employment issues in china powerpoint
Post on 17-Oct-2014
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This is my group presentation addressing employment issues in China based on my trip.TRANSCRIPT
Employment in China
What are the motivation and drivers for the individual?
GuanxiGroup Members:
Ryan MotilallNelson Pacheco
Joseph ThomMJ Sandretsky
Employment is different in China not only because of their culture
But for the sheer amount of people creating a massive workforce
Employment TopicsGuanxi
by RyanLegal Framework
by JoeCompensation
by MJThe Future of Employment and its Implications
by Nelson
Guanxi: It’s who you know
The Definition of GuanxiExample of GuanxiGuanxi vs. Bribe
The Definition of Guanxi
Guanxi is a personal connection between two people strategically persuading and utilizing one another to perform a favor or service.
Guanxi is usually not used to describe
relationships within an immediate family.
Example of Guanxi
Guanxi vs. Bribe
The difference between an acceptable gift and improper bribe.
Three criteria most commonly considered for
bribes in China.
Legal Framework
Legal Framework
• Key elements of Labor Contract Law• Labor Unions• Everyone is a sole proprietor• Labor relations
Law Key elements of Labor Contract
TermOther ProtectionsPenalties
Labor Unions
All-China Federation of Trade UnionCollective BargainingWorking Conditions
Everyone is a sole proprietor
Entrepreneur SpiritSmall RetailersProfessionals
Labor relations
Workers response to privatization
DisputesOutlook
Compensation
Issues Affecting Compensation
• Pay scales in China• One Child Rule• Income taxes• Retirement• Health Care• Housing
Pay Scales in China
Average pay in China $2400 annuallyPay in particular jobs for comparison
Teachers make 1500-2000 RMB Professor make 3000 RMB ($439) monthlyDoctor makes average $10,000 annually
Changes since their recession 1997Difference in pay between Tiers120 Million migrant workers making 500
RMB ($73) monthly in a cityKeep in mind cost to live is much cheaper
than here
One Child Rule Consequences
How the rule worksGovernment employeesHow it is being skirted in tiers 2 and 3 and western regions
Exceptions to the ruleEffect on families and future
Taxes: They pay up in China too
Income taxesRetirement deductionHealth care deductionGovernment requirements
Retirement: China’s Social Security
The system in ChinaRetirement age is 50 for women and
60 for menAging population and one child rule
affecting the solvency of China’s planHow paid to retireesMigrant workers cashing in
State Health Care for the Masses
Health CoverageState Facilities Private Health Insurance
Health Care Reform Western vs. traditional Chinese medicine (TCM)
Housing is their biggest expense too
Rising cost of Housing in CitiesMortgagesGovernment controls of cost in
market driven housing
Future of Employment and Business Implications
The new generation of leadership in China
• Everyday many Chinese students are graduating from the universities to become and accept the challenges of a new generation of Leadership in Business and Management in China.
• Chinese Blue-collar workers are no longer willing to labor for low wages in manufacturing.
• Chinese workers have lost the fear of going hungry, so they have become more selective about employment.
• At the white-collar level, most multinationals need to rethink their human resource strategies.
• The overwhelming reason younger white-collar workers leave their jobs is not because their salaries are too low but because they see no career opportunities there.
• The participation of women at the workplace arena has increased substantially.
• Companies need to have local leaders who are paid as much as foreigners
• They need training programs, overseas rotations and clear
paths for advancement.• Young workers are demoralized knowing that expatriates
get excellent pay packages at places where there are no mainland Chinese executives.
China huge economic leverage
• China's rapid economic expansion outpaces growth in the United States, 8.9 percent in the past quarter versus 3.5 percent in the U.S.
• China is the dominant regional player in northeast Asia area.
• China’s economic expansion has led to a demand for raw materials from countries around the world.
• Rapid expansion of China's presence in countries such as Guinea, Myanmar, Sudan and Venezuela. Despite the controversy of some human rights groups that have said that China is taking direction to some repressive regimes to secure its access to important raw materials.
• Since barriers and differences are evaporating. We are living in a global world now where barriers are meaningless and the world, in a business sense it is flat.
• Regardless what kind of business you are in, you will be affected by what is happening in China.
• China consumes both human and natural resources at an amazing rate.
• All businesses today better start preparing for this competitive dragon that will change the balance of power in the world.
“Study and work hard, because someone in China wants your job.“
Gregory P. Smith
Thank you for your attention
Questions?
References Cai, A. (2006, July 21). China's Pension system faces major reform. Asia Times . China Average Salary Income. (n.d.). Retrieved Nov 14, 2009, from
www.worldsalaries.org: http://www.worldsalaries.org/china.shtml Fu, M. (2009, Nov). (R. Motilall, Interviewer) Leung, T. (2009, Oct / Nov). Project Manager. (M. J. Sandretsky, Interviewer) Naim, T. (2006, Summer). Time to Share. The Recorder , p. Special Report. Salary - Teach China. (n.d.). Retrieved Nov 2009, from Abroad China:
http://www.abroadchina.org/salary.asp Systematic government theft of migrant workers' retirement pensions. (n.d.).
Retrieved Nov 14, 2009, from China Labor News Translations: http://www.clntranslations.org/article/31/systematic-government-theft-of-migrant-workers-retirement-pensions
Tax System in China. (n.d.). Retrieved Nov 2009, from Wikipedia: http://en.wikipedia.org/wiki/Tax_system_in_China
Zhang, J. (2009, Oct). Tour Guide. (M. J. Sandretsky, Interviewer) Arbitration Needed. (2009, July 30). Economist . Dickinson, S. M. (2008, November 8). Power to the People. China International
Business . Wang, J. (2009, October). Licensed Tour Guide. (J. Thom, Interviewer)