POSTAL DISPENSARY, BHUBANESWAR  REMAINS CLOSED ON SUNDAYS

 – A CLEAR VIOLATION OF THE MINISTRY’S ORDERS -

Dear Comrades,

            After receipt of several complaints on the problems faced by the beneficiaries / card holders of Postal Dispensary, Bhubaneswar this Divisional Secretary had sought for information under RTI Act, 2005 on as many as 20 points from the CPIO – cum – Chief Medical Officer, I / C of the dispensary since a majority of the beneficiaries belongs to this Division. The C  M O I/C replied to the union vide their letter No. PDB / 1-12/09-10(RTI), dated 22.01.2010 . But the union was not satisfied with the reply of the CMO I/C. Subsequently we represented to the appellate authority namely the DPS(HQ) on 17.02.2010. Before receipt of the reply from the DPS ( HQ ), our 6^th Biennial Conference was held from 27.02.2010 to 28.02.2010 and the  Subject Committee, expressing concern  on the problems faced by the beneficiaries of Postal Dispensary, Bhubaneswar , inter alia resolved the issue with due publication in its 6^th Biennial Report, 2010.

            Sj. Mohan Jena, Honourable ( M P ) Lok Sabha, who inaugurated the above Conference assured this union in his inaugural speech to take up all the problems of the postal employees resolved in the Biennial Report  before the competent authorities . He kept his words and wrote a letter on 13.07.2010 especially on the problems faced by the beneficiaries of Postal Dispensary, Bhubaneswar to Sj. Sachin Pilot, Hon’ble Minister of State for Communication and Information Technology, Govt. of India who replied to the Hon’ble M P on 11.08.2010.

            The copy of the  D O No. 24 – 9 / 2010 – Medical , dated 11.08.2010 written by Sj. Sachin Pilot, Hon’ble Minister of State for Communication and Information Technology, Govt. of India to Sj. Mohan Jena, Honourable ( M P ) Lok Sabha is reproduced below for information of the common members.

            While the Hon’ble Minister has replied that the administrative work of the dispensary is looked after by the DPS ( HQ ), the Postal Dispensary, Bhubaneswar avoids to examine the beneficiaries on the plea of performing administrative works and thus squeezing the working hours for the beneficiaries. The beneficiaries are also requested to compare the working hours of the Postal Dispensary, Bhubaneswar with that of the reply given by  the Hon’ble Minister. Surprisingly, when the Hon’ble Minister has replied that all the Postal dispensaries in India  on the line of duty hours observed by CGHS dispensaries remain open on Sundays for 2 hours from 8 AM to 10 AM in winter schedule and from 7 AM to 9 AM in summer schedule,  the Postal Dispensary Bhubaneswar observed closed holiday on Sundays.

            Can you say the Minister is wrong ? – Or anybody else? – Who will reply ?

            However, we have written separately to our Circle Secretary and General Secretary to handle the issue at appropriate levels.

Copy of the  D O No. 24 – 9 / 2010 – Medical , dated 11.08.2010

D O No. 24- 9 / 2010 - Medical

SACHIN PILOT

MINISTER OF STATE FOR COMMUNICATIONS AND INFORMATION ECHNOLOGY GOVERNMENT OF  INDIA, NEW DELHI – 110 003 11 AUGUST, 2010

Dear Shri Jena,

            Kindly refer to your letter dated 13^th July, 2010 regarding problems faced by the postal employees of Orissa Circle.

            I have had the matter examined. With regard to the enhancement of expenditure per beneficiary, the matter is being examined by the Department.

             The working of the postal dispensary has been fixed uniformly in all the postal dispensaries which is on the line of duty hours observed by the CGHS dispensaries.

	Winter Schedule	Summer schedule	Total hours
Normal  day ( Monday to Saturday )	8 am to 2 pm	7 am to 1 pm	6 hours
Second Saturday	8 am to 11.30 am	7 am to 10.30 am	3.5 hours
Sunday	8 am to 10 am	7 am to 9 am	2 hours

.If split duty is introduced, this will reduce the working hours from 6 hours to 5 hours 30 minutes  as deduction of 30 minutes is allowed  for split duty. It will also result in inconvenience to the Medical and Para – medical staff  as in most of the stations  staff quarters are not available  within 1 KM of the dispensary  and the staff will be forced to remain on duty for more than 8 hours on week days at a stretch. In many dispensaries, there is a shortage of regular doctors  and the work is managed  through the doctors appointed on contract basis.

2.         The postal dispensaries are under the administrative control of the SSP-in-charge of the Postal Dn. Or directly under the DPS ( HQ ) of the Circle  Office / Regional Office. The administrative work relating to  the dispensary is looked after by the Divisional Head or DPS (HQ). The timing of dispensary have been fixed in  such a way which is convenient to the beneficiaries of both the serving postal employees, pensioners and medical staff.

3          As regards the empanelment of the private hospitals and diagnostic centers, they are approved by Ministry of Health and Family Welfare  under CGHS / CS (MA ) Rules. The postal dispensaries  only provide outdoor facility  to the beneficiary and therefore private  hospitals and diagnostic centers  approved by the  Ministry of Health and Family Welfare. The serving employees of the Department of Posts  can seek reimbursement after obtaining the treatment  from hospitals / diagnostic centers approved by the Government  where as the pensioners are only eligible for OPD facility.

4.         As regards supply of medicine on the date indent is placed, the approved chemist collects the indents from dispensary based on the prescription of the date  and makes supply of those medicines on next day  if medicines are not available in the stock. There is no willful delay in supply of medicines.

5.         The Ministry of Health and  Family Welfare is the Cadre Controlling authority  of Central Health Service ( CHS ), Central Group-A service  and the doctors in Postal dispensaries are posted by  the Ministry of Health and Family Welfare. The cadre comprises 4 sub cadres viz. General Duty medical officer, teaching specialist, non-teaching specialist and public health specialist sub cadre. In the Postal dispensaries, the doctors belonging to General Duty Medical Officer ( GDMO )  sub cadre are posted. Since the postal dispensaries do not provide in-hospitalization facilities , the department do not feel the need for appointing  specialist doctors on contract basis  and the cases are referred  to specialists in recognized hospitals. This is practice in vogue in CGHS dispensaries also.

6.         The Sixth Central Pay Commission in its recommendations in Para 7.6.16 has recommended merger of postal dispensaries with the CGHS dispensaries  in the cities where both postal and CGHS dispensaries are existing. The Department has sent a proposal  to the Ministry of health and Family Welfare for merger of 19 such departmental dispensaries  with CGHS dispensaries which include  merger  of Bhubaneswar Postal Dispensary with the CGHS Dispensary. The proposal is pending  with the Ministry of Health and Family Welfare for a decision.

7.         Postal Assistants have been assigned  the jobs of System Administrators and Marketing Executives.  The Sixth Central Pay Commission  examined the proposal of the Department  for creation of separate cadre  of System Administrator  and Marketing Executives  but did not recommend  the creation of separate cadre on functional ground. The Sixth CPC further observed  that existing man power  need to be used  for multifarious  functions. The Department has, however, constituted a Committee to examine the cadre restructuring including the jobs handled  by the System Administrators.

            I hope, you will be able to appreciate the limitations placed on the Department in such issues.

            With regards.

Yours sincerely,

Sd/-

 (SACHIN PILOT )

Grand Welcome !

to all following 15 candidates who have come out successful for appointment to the cadre of Postal Assistant in Bhubaneswar Division provisionally against the vacancies of 2009 and 2010

NOTIFIED VACANIES: OC = 06, OBC = 06 , PH = 01, Ex-SM=02

Sl.

No.       Roll No.                       Name and address of                   Community            Remarks

                                                the candidate

1.         BBSR/PA-02/2010         Suman Parida, D/O- A K Parida          UR

                                                MIG- II,45/3 Phase-1HBColony

                                                 CSPur, Bhubaneswar   751016

2.         BBSR/PA-21/2010        Sonali Priyadarshini

                                                D/O- K M Jena, Qr No-E-11

                                                Utkal University Campus

                                                Bhubaneswar 751004                          UR

3.         BBSR/PA-119/2010      Siba Prasad Barik, S/O- D S Barik

                                                At- Raghunathpur

                                                PO-Pariorada Dt- Khurda                     OBC         Selected                                                                                                                               against UR                                                                                                                               Vacancy

4.         BBSR/PA-94/2010        Dumpishree Pradhan

                                                D/O- Maheswar Pradhan OFDC

                                                Ltd. Plot No- A/84 Kharvel Nagar

                                                Bhubaneswar 751001                          OBC       Selected                                                                                                                              against UR

                                                                                                                             Vacancy

5.         BBSR/PA-61/2010         Uttam Kumar Sahoo

                                                S/O- Mahadev Sahoo

                                                At/Po- Gondia, Dt- Dhenkenal              OBC       Selected                                                                                                                             against UR                                                                                                                             Vacancy

6.         BBSR/PA-11/2010         Sumitra Rout, D/O- Sankar Rout

                                                At- Nuaankula, Po- Khuntakata

                                                Via-Athagarh Dt-Cuttack                       UR

7.         BBSR/PA-99/2010        Aditya Devidatta Behera

                                                S/O- A C Behera

                                                At-Nimikihat, Balisahi

                                                PO- Balikuda, Dt- Jagatsinghpur           OBC

8.         BBSR/PA-104/2010       Nihara Ranjan Sahoo

                                                S/O- N C Sahoo, At- H. S. Patna

                                                PO-Kantilo Dt-Nayagarh                       OBC

9.         BBSR/PA-111/2010      Arup Ratan Sahoo

                                                C/O- P C Sahoo

                                                At-Dhabalagiri Po- Sobra Jajpur

                                                Road Dt-Jajpur                                     OBC

10.       BBSR/PA-68/2010        Sagarika Pradhan

                                                D/O- S K Pradhan

                                                Room No.-813 Golden Jubilee

                                                Girls Hostel, OUAT Campus

                                                Bhubaneswar 751003                          OBC

11.       BBSR/PA-69/2010         Chinmaya Kumar Sahoo

                                                S/O- P C Sahoo MIG-192 Kanan

                                                Vihar Phase-II, Bhubaneswar

                                                751024                                                 OBC

12.       BBSR/PA-114/2010       Ripan Asish Senapati

                                                S/O- P C Senapati

                                                At- Birakishorepur

                                                Po- Chandanpur Dt- Puri                       OBC

13.       BBSR/PA-121/2010       Suraj Singh

                                                S/O-Raj Kishore Singh At-

                                                Baharapada Po- Sisua Via-Salipur

                                                Dist- Cuttack 754202                             PH

14.       BBSR/PA-133/2010       Ashok Kumar Sahoo

                                                S/o-R C Sahoo,

                                                F-69, Block-12

                                                IRC Village,

                                                Bhubaneswar -15                                 Ex-SM

15.       BBSR/PA-132/2010      Bhagabata Mohanty

                                                C/O-D K Mahakud

                                                Issan Nagar,Angargadia I.E.

                                                Balasore 756001                                  Ex-SM

               

Divisional Union wrote to Circle Union

to appraise the Circle Administration

for immediate replacement of damaged UPS batteries.

No.      UN-BN/AIPEU-Gr.-C/15-11/2010, Dated at  Bhubaneswar the 19^th November, 2010

Sub:-   Replacement of damaged UPS batteries of computerized post offices in Bhubaneswar Division.

Dear Comrade,

The UPS batteries in many computerized post offices of Bhubaneswar Division are in damaged condition. One damaged battery if not replaced in time will affect the series of batteries in the UPS viz. 16 batteries in a 5 KV UPS. As brought to the notice of this union the batteries of Utkal University MDG, Suryanagar S O , I R C Village S O etc have been out of order since long and after repeated correspondences with the SSPOs by the concerned SPMs and discussions with the union, the SSPOs, Bhubaneswar Division requested Circle Office to do the needful. Circle Office in reply instructed the SSPOs to go for LPC. Accordingly, the LPC was formed and collected quotations were submitted to C O for approval.

But now as known to the union, instead of conveying necessary approval, the Circle Office   intimated to go for central purchase through open tender by C O. But though the matter has been badly delayed no action has yet been taken and the batteries are being damaged one by one. The offices are depending on direct electricity supply and during power failures, counter works are badly affected inviting unnecessary public complaints.

As such, it is requested to appraise the circle administration for immediate replacement of damaged UPS batteries either by giving necessary approval to the LPC or by purchasing centrally to ensure normalcy in counter transactions.

With greetings.

Divisional Union wrote to Circle Union for appraising Circle administration to expedite allotment of projected funds under computerization to Bhubaneswar Division

No.      UN-BN/AIPEU-Gr.-C/14-11/2010,Dated at  Bhubaneswar the 19^th November, 2010

Sub:-   Non-allotment of adequate funds by Circle Office in favour of Bhubaneswar Division under computerization heads.

Dear Comrade,

This is to bring to the notice of the Circle Union that due to shortage of adequate funds the Divisional administration is unable to supply required computer consumables to the computerized post offices at the time of need. There are 34 computerized offices in Bhubaneswar Division including the Project Arrow Offices. Bhubaneswar Division completed computerization in some  double / single  handed offices recently with the old s computers  found surplus from the Project Arrow offices. No new set has been purchased. Thus, the computer peripherals which are being used by these offices are frequently being out of order inviting repairing or replacement. No computerized office in Bhubaneswar Division has stand by consumables / peripherals viz. printer, key-board, mouse etc. Even for change of printer ribbons / cartridges the offices have to wait for approval of the Divisional Office.  This fact has been repeatedly discussed with the Divisional administration with request to supply stand by computer peripherals to all computerized offices and to keep additional stock of computer consumables for instant use by the P Os.

However, at last the Divisional administration vide their letter No. Comp./Network/Fund/09, dated 29.06.2010 requested the Circle Office for allotment of 16,38 090/- to meet the expenditure towards repairing and purchase of needy computer peripherals / consumables for the whole year. But no allotment was given to Bhubaneswar Division till the end of October, 2010. Again, as known to the union,  SSPOs, Bhubaneswar Division vide his letter No. Comp./Network/Fund/09, dated 08.11.2010 apart from reiterating the reasons dated 29.06.2010 has requested emergency allotment of Rs. 100000/- for computer maintenance and another Rs.100000/- for purchase of antivirus and other consumable urgently need.  But the fate of the letter is yet to be known.

Recently 18 more offices have been added under the project arrow category for submission of DET and other reports in Bhubaneswar Division. It is needless to reiterate that while the staff members of the computerized P Os are facing a lot of troubles due to want of computer consumables and using defective / unusable printers, key-boards etc. on one hand, the administration is threatening the staff members for any kind of failure in submission of data etc. irrespective of the quality and condition of computers they use on the other.

Thus, it is requested to appraise the circle administration to expedite allotment of the funds requested by the SSPOs, Bhubaneswar for smooth functioning of the computerized post office.

With greetings.

RESULT OF RECRUITMENT TO PA / S A CADRE  DECLARED

IN ODISHA CIRCLE

Congratulations to all the successful candidates!

Dear Comrades,

As per the scheduled programme the result of the recruitment to the cadre of Postal Assistant / Sorting Assistant for which aptitude test was conducted on 14.11.2010 all over

Odisah Circle

was declared late night yesterday.

The result of the qualified candidates FOR Bhubaneswar Division as per the revised vacancy announced ( except SC & ST ) was declared vide SSPOs, Bhubaneswar Division  Memo No. B.1 / Rectt/2009-10, dated 19.11.2010.( Copy reproduced below ).  15 candidates have come out successful for provisional appointment to the cadre of Postal Assistant in Bhubaneswar Division against the vacancies of 2009 and 2010 subject to satisfactory verification of records.

The complete result sheet of the whole circle can be seen with the following links:

http://www.indiapost.gov.in/pdf/PASA_Result_of_Orissa_Circle_for_2009_2010.pdf

The All India Postal Employees Union, Group-C, Bhubaneswar Divisional Branch congratulates all the successful candidates and welcomes their entry to India Post.

Congratulations!

Ms. Pratima and Ms. Pramila

for winning the bronze at the coxless rowing pair event clocked 7:47:50 seconds to finish third after China and Kazakhstan

at the Asian Games,2010  in Guangzhou, China

Pratima Puhan (19)  from Podabara village of Jagatpur  and Pramila Prava Minz (18)  from Sundergarh won the bronze medal as the first Indian women  in rowing at the Asian Games.

APPLICATION FORMS

FOR RECRUITMENT OF  POSTAL ASSISTANTS / SORTING ASSISTANTS

NOT AVAILABLE IN POST  OFFICES OF BHUBANESWAR DIVISION.

THE SAME CAN BE DOWNLOADED FROM INDIA POST WEBSITE : indiapost.gov.in

            In accordance with the instructions contained in Directorate letter No.60-9/2010-SPB-I dated 18.10.2010, the Chief PMG, Orissa Circle,  vide C.O. letter No.RE/6-12/2010 dated 22.10.2010 intimated that a fresh advertisement for reserved (SC/ST) vacancies is to be made where no vacancy was there to those communities in the earlier advertisement dated 18.08.2010 with further instruction not to take the applications in to account for issuing the Hall Permits in respect of the reserved (SC/ST) candidates for which no vacancy was notified in the earlier advertisement dated 18.08.2010 and to short-list the candidates afresh accordingly to issue the Hall Permits.

            Accordingly, re-notification for 65 remaining vacancies was issued on vide C O letter No. RE / 6 - 12 / 2010 ( Part - II ), dated 08.11.2010  including SC=3 & ST=1 for Bhubaneswar Division  in continuation of the earlier dated 20-8-2010 & Addendum dated 18-9-2010.

            In Para – 2 of the advertisement, it was stated that the prospectus containing the eligibility conditions such as age, qualifications etc., recruitment procedures, prescribed application form and details about number of vacancies to be filled in and the officer to whom applications are to be addressed can be obtained from all the Head Post Offices and important Sub Post Offices/Mukhya Dak Ghar of Orissa Postal Circle on payment of prescribed fee of Rs. 25/- (Rupees twenty five) only by cash at the concerned Post Office counter. 

            But practically the situation is different. No post office including Bhubaneswar GPO is selling the application form. The Division office has failed to supply application forms  to post offices for sell. The intending candidates are seen moving from post office to post office in search of forms. However, as per instructions in Para – 6 of the said advertisements, our staff members are suggesting the candidates attending the P Os to download the same form India Post website and apply before 08.12.2010.

International Trade Union News:

Wages, conditions improve

as workers in China form unions

SHAJING, China — In many ways, Lan Yimin represents the new generation of Chinese factory workers. She wants fair working conditions. Time off to socialize. And a job that pays enough so she can open a milk tea business one day. Lan, 22, is one of millions of migrant workers powering the electronics, furniture and toy factories in China's Pearl River Delta. While she's following in her parents' footsteps on the assembly line, unlike them, she's less willing to "eat bitterness" — as the Chinese call it — and toil away for meager pay and benefits. She has more job options and better access to information. And as China's economy booms, her generation is becoming bolder. "The young generation has a wider social circle; we talk more about factory conditions and we know more about our legal rights," Lan says at a workers' center in this industrial town where she attends seminars on handling late wages and contract termination.

Workers' growing awareness and their willingness to take action are slowly pushing up wages and improving conditions in the manufacturing industry. The Chinese government already moved to increase salaries and labor standards a few years ago. Now it is trying to maintain a delicate balance of improving income levels for workers while not scaring away foreign corporations with higher labor costs.

As wages and other costs rise here, U.S. companies will have to decide whether to take their production to other Asian manufacturing hubs or increase prices for American consumers. This year, strikes at Honda factories and a spate of suicides at Foxconn — a maker of electronics for U.S. companies such as Apple and Dell — raised alarm among corporations and the government that the era of the docile worker had ended. Strikes still happen each week in China, labor rights groups say, but the government doesn't allow them to be reported. The labor unrest is even inspiring strikes in Cambodia and Vietnam, whose workers say they're emboldened by their Chinese colleagues' examples.

For now, factory workers in China "are only making economic demands, not political," says Chang Kai, a labor relations expert at People's University in Beijing who has assisted workers with strike negotiations. But history shows that labor movements don't necessarily follow logical, or peaceful, paths. U.S. railroad and steelworkers staged massive strikes during the late 1800s that led to violence when authorities intervened. In China, "If the government does not treat the workers' struggle for collective bargaining seriously, if it decides to treat these demands as political, then this will turn into a political struggle," says Han Dongfang, a labor activist deported to Hong Kong for his role in the Tiananmen Square protest of 1989.

To a certain extent, the Chinese government is tolerating worker unrest because it recognizes that higher wages translate into more spending that can stimulate the economy. The government wants all residents to share in the country's economic growth, says Juzhong Zhuang, deputy chief economist of the Asian Development Bank, because "high income inequality can lead to social problems that undermine long-term economic growth." The challenge is that the government wants to "offer more protection for workers, but it is also exposed to a lot of pressure from companies" resisting change, says Debby Chan, a project officer for Students & Scholars Against Corporate Misbehavior (SACOM), a workers' advocacy group.

Labor unrest on rise:

After this year's labor unrest, the government is stepping up efforts to unionize companies, says Lesli Ligorner, a Shanghai-based partner at Paul Hastings law firm who represents multinationals doing business in China. The idea is that if workers join the state-controlled All-China Federation of Trade Unions (ACFTU) — the only union allowed in the country — they'll have an avenue other than strikes to air their grievances. Yet having more companies establish unions does little good if those unions don't represent workers, says Han, who founded Hong Kong-based worker advocacy group China Labour Bulletin. "If I'm thirsty and you give me another cup with no water in it, I'll still be thirsty." 

In Beijing, Liu Rongli is trying to make his employer more responsive to workers. Inside a vast workshop, where crane operators sort heavy slabs of metal, Liu calls to order a meeting of the company's trade union. A shout to co-worker Gao Wei, and the full membership is soon sitting down in a grimy room. ……… The trade union was established against the odds in September 2010, thanks to Liu's perseverance. While the group is still under the umbrella of the ACFTU, the new union better represents workers, according to Gao, because "we have a way to negotiate with management." The ACFTU didn't respond to requests for an interview. But one trade union representative describes union meetings as straightforward affairs. The employer "guarantees major decisions in advance," according to Liu Ying, a union worker in a large, state-owned energy company in Dalian, eastern China. "The trade union selects delegates from among all the workers, people we can trust, then these representatives always raise their hands in approval."

Because the union is a "state tool, labor rights fall secondary to social stability," acknowledges Qiao Jian, a director at the China Institute of Industrial Relations. The union does have its strengths, Qiao says. As an offshoot of the Communist Party, the union can implement changes quickly for the benefit of the country's workers. But until major change occurs, and until workers have viable options to air their complaints, strikes will keep rising, predicts Li Qiang, founder of China Labor Watch, a group with offices in New York and Southern China.

No official numbers are available on strikes. But labor cases heard by arbitration committees more than doubled from 2000 through 2007 to 350,182, according to Chinese government data. In 2008, arbitrated cases surged to 693,000 after laws took effect making it cheaper for workers to pursue arbitration and requiring employers to provide written contracts. Young factory workers are frustrated because they're generally not sharing in the country's economic boom, says Eli Friedman, a Ph.D. candidate at the University of California-Berkeley, who spent a year and a half in China studying labor disputes. "They want to make a life in the city," Friedman says. "But if you're making 1,000 yuan a month, it's not going to cut it."

As workers demand higher living standards, companies will have to adapt, says Jeremy Prepscius, Asia managing director for BSR, which advises members on sustainable business strategies. "The old way of managing labor is looking at workers as a plentiful resource," Prepscius says. "The new way is looking at workers as a scarce resource."

Higher price tags in U.S. :

In the Pearl River Delta — known as the factory of the world — a labor shortage is giving migrant workers leverage to negotiate better wages and benefits. Evidence of this can be found along Southern China's dusty streets. In Dongguan city, where three of every four residents are migrant workers, for-hire signs taped to telephone poles compete for people's attention. Brightly colored banners hang from factory gates; one offers 1,300 yuan a month, about $200 U.S., for eight-hour workdays, 26 days a month. Inside a factory of TAL Group, thousands of workers churn out as many as 33,600 shirts and 7,200 pairs of pants daily, sometimes to Chinese pop music bellowing overhead. Many work 10 hours a day.

Orderly chaos reigns on the factory floor, a blur of flying hands and whirring sewing machines. Every 35 to 45 seconds, a dress shirt is sown for clients such as Brooks Bros. and J.C. Penney. An electronic panel hangs from the ceiling, counting down how much clothing remains to be completed during the shift. While TAL has added employees to its busy production lines, it's been harder to recruit them because of the labor shortage, admits Roger Lee, the company's chief operating officer. Labor costs have surged 25% this year due to rising wages and benefits, forcing the company to become more efficient. Yet even with productivity improvements, higher costs mean "we ultimately have to pass along" certain expenses to clients, Lee says. U.S. retailers then have to decide whether to raise prices for consumers.

In the textile industry, labor accounts for as much as a third of production expenses, according to the Economist Intelligence Unit, meaning that U.S. consumers are likely to see higher price tags when costs in China rise. In other industries, where labor represents a small percentage of total costs, U.S. companies may be willing to bear one-time hikes. While higher wages may crimp the profits of U.S. companies making goods in China, they also boost the bottom line of those that sell products here. As Chinese consumers' household income rises, there will be a "stronger market for U.S. goods and services," says Sandra Polaski, U.S. deputy undersecretary of Labor.

Unsafe working conditions:

As workers scramble to meet production quotas, accidents and injuries can occur. Ruan Libing worked at Elec-Tech's appliance factory in Zhuhai, Southern China, for a month when a molding machine mangled his left hand. It had to be amputated. Ruan, 22, is one of about 60 workers who lost fingers or hands or had other accidents at Elec-Tech's Zhuhai factory from July 2009 through June 2010, according to an August report by SACOM, the workers' advocacy group. The group blames the accidents on the pressure to work faster, unsafe machines and insufficient employee training. Eva Chan, vice president of sales and marketing for Elec-Tech, says the company recently upgraded all machines in its Zhuhai factory so they require two hands to operate. No accidents have occurred since then, and the supplier — whose toasters and blenders sell at U.S. retailers such as Walmart, Bloomingdale's and Williams-Sonoma — hasn't lost any clients, according to Chan.

Walmart is "actively monitoring" conditions at the supplier's factories and has asked an independent group to evaluate the machines' safety, says the retailer's spokesman, Kevin Gardner. Unsafe working environments and inadequate pay are common, according to Li, of China Labor Watch. U.S. companies share responsibility, he says, because "they're encouraging the exploitation of Chinese laborers by hiring factories based on the lowest price and the fastest production." This criticism, however, ignores the fact that U.S. companies are investing more money and resources to monitor their suppliers, says Drew Thompson, director of China studies at the Nixon Center, a conservative Washington, D.C., think tank. "By and large, American companies are doing it right." Still, labor experts generally agree that China has a long way to go in improving working conditions. And the surge in job-related strikes and lawsuits may signal that workers are no longer willing to stand idly by. The developments are "incredibly hopeful," says Charles Kernaghan, director of the National Labor Committee, a workers' advocacy group. "You're talking about the biggest working class in the world rising up. Change will come through these people."

Courtesy: USA Today, Dated 19.11.2010