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It may be too early to know the full effects of the massive earthquake that hit China but, as this article that appeared in the on-line version of Hong Kong's South China Morning Post, even Guangdong - a province well outside the stricken area - is affected.
The cities of Guangzhou and Dongguan, both major footwear production centres, are in the province.
GUANGDONG FACTORIES FEEL IMPACT OF QUAKE
Denise Tsang
May 19, 2008
The mainland's worst earthquake in recent history has raised fears of worsening labour shortages in Guangdong as the production peak season approaches.
Many of the about 80,000 Guangdong migrant workers with hometowns in quake-stricken Sichuan province either had headed home or were tempted to go home in search of family and friends, according to industry representatives.
The disaster, following the country's worst blizzards in 50 years earlier this year, marks the latest challenge to manufacturers chasing a diminishing pool of workers to ensure timely shipment of goods.
The natural disasters have compounded problems with the global economic slowdown and labour disputes arising from the controversial labour contract law that came into effect this year.
"Pressure on labour supply is rising especially in Shenzhen and Dongguan," Hong Kong Toys Council chairman Lawrence Chan said. "The situation is getting worse because the peak season is coming up soon."
He added that toy factories usually hired thousands of workers during the production high season in summer to prepare shipments for September and October.
Eddie Lam Kwong-tak, a shoe exporter with about 40,000 workers mainly in Guangdong and Shanghai, said many Sichuan migrant workers were so worried about their family members that they could not concentrate on work, which meant a loss of productivity.
The death toll from the earthquake rose above 32,000 yesterday while casualties numbered about 220,000, according to the central government. At least 14,000 people remained missing.
"Many of the workers can't focus on work, and we let them watch the TV to keep up with the latest news," Mr Lam said. "We still have about 20 workers who don't know the whereabouts of their folks."
He added that the quake, which destroyed highways and infrastructure, would probably discourage Hong Kong producers from moving their factories from Guangdong to inland regions such as Sichuan.
"The migration would only be [feasible] if logistics and other parts of the supply chain services are available," he said, adding that rail and road transportation inland was relatively insufficient and logistics costs were higher than in Guangdong.
Federation of Hong Kong Industries deputy chairman Stanley Lau Chin-ho believed a limited number of Hong Kong-owned factories in Sichuan were affected by the quake.
http://www.scmp.com/
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