bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Toh Han Shih

THE LABOUR  shortage in the Pearl River Delta is continuing as manufacturers find that increasing salaries is not enough to draw migrant workers to Guangdong.

Samson Chan, chairman of the Hong Kong Toys Council, said that toy factories in the delta were facing labour shortages of about 15 per cent to 20 per cent, according to feedback from 20 to 30 Hong Kong-owned toy factories in the region.

Hung Chia-sheng, general secretary of the Taiwanese Merchants Association in Shenzhen, said most Taiwanese investors are finding it difficult to hire qualified workers for their factories.

'The shortage is probably not as bad as last year, but it is still a serious problem,' he said.

'Many Taiwanese investors are having trouble getting suitable workers even after raising their salaries.'

Although the PRD is one of China's most dynamic manufacturing and export centres, it has been hit by the labour problem since last year. Many migrant workers have returned home and are reluctant to come back.

Mainland media estimate the region is short of as many as one million workers. Officials say low salaries and bad working conditions are the main reasons for the lack of interest.

But Mr Hung said salaries were not the only issue. Rampant crime, limited training opportunities and a lack of entertainment have also been deterrents.

'It's not just about salary. We have all raised our salaries this year, but that doesn't solve the problem,' he said. 'Many workers told us they don't want to come to the PRD because the overall environment here is not as good as it is in the Yangtze River Delta (YRD).

'The crime rate here is higher than it is in the YRD, and many workers said they worried about safety. Professionals prefer to go to the YRD, saying the social environment there is more cultured and sophisticated.'

The YRD has been China's cultural centre for years. In an government research paper last year, it was noted that the YRD region is attracting more professionals and skilled workers than the Pearl River Delta on the strength of its 'strong cultural environment'.

Zhang Libing, a mainland labour expert, said many migrant workers chose the YRD because of its training institutes and cultural tradition.

'Shanghai and nearby cities have first-class schools and training centres,' she said.

'They have a strong tradition of education. Workers feel they can learn more by going there than coming to the PRD.'

The labour shortage has driven up production costs and protracted delivery times.

'Previously, when there was no labour shortage, the time between a factory receiving an order and delivery to the United States was typically 30 days, but that has been lengthened to 45 days,' Mr Chan said.

While factories scramble for skilled labourers, the turnover rate is surging.

'The turnover rate used to be between 5 per cent and 8 per cent, but now it is between 15 per cent and 20 per cent,' said Mr Hung, who also runs an electronics factory in Shenzhen.

'The constant loss of workers means we have to keep training new staff and that's causing a disruption to our production.'



Higher salaries fail to fill all empty seats