Factories Shut, China Workers Are Suffering
The global financial crisis and export slowdown is affecting thousands of factories in China, leaving many factory workers without jobs. At least 67,000 factories were closed this year, including a shoe factory in Pearl River Delta where 2,000 workers were left jobless after the factory chairman fled. The closings have generated heavy labor strife and disputes over issues such as back wages and the severance pay guaranteed under new laws. Chinese authorities have attempted to pay back wages for some, but have allegedly jailed and beaten others for protesting. The government also recently revealed a $586 billion stimulus plan to help alleviate the economic downturn and prevent foreign factories from moving elsewhere as costs in China increase. In the mean time, many factory workers have left the coastal region and headed home.
See "Factories Shut, China Workers Are Suffering", Edward Wong, The New York Times, November 13, 2008