But my question to the American workers is “are you really worth that much, judging by the way you work?” Capitalism will make the final judgment. We shall see.
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