Shop Talk

Check Out Line: End of “cheap” labor in China?

Ben Klayman

Jun 10, 2010 12:48 UTC

Check out workers in China angling for a bigger slice of the economic pie.

The labor unrest that began in China’s richer areas among foreign firms is now spreading to poorer, interior regions, as a new generation of workers seek a bigger portion of the nation’s growing wealth. What impact could that have on companies that have flocked over the decades to China, drawn by the low manufacturing and labor costs, as well as one of the world’s biggest and fastest growing economies?

Japanese automaker Honda and iPhone maker Foxconn International have dealt with high-profile strikes recently, and now a Taiwanese sports goods supplier and a Japanese sewing machine maker, both some distance from China’s wealthier regions around Hong Kong and Shanghai, have seen worker strikes. Resolutions of strikes at Honda and Foxxconn resulted in pay raises of 66 percent and 20 percent, respectively.

The burst of strikes and work actions is a worry for China’s ruling Communist Party, which has long discouraged worker action and punished protesters. However, a senior China trade official said the country’s rising labor costs would not deter foreign investors because policies to boost domestic consumption offer a new reason for them to seek profits.

Honda wants to restart its auto production in China, while Foxconn hopes to raise prices to offset higher wages. That could affect the consumer if prices of the final products rise in step.

Mattel launches My Meebas as Barbie stumbles

What would Mattel wish for if it had one wish to make? The launch of the toy giant’s “My Meebas” points to one possibility — better fortunes for its girl’s toy business, as Barbie sales continue to face trouble.

Mattel launched “My Meebas” — a toy for girls aged 6 to 12 that houses a plush “Meeba” in a plastic tube, which serves as a gaming device with a movable LCD screen.

Check Out Line: More for the Man’s Wardrobe

Check out new offerings for men from DKNY.

Fashion House Donna Karan International reached a licensing deal with Liz Claiborne to create a new line of men’s sportswear for the United States and Canada.

The collection, to include knits, trousers, blazers and coats, will be targeted to the “better” segment, with articles priced from $59.50 to $595. It will be available in department stores in fall of this year.