In India the parallel counterpart is organized workers and unorganized
workers.  The former come under regulations the latter do not.  Unorganized
are typically contract workers.  In the auto in industry in India contract
wotrkers are hired due to allegedly labor market rigidities.  But the China
Honda ratio of intern to regular seems awfully high compared to India's.  If
anyone is interested in India's industrial relations in the auto industry
contact me offlist.

Cheers, Anthony

On Sat, Jun 5, 2010 at 11:20 PM, Martin Hart-Landsberg <[email protected]>wrote:

> Formal workers are the same as  regular workers, which means that they are
> covered by the national labor law.  intern workers are irregular workers in
> that they are not covered by the law.  Primarily they are workers from rural
> areas that attend a trade school to learn job skills and then after two
> years of paying for their training are sent to the city in response to
> requests from labor contractors who are hired by the major manufacturing
> companies to find them workers.  They work for low wages with no basic job
> protections.
>
> As the article I forwarded earlier noted, some 80 percent of the workers at
> Honda's key plant were so called interns and they received wages below those
> received by the formal or regular workers.
>
> China publishes wage data that cover only their formal sector and many of
> the labor law reforms also cover only the formal labor sector.  When the
> state passed a labor contract law and other supporting laws in early 2008
> which provided some additional protections to workers--such as requiring
> that they actually receive a written contract and premium pay for
> overtime--many companies responded by obtaining more of their workers
> through other channels, including dispatch agencies, interns, and the like.
>
> In this case the formals and interns stuck together for a sizeable increase
> in wages--in short, the formal workers accepted that solidarity demanded a
> narrowing of the gap since both sets of workers did basically the same
> work.  Thus they demanded, and apparently won, a set increase in per hour
> wages for both groups, which yielded a higher percentage increase for the
> interns.
>
> Marty
>
> On 06/05/10, *Carrol Cox * <[email protected]> wrote:
>
> How are "formal" workers distinguished from "intern" workers? What do
> the terms mean in practice.
>
> Carrol
>
> Martin Hart-Landsberg wrote:
> >
> > A short update--Apparently the formal workers will have a 32.4% wage
> > increase while the intern workers will get a 70% increase.
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Anthony P. D'Costa
Professor of Indian Studies and Research Director
Asia Research Centre
Copenhagen Business School
Porcelænshaven 22, 3
DK-2000 Frederiksberg, Denmark
Ph: +45 3815 2572
Fax: +45 3815 2500
http://uk.cbs.dk/arc
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