Han Zheng, the mayor of Shanghai, has just delivered a pleasant surprise to the city’s workers: their minimum wage is to rise by more than 10 per cent in April.
No one will be getting rich – the new rate amounts to a less than princely Rmb1,232 ($187) a month. But Mr Han’s announcement is part of an emerging trend. Chinese officials are seeking to head off a repeat of last year’s labour unrest amid fears that persistent and rising inflation could provide a further irritant in wage discussions.
In a rash of disputes between May and August, employers were hit by strikes or other problems, including Honda’s Chinese subsidiary and some of its China-based Japanese suppliers, such as Omron.
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