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South China Business Journal
LEADERSHIP
EVERY FIRST MONDAY of September, employees in the Demographic trends will soon lead to a shrinking labor pool
United States take a break from their normal work sched- in China - businesses will be competing for the best work-
ules to celebrate Labor Day. Falling on September 5 this year, ers and the companies that can offer fair compensation and
we take the time to commemorate the social and economic good conditions will attract the top people. Although Chinese
achievements of American labor and reflect on the contribu- companies are not directly subject to U.S. labor laws, global
tions of workers in creating a vibrant and innovative economy. finance and supply chains have brought Chinese manufactur-
It is a good time to remember that American laborers did not ers, especially those here in Guangzhou, closer to American and
always have the rights and protections that they enjoy today. other foreign consumers. South China is the destination for
The Labor Day holiday is also an opportunity for employers to one-third of all foreign direct investment into China. Addition-
renew their commitment to fair treatment for all employees. ally, Guangdong Province is a leader in Chinese investments in
the United States. Globalization brings with it larger market
Companies operating in the United States are subject to a opportunities, but companies must be increasingly sensitive to
variety of laws which regulate wages, prohibit child labor and overseas market trends. Foreign consumers, including those in
gender-based wage disparities, give workers the right to be the U.S., increasingly seek out and pay a premium for products
represented by a union, and guarantee safe working conditions. made under fair working conditions. Companies and suppliers
These laws have evolved over time to better reflect the needs that invest in improving working conditions will see long-term
of workers in a modern economy. The U.S. Department of benefits.
Labor regularly consults with companies, unions, other public
institutions, and NGOs to update labor standards and ensure As members of the American Chamber of Commerce – U.S.
labor laws are implemented. This collaboration and feedback companies, suppliers, buyers and investors alike – in one
process is critical to progress - government has a role to play way or another, you are a part of the “U.S.” brand that carries
in guaranteeing certain rights that wouldn’t be protected a certain set of values. Working conditions at American
relying on the free market alone. For those of us who enjoy companies are the gold standard, but our companies have to
the balance of a 40-hour week, this came about as the result of maintain that standard and lead by example through providing
the efforts of organized labor. Companies have also benefited proper benefits and maintaining workplace standards. I
from these labor laws, and now support strong protections for encourage you to take steps to ensure that employees in your
their workers. When worker rights are protected, workers are supply chain are treated fairly -- a fundamental U.S. value that
happier, more loyal to their companies, and more productive. is at the core of Labor Day.
Companies that cut corners in worker protections will find
that they are harmed in the long term through increased Charles Bennett
difficulties in retaining labor and lost market share due to a Consul General
poor reputation. Consulate General of the United States of America
Guangzhou, China
2
LEADERSHIP
EVERY FIRST MONDAY of September, employees in the Demographic trends will soon lead to a shrinking labor pool
United States take a break from their normal work sched- in China - businesses will be competing for the best work-
ules to celebrate Labor Day. Falling on September 5 this year, ers and the companies that can offer fair compensation and
we take the time to commemorate the social and economic good conditions will attract the top people. Although Chinese
achievements of American labor and reflect on the contribu- companies are not directly subject to U.S. labor laws, global
tions of workers in creating a vibrant and innovative economy. finance and supply chains have brought Chinese manufactur-
It is a good time to remember that American laborers did not ers, especially those here in Guangzhou, closer to American and
always have the rights and protections that they enjoy today. other foreign consumers. South China is the destination for
The Labor Day holiday is also an opportunity for employers to one-third of all foreign direct investment into China. Addition-
renew their commitment to fair treatment for all employees. ally, Guangdong Province is a leader in Chinese investments in
the United States. Globalization brings with it larger market
Companies operating in the United States are subject to a opportunities, but companies must be increasingly sensitive to
variety of laws which regulate wages, prohibit child labor and overseas market trends. Foreign consumers, including those in
gender-based wage disparities, give workers the right to be the U.S., increasingly seek out and pay a premium for products
represented by a union, and guarantee safe working conditions. made under fair working conditions. Companies and suppliers
These laws have evolved over time to better reflect the needs that invest in improving working conditions will see long-term
of workers in a modern economy. The U.S. Department of benefits.
Labor regularly consults with companies, unions, other public
institutions, and NGOs to update labor standards and ensure As members of the American Chamber of Commerce – U.S.
labor laws are implemented. This collaboration and feedback companies, suppliers, buyers and investors alike – in one
process is critical to progress - government has a role to play way or another, you are a part of the “U.S.” brand that carries
in guaranteeing certain rights that wouldn’t be protected a certain set of values. Working conditions at American
relying on the free market alone. For those of us who enjoy companies are the gold standard, but our companies have to
the balance of a 40-hour week, this came about as the result of maintain that standard and lead by example through providing
the efforts of organized labor. Companies have also benefited proper benefits and maintaining workplace standards. I
from these labor laws, and now support strong protections for encourage you to take steps to ensure that employees in your
their workers. When worker rights are protected, workers are supply chain are treated fairly -- a fundamental U.S. value that
happier, more loyal to their companies, and more productive. is at the core of Labor Day.
Companies that cut corners in worker protections will find
that they are harmed in the long term through increased Charles Bennett
difficulties in retaining labor and lost market share due to a Consul General
poor reputation. Consulate General of the United States of America
Guangzhou, China
2
