How to deal with China factory workers’ overtime

Many factories facing difficulties in workers’ overtime in accordance to local labor law, so how to tackle and compromise it all depends on your factory’s culture.

You can first understand on my previous article “how-to-boost-productivity”, “how-to-tackle-china-labor-laws-4″ and “China-government-officer-factory-visit-3″ to get a better picture on my below explanation. Most factories will use double book-keeping to keep track of workers’ payroll but also escape from local labor law and human rights compliance from buyer. If you using the traditional way in recording on a data sheet I would say you would easily get caught by compliance officer, facing sabotage from your workers or conspiracy from supervisor in favoring their workers’ getting higher pay. Some factories would use computerised payroll system to monitor additional overtime and printout separate payroll to worker. Legal normal working hours payroll will bank into workers’ personal account and illegal working hours overtime payroll will pay in cash. This will give you better control in documentation from leaking out and better accuracy in attendance and calculating piece rate through bar code system or conveyor system. Paying cash on overtime will not have any documentation proof get hold by workers or stolen, lesser paperwork means safer from leaking out. Management could explain to workers in paying cash could help them escape from China progressive personal income tax hence workers pay lesser tax and factory could escape from local law violation, killing 2 birds with 1 stone.

Remember China workers are willing to work overtime in earning more pay but on condition not forcing them but on their willingness otherwise you will face “China-labor-strike”. So how to compromise? Always use the locals to deal with the locals. I would say use those wanted to work overtime workers to suppress those not willing to work overtime. When factory decided to work overtime make workers sign onto overtime attendance name list, this will protect you not forcing them to overtime but on their willingness for future complain if arises. For those workers who don’t sign on overtime reveal out to others not believing them on future conspiracy complain against factory, why? You must give orders to your middle management once receive complain from Labor Authority will stop all overtime hence directly affecting workers’ income and supervisors’ push money (提成). So everyone in the factory would know if complain lodge to Labor Authority the culprit must be those who not willing to work overtime but only knows how to complain, in result these culprit will not able to gang up with others to go against your factory in workers’ strike!

Some factories will use sub-contract methodology to compromise workers’ illegal overtime but do you aware that rather pay to sub-contractor on higher fees why not gives to your workers, at least better control on quality, shipment date and protection on brand trademark. Unless you have long-term business relationship in hand with sub-contractor then you are safe, never use new sub-contractor to rush order for you, either pay higher price, no liability deduct for defects found, loss of garments and pay cash for goods collection, you don’t believe me you can give a try, no harm because losing money is yours not mine!

Copyright protected by Digiprove © 2010 Cyrus Chang

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