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Asian storms damage transportation system
February 5, 2008

Things here in China now have been hit by devastating storms and the transportation system has had big delays. People have been delayed going home for the biggest holiday of the year, and some workers may extend their holidays because of the weather. Some have not been able to go home at all, which could morale in the workplace, and could cause them to take vacations later. The May holiday has been reduced and more three-day-weekend holidays have been added. That could affect morale too because workers are used to longer holidays. I would expect that deliveries will start up slower this year, more in later February, and ramping up company workload will be more difficult.

Laws around Asia are always in flux, without the familiar concept of grandfathering. Labor laws in China were significantly changed on January 1, adding to corporate costs. Internally in China labor costs are rising quickly and there will be a lot of movement in jobs after the new year as people wait for the annual bonus and holiday visit with the family before they move on. A dangerous time for companies with unhappy management employees. Job switching is very common now and will probably increase with the more qualified managers.

Posted by Walter E. Buczynski on February 5, 2008 | Comments (2)