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realclearworld

Chinese automaker to avail itself of Cuban slave labor

imageclef.Lego1_

China has become the world's leading manufacturer by offering Western firms cheap labor costs.  Well, those costs are about to get even cheaper, thanks to Cuban slave labor.

Cuban workers earn about 20 dollars a month, or about 12.5 cents per hour (calculated at 40 hours per week).

The minimum wage in China varies from province to province.  The highest paid workers earn 2.48 dollars per hour; the lowest paid earn 1.24 dollars per hour.

Castro, Inc., owner of all Cuban labor, will probably exact from the Chinese automaker an hourly wage lower than China's, but far higher than what it pays to Cuban workers.  Probably anywhere between 75 cents to one dollar per hour.   The worker will get 12.5 cents and Castro, Inc. will get the rest.

Do the math.  It's very simple.

From CUBA STANDARD (Cuban Business and Economic News)

China plans to build assembly plant in Castrogonia 

— As the Cuban government is gradually freeing new-car sales for individuals, Chinese automaker Geely, already the No. 1 auto seller on the island, is positioning itself for growth in Cuba and the wider region.

The company is planning to establish a semi-knock down (SKD) assembly plant in Cuba, Shanghai Geely International Corporation, Geely’s international arm, announced in a press release republished by Global Times. The company didn’t provide any specifics.

Geely Golden Eagle

Geely Golden Eagle

In an ambitious global expansion plan, Geely set a target of opening 15 assembly plants overseas by 2015, according to an article by Automotive Logistics magazine.

In semi-knock down assembly, a manufacturer typically exports a kit with complete car body, usually coated or already painted, to then add engine and transmission, tires, wheels, seats, headlights, glass, batteries, interior plastics, or other components in final assembly, some of them locally sourced.

“At the request of several ministries in Cuba, including the Ministry of Foreign Trade and Investment, the Ministry of Communications, and the Ministry of Metallurgy Industry, Geely International is now preparing to launch the SKD project in a local place,” the company said in the press release.

Continue reading HERE.

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