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Sun, Nov 08, 2009 - 12:27 AM EST  —  AAPL: 194.34 (+0.3099, +0.16%)  |  NASDAQ: 2112.44 (+7.12, +0.34%)

Chinese government orders iPod manufacturer Foxconn to let workers unionize
Friday, September 01, 2006 - 01:22 AM EST

Apple Store"The Chinese government has ordered a Chinese supplier of Apple's iPod to let its more than 200,000 workers set up a trade union, reports said Friday," Elaine Kurtenbach reports for The Associated Press.

Kurtenbach reports, "Hongfujin Precision Industry Co., embroiled in a debate over its labor practices, is on a list of companies in the southern city of Shenzhen that have been ordered to set up such a union, which would be affiliated to the government's All-China Federation of Trade Unions, the official Xinhua News Agency reported."

"China does not allow independent labor organizing, but in recent years it has been pushing companies with foreign investors to allow the state-sanctioned labor groups. They traditionally have been allied with management," Kurtenbach reports. "Many foreign companies have already allowed such unions to be set up in their China operations."

Full article here.

MacDailyNews Take: A state-sanctioned Chinese union? Is that anything like an Irish enchilada or is it closer to Fijian snowshoes?

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Sep 01, 06 - 12:33 am Comment from: Jack

Apple changing the world again...

Sep 01, 06 - 12:36 am Comment from: MacBill

That's a surprise. In a backwards country that doesn't allow free speech, and censors their own news & history & Internet search results, they're actually letting these workers unionize??

Sep 01, 06 - 12:50 am Comment from: Jake

These are not INDEPENDENT unions; they are official unions controlled by the government/party. China bans independent unions, as the article notes. These are just a sham.

Sep 01, 06 - 12:54 am Comment from: Lucas

MacDailyNews Take: A state-sanctioned Chinese union? Is that anything like an Irish enchilada or is it closer to Fijian snowshoes?

Good one, MDN! Funny and incisive!

Sep 01, 06 - 02:45 am Comment from: John

Not funny MDN. A state run union is akin to big brother.

Sep 01, 06 - 06:08 am Comment from: Thorin

"Not funny MDN. A state run union is akin to big brother."

What's wrong, are you afraid China might turn communist? tongue rolleye

Sep 01, 06 - 07:03 am Comment from: maczealot

China now permits trade unions for workers of foreign owned companies; however, the typical Chinese worker employed by native or government run companies apparently do not have this privilege. Communistic ideals are highly selective or maybe not, I really don’t know much about labor laws or their enforcement in Mainland China. If the Chinese government treats its unionized workers like they treat the environment, I wouldn't expect China to lead the way in labor relations. Apparently, the lack of environmental protection in Mainland China from rampant industrialization is not a significant concern to certain foreign investors or certain board members of certain foreign companies.

Sep 01, 06 - 07:29 am Comment from: LordRobin

China is really communist in name only these days. Really, their goverment is more of a generic "dictatorship by committee". (There's gotta be a word for that, but I don't know what it is.) "Communism" is just the banner the dictatorial group hides behind. They're all about makin' the money these days, as long as the one party remains in absolute power.

Sep 01, 06 - 07:46 am Comment from: moiety5

Oligarchy.

Sep 01, 06 - 07:49 am Comment from: Thorin

LordRobin,

Yes, I agree. It is a strange blend of

"socialist capitalism", but concerning

an issue such as this, it's all about

state control, so yes they are communist.

Sep 01, 06 - 08:16 am Comment from: Government Policy

The ChiCom (Chinese Communist as opposed to Taiwan, R.O.C.) are mandating them throughout China. These are not independent unions that represent workers, they are essentially extensions of management & the government as an element of control of both the workers and the management.

My Take-Lipstick on a pig

Sep 01, 06 - 08:38 am Comment from: ron

Now they can slow down to one speed---dead slow and stop.

Sep 01, 06 - 09:40 am Comment from: maczealot

If the ruling class in China calls themselves communist, who am I to disagree, I'm not a political scientist. Of course, some have theorized that facism and communism are more alike than different in many of their core beliefs.

Sep 01, 06 - 11:04 am Comment from: Gregg Thurman

A state-sanctioned Chinese union? Is that anything like an Irish enchilada or is it closer to Fijian snowshoes?

Before making fun of a Chinese union, you might want to know what you are making fun of.

Like all communist countries China had 100% employment, and that was the problem with their economy.

Liberals want 100% employment, but never consider the consequences. Everybody is NOT equally endowed with skills and work ethic. When unemployment dips below 6% industry is forced to hire the dregs of the labor pool These people require more initial training, more ongoing training, and more supervision. Bottom line is that they cost far more than their wages and benefits, which increases the cost of production. In other words, hiring them is inflationary.

China's unions are much like those in Switzerland (a country you wouldn't make fun of). In Switzerland, unions and managment work together such that increases in pay is coupled to increases in productivity. The relationship isn't one sided as it is in the US, where unions say "pay us or we'll go on strike", without ever considering rule changes, or plant modernizations, that would increase productivity thereby keeping the cost of production the same as before. Any attempt at that leads to immediate threats of strike by the union.

Today's factory worker is better off financially than mid-management was 15 years ago. They have a long way to go before they are on par with western economies. But keep this in mind when you criticize the Chinese government: China is a country of 1 Billion people that because of communist doctrine had 100% employment and the resultant low wages that went with it. They are managing a political/economic sea change far more difficult than turning the Titanic.

Sep 01, 06 - 01:06 pm Comment from: Mr. Mao Tse

Please refrain from your anti-China talk. We are now censoring your website from Chinese people.

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