Financial Times FT.com

Chinese labour law set to boost costs

By Tom Mitchell in Hong Kong and Geoff Dyer in Shanghai

Published: January 1 2008 16:43 | Last updated: January 1 2008 16:43

Employers in China fear that a new labour contract law that took effect on Tuesday will intensify growing pressures on manufacturing costs by enhancing the bargaining power of workers.

“We estimate that, added together, labour costs [in mainland China] will be close to 40 per cent higher for this year [2008],” said Willy Lin, Hong Kong-based managing director of Milo’s Knitwear (International) Group.

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