While U.S. Wages Rise, Labor Hits Headwinds In China

As unemployment in the U.S. continues to moderate and real wages appear finally to be on the way up, organized labor has come under pressure in southern China, a major manufacturing area. Factories are closing down or moving to lower-wage locations (including Vietnam), there have been strikes and protests, and police have arrested three prominent labor activists, the New York Times reports. Meanwhile in Germany, where labor unions have long had a seat at the corporate governance table by way of worker councils, a major international investor at beleaguered Volkswagen – the Qatar Investment Authority – was reported to be demanding a scaling back of labor’s influence, but that was later denied by the company, according to a Reuters report. In any case, beleaguered Volkswagen is under intense pressure to cut costs so it will be able to pay billions in fines, legal settlements, recalls and other costs.