BIZCHINA / Analysis

Automakers plan free training

(Shanghai Daily)
Updated: 2007-04-25 14:17

General Motors, Ford and DaimlerChrysler announced today they will
provide training for their suppliers in China on how to keep their
working conditions safe, health and legal.

The plan has the backing of the China Association of Automobile
Manufacturers, a government-supported industry group, the three
automakers said in an announcement, according to The Associated Press.

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General Motors Corp has more than 20,000 employees in China and relies on
suppliers employing thousands more. Ford Motor Co and German-American
automaker DaimlerChrysler AG similarly have many suppliers based in China.

Senior executives of the three automakers were in China's commercial
capital for the weeklong 2007 Shanghai Auto Show, which ends on Saturday.

The automakers will use training designed by the Automotive Industry
Action Group aimed at educating suppliers about Chinese labor laws and
improving compliance with safe working standards, the statement said.

"The single most important resource at any of our member companies is
people," J. Scot Sharland, the action group's executive director, said in
the statement.

"Given the tremendous growth of North American investment in the
developing Chinese automotive supply chain, it is imperative that these
companies are cognizant of local labor laws and fundamentally understand
that Ford, GM and DaimlerChrysler expect 100 percent compliance."

The training is due to begin by the middle of 2007, it said.

The statement cited an unnamed official from the Chinese automotive
industry group noting the need for companies to abide by domestic labor
laws.

Multinational companies operating or sourcing in China are under
intensifying scrutiny for labor conditions at their factories and those
of their suppliers. Meanwhile, China has been urging foreign-invested
companies to let employees join the government-sanctioned labor
federation.

The Automotive Industry Action Group was set up in 1982 to handle
industry-related issues such as cost reduction, product quality, health,
safety and the environment. It has more than 1,500 member companies in
North America, Europe and the Asia-Pacific.

The group said it is also beginning training sessions in Mexico in
mid-2007.

(For more biz stories, please visit Industry Updates)

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