@Risk

There’s a growing labor shortage in China, and analysts aren’t exactly sure why.

According to The Wall Street Journal’s blog “China Real Time Report:”

Various domestic media reports put the labor supply gap at around a million people in Guangzhou and neighboring cities such as Dongguan, legendary centers of China’s export boom in the past three decades. Numerous assembly lines and construction sites are sitting idle while anxious employers have raised salaries by more than 30% but still can’t attract enough applicants.

Shen Hong, the author of the post, suggests that at least part of the problem may stem from the fact that new-generation migrant workers aren’t interested in tough basic jobs like construction any more.  The Chinese government has reformed policies and modernized farming to such an extent that rural jobs now compete favorably with work in the city. In addition, second-tier inland cities are experiencing economic booms of their own, and workers may prefer these alternative locations simply because they’re closer to home. Lastly, China’s improved standard of living, in general, means that young workers are less apt to accept the hardships of working in the city, Hong says. (more…)

A recent survey from the Chartered Institute of Logistics and Transport in the UK (CILT) shows that in 2009, 68% of major logistics and supply chain operations have specific plans in place for dealing with the possibility of a flu pandemic as part of their overall disaster recovery strategy—that’s up from  43% in last year’s survey.

Of those companies with specific flu plans, almost two-thirds (63%) include counter measures, such as face masks, gloves and anti-viral medications, in addition to the use of schedule changes, overtime, agency staff, and other arrangements.

After all, as Steve Agg, Chief Executive of CILT said, when it comes to the flu, “Crossing fingers and hoping for the best is not a viable operational strategy.”

Now, though, some companies that took extraordinary precautions are coming under fire from critics. (more…)

Are companies today eliminating wellness programs in hopes of cutting costs?

That’s a good question, considering the current health care debate, apprehensions about employee absenteeism during the upcoming flu season, and the general push these days to improve risk management strategies.

Interestingly, preliminary results from a new survey of more than 400 employers indicate that less than 5% are planning to reduce or eliminate health and productivity programs, despite the downturn in the economy.

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Most businesses in the U.S. are unprepared for widespread employee absenteeism in the event of a swine flu outbreak, according to a Harvard School of Public Health (HSPH) study released yesterday.

The Harvard Opinion Research Program at HSPH polled more than 1,000 companies from July 16 through August 12, 2009. The researchers found that only one-third of respondents believe they could sustain their business without severe operational problems if half their workforce were absent for two weeks due to H1N1.

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