Squeezed by high costs and unpredictable demand, some factories in the southern manufacturing heartland are turning to a new strategy to survive: hiring workers by the day.
It is a far cry from Beijing’s vision of a slick, hi-tech manufacturing future of computers and chip makers: on a warm morning in the southern town of Shiling, dozens of workers gather on a city street to haggle for a day of work making bags for US$20 to US$30.
Factory owners in this leatherworking town and in those nearby say just-in-time labour allows them to stay competitive, even if day wages can be higher, individually, than full-time salaries.
Workers operating in a legal grey area say they tolerate the conditions because many fear factories offering permanent jobs could fail to pay if clients dry up and the manager runs off.
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“We never used to hire temporary workers because labour costs were not very high. Our workers were on staff,” said Huang Biliang, who runs a button factory in Dongguan.