Wage Rate Comparisons
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Human Resource considerations for International Business Management
 
updated 2016 April 14
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see also    witiger.com/marketing/motivation.htm
               witiger.com/marketing/measuring-human-capital.htm
                witiger.com/internationalbusiness/HRforIB.htm
 
. This page used in the following courses taught by Prof. Richardson
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MGTC41
MGTC44, MGSC44
MGTC46, MGSC44
CCT224
MRK460
IBM 600
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Compensation  Compensation for factory workers in China

Factor workers in China, making toys for Mattel, make (2015)
$ 1.20 - $1.60 a day

1,600 Yuan per month (about $320 dollars)


photo from
http://www.telegraph.co.uk/news/worldnews/asia/china/3363293
/Chinas-toy-makers-face-bleak-Christmas-as-factories-shut-down.html

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Compensation  Compensation for factory workers in China


from the blog of Prof. Mark J. Perry, University of Michigan
http://mjperry.blogspot.ca/2011/11/wage-gap-with-china-continues-to-shrink.html

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Compensation varies Compensation varies

Software development in India costs $15-$20/ hour including the cost of the hardware, software and a satellite link. Compare this with $60-$80/ hour in the US
- still true in 2009?

from http://home.alltel.net/bsundquist1/gcib.html
Foundry workers (casting metal things) in India earn $1 for working an 8-hour day

Mexican auto industry wages and benefits average $4.00 hr, vs. $30 hr in the US

Despite seemingly low wages and wretched conditions, Mexico is losing garment assembly jobs to Central America, call centers to Argentina, data processing to India, and electronics manufacture to China
Joel Millman, David Luhnow, "Decade After NAFTA, Prospects for Mexico Seem to be Dimming", Wall Street Journal, 2003
Japanese companies can hire 3 Chinese software engineers for the price of one in Japan (Thomas L. Friedman, "Doing our homework", Pittsburgh Post Gazette, 6/25/04).

Vietnamese Nike workers earn $1.60/ day, while three simple meals cost $2.00

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Labour costs in China
 http://factsanddetails.com/china.php?itemid=367&catid=9&subcatid=60#410
Jeffrey Hays explains
"One of Chinaís problems is that while it produces lots of low skill factory jobs it isnít creating enough good job for college graduates."

reliable figures - there are none
"Wages in northern China are as much 20 percent lower than those in southern China."

2010 Beijing city government raised the minimum wage by 20 percent to $141 a month.

2012 Shanghai, China's richest city, increased the wage by 13 percent to 1,450 yuan ($230) a month starting in April 2012,

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student Yingyan X. in MRK460 in March 2014 provided some updates on wage rates in China. Labour costs in China

source:  http://www.tradingeconomics.com/china/wages-in-manufacturing
which is in turn sourced from the National Bureau of Statistics of China
- validity - generally speaking, students should appreciate that any time statistics are provided by a government agency the degree of accuracy is always effected by the "political environment".

Yingyan summarizes saying
"In 2013, the average yearly wage in China is 41650 CNY, which is approximately 6700 USD. However, ten years ago, the yearly average wage is much lower: in 2004, the average yearly wage in China is 14033 CNY, which is  approximately 2300 USD. "
 

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Labour costs in various major cities of the world compared 
- based on U.S. dollars per hour

supplied by student Ashok S from MGTC44 in March 2010

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Labour costs in various countries compared to South Korea

source: http://www.global-production.com/scoreboard/indicators/labourcost.htm

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Labour costs in various European countries compared to Germany
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Labour costs in various countries compared to  Canada
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Labour Laws, Rules and Regulations Labour Laws, Rules and Regulations

Minimum wage in Mexico is $0.50/ hour. In one US auto plant in Mexico, the workers went on strike. The Mexican police shot several and put the strikers back to work-and cut their wages 45%.

Nobody has ever been shot by police for being on strike in Canada !!!
 

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